2012-11-01 11:01:00 CET
2012-11-01 11:01:04 CET
REGULATED INFORMATION
Metsä Group - Interim report (Q1 and Q3)
Metsä Group’s operating result for January–September EUR 181 million excluding non-recurring items
Metsä Group Interim Report 1-9/2012 Stock Exchange Release 1 November 2012 at
12 noon
Result for January-September
- Sales amounted to EUR 3,773 million (1-9/2011: EUR 4,123 million).
- Operating result excluding non-recurring items was EUR 181 million (311).
Operating result including non-recurring items was EUR 161 million (229).
- Result before taxes excluding non-recurring items was EUR 106 million (217).
Result before taxes including non-recurring items was EUR 86 million (130).
Result for July-September 2012
- Sales totalled EUR 1,242 million (7-9/2011: EUR 1,317 million).
- Operating result excluding non-recurring items was EUR 67 million (63).
Operating result including non-recurring items was EUR 56 million (44).
- Result before taxes excluding non-recurring items was EUR 35 million (35).
Result before taxes including non-recurring items was EUR 25 million (17).
Events in the third quarter of 2012
- Pulp deliveries improved on the previous quarter, but market prices
decreased. Delivery volumes of paperboard increased on the previous quarter,
with prices remaining stable.
- Metsä Wood decided to invest EUR 30 million in upgrading its Vilppula
sawmill. The investment will be carried out in 2013.
- A new paper machine was commissioned in Metsä Tissue's Krapkowice mill in
Poland. The investment programme includes two new paper machines, the second of
which will be commissioned next year.
- The bark gasification plant at Metsä Fibre's Joutseno mill was introduced for
trial use in July. With this plant, the mill will be the first carbon dioxide
neutral pulp mill in Finland.
Events after the period
- A biopower plant was opened at Metsä Board's Kyro mill on 9 October. The
biopower plant, owned by Pohjolan Voima and Leppäkosken Sähkö, will increase
the use of renewable fuels and decrease carbon dioxide emissions from energy
production in the Hämeenkyrö region.
“Market predictability continues to be low, especially due to the unstable
economic situation in Europe. Therefore careful planning of business operations
and continuous efficiency improvement of all functions play a key role at Metsä
Group.
Our investment programme is proceeding according to plan. A new paper machine
was commissioned in Metsä Tissue's Krapkowice mill in Poland as part of the
development programme aiming to improve the productivity and energy efficiency
and reduce the carbon footprint of production activity.
Our strategy to focus on pulp, board and tissue and cooking papers brings
stability to our operations also in this market situation.”
Kari Jordan, President & CEO, Metsä Group
Metsä Group
Income statement 2012 2011 2012 2011 2011
1-9 1-9 7-9 7-9 1-12
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Sales 3 773 4 123 1 242 1 317 5 346
Other operating income 52 64 14 14 95
Operating expenses -3 467 -3 692 -1 134 -1 210 -5 058
Depreciation and impairment losses -197 -265 -66 -76 -354
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Operating result 161 229 56 44 29
Share of profit from associates 5 5 1 2 4
Exchange gains and losses 1 2 2 1 2
Other net financial items -81 -106 -34 -31 -133
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Result before income tax 86 130 25 17 -98
Income taxes -34 -81 -9 -21 -59
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Result for the period 52 50 16 -4 -157
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Metsä Group
Profitability 2012 2011 2012 2011 2011
1-9 1-9 7-9 7-9 1-12
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Operating result, EUR mill. 161 229 56 44 29
- “ -, excluding non-recurring items 181 311 67 63 314
- “ - % of sales 4.8 7.6 5.4 4.8 5.9
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Return on capital employed, % 6.1 8.0 5.9 4.9 1.1
- ” -, excluding non-recurring items 6.8 10.9 7.0 6.7 8.5
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Return on equity, % 4.1 3.9 3.5 -0.9 -9.9
- ” -, excluding non-recurring items 5.8 10.8 5.9 3.4 8.6
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Financial position 2012 2011 2012 2011 2011
30.9 30.9 30.6 30.6 31.12
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Equity ratio, % 34.4 31.0 33.8 30.9 28.3
Net gearing ratio, % 89 113 94 121 131
Interest-bearing net liabilities, EUR mill. 1 648 1 895 1 705 2 051 1 953
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Segments
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Sales and Operating Wood Wood Pulp Paperboard and Tissue and
result Supply Produc Indust Paper Cooking
January-September 2012 ts ry Industry Papers
(EUR mill.) Indust
ry
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Sales 1 140 688 952 1 599 727
Other operating income 7 7 8 177 10
Operating expenses -1 132 -656 -798 -1 511 -678
Depreciation & impairment -2 -23 -42 -86 -32
losses
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Operating result 13 16 120 179 27
Non-recurring items - 1 -2 -130 -
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Operating result, excl. 13 17 117 49 27
non-rec. items
- % of sales 1.2 2.4 12.3 3.1 3.7
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Near-term outlook
Metsä Forest is actively purchasing wood. In Finland, priority in purchases is
still given for pine logs, birch pulpwood and energy wood in particular.
The low demand for sawn timber and factors of uncertainty concerning log
harvesting are expected to impair Metsä Wood's result outlook for the fourth
quarter, and adjustments in sawmill activities may be inevitable.
The utilisation rates of Metsä Fibre's pulp mills are expected to remain good
in the fourth quarter. The USD denominated market price of long fibre pulp is
expected to increase slightly during the rest of the year, but the average
price of fourth-quarter deliveries is expected to be slightly lower than in the
third quarter.
Metsä Board's paperboard delivery volumes are expected to seasonally fall
slightly short of the level of the third quarter during the fourth quarter.
Delivery volumes of paper and pulp are expected to be at least at the third
quarter level.
Average folding boxboard prices are not expected to change materially in the
coming months. No significant changes in the price of paper are visible.
Linerboard prices will be slightly higher in the fourth quarter than the third
quarter as the result of a price increase that took effect in September. It is
estimated that the increase in the price of linerboard is not sufficient to
fully compensate the negative impact on the result due to the lower delivery
volumes during the fourth quarter.
The steady growth in the demand for tissue and cooking papers continues.
Despite cost pressure, profitability is expected to be at the same level or
somewhat higher compared with the previous quarter.
The predictability of the market will continue to be poor due to the European
economic situation. Metsä Group's operating result excluding non-recurring
items in the fourth quarter of 2012 is expected to be at approximately the same
level as in the previous quarter.
Disclosure procedure
Metsä Group follows the disclosure procedure enabled by Standard 5.2b published
by the Finnish Financial Supervision Authority and hereby publishes its Interim
Report for January-September 2012 enclosed to this stock exchange release.
Metsä Group's complete Interim Report is attached to this release in pdf-format
and is also available on the company's web site at www.metsagroup.com.
METSÄ GROUP
Group Communications
For further information, please contact:
Vesa-Pekka Takala, CFO, Metsä Group, tel. +358 (0)10 465 4260
Reeta Kaukiainen, SVP, Metsä Group Communications, tel. +358 (0)10 465 4541,
+358 (0)50 522 0924
www.metsagroup.com
Metsä Group is a responsible forest industry group whose products are part of
people's everyday life and promote sustainable well-being. Metsä Group produces
high-quality products mainly from renewable Nordic wood. The Group's business
areas are tissue and cooking papers, board and paper, pulp, wood products as
well as wood supply. Metsä Group's sales totalled EUR 5.3 billion in 2011, and
it employs approximately 12,500 people. The Group is present in some 30
countries.
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