2014-07-31 11:01:00 CEST
2014-07-31 11:01:02 CEST
REGULATED INFORMATION
Metsäliitto Osuuskunta - Interim report (Q1 and Q3)
Metsä Group’s operating result for January–June excluding non-recurring items was EUR 197 million
Metsä Group Interim Report 1 January-30 June 2014 Stock Exchange Release 31
July 2014 at noon EET
Result for the first half of 2014
- Sales amounted to EUR 2,519 million (1-6/2013: EUR 2,506 million).
- Operating result excluding non-recurring items was EUR 197 million (183).
Operating result including non-recurring items was EUR 230 million (184).
- Result before taxes excluding non-recurring items was EUR 157 million (131).
Result before taxes including non-recurring items was EUR 183 million (131).
- Return on capital employed excluding non-recurring items was 11.3 per cent
(9.8).
- Cash flow from operations amounted to EUR 193 million (125).
Result for the second quarter of 2014
- Sales amounted to EUR 1,265 million (4-6/2013: EUR 1,242 million).
- Operating result excluding non-recurring items was EUR 92 million (94).
Operating result including non-recurring items was EUR 160 million (89).
- Result before taxes excluding non-recurring items was EUR 77 million (73).
Result before taxes including non-recurring items was EUR 146 million (69).
- Return on capital employed excluding non-recurring items was 10.3 per cent
(9.7).
- Cash flow from operations amounted to EUR 226 million (144).
Events during the second quarter of 2014
- Metsä Group announced it was preparing to build a bioproduct mill in
Äänekoski. The final investment decision will be made during the first half of
2015.
- In April, Metsä Fibre sold a total of 170,000 of Pohjolan Voima Oy's B shares
to Kymppivoima Oy for EUR 75 million.
- The USD price of softwood pulp continued to increase slightly in all markets.
- Paperboard delivery volumes increased compared to the previous quarter. The
average market price levels for paperboards remained unchanged.
- The profitability of the wood products industry improved as a result of
increased sales prices, efficiency programmes and seasonal changes in demand.
- The share capital of Metsä Wood Eesti AS, the owner of the Reopalu sawmill,
was sold to an Estonian wood products company.
- Metsä Board Corporation's Board of Directors appointed Mika Joukio, currently
CEO of Metsä Tissue Corporation, as CEO of Metsä Board Corporation as of 1
December 2014 at the latest.
“As expected, our operating result excluding non-recurring items for the second
quarter of 2014 was slightly weaker compared to the previous quarter, mainly
because of annual maintenance shutdowns, some of which were more extensive than
usual.
The European economy is yet to change for the better. Therefore, it is
essential to ensure that our operations are competitive. At Metsä Group, this
means continuous competence development, seeking productivity and efficiency,
and investing in product areas with promising long-term growth prospects.
Practical examples of our development measures include the efficiency programme
that Metsä Wood launched last year and the plans we announced in April to build
a bioproduct mill in Äänekoski, Finland.
Industrial investment decisions need to be supported by proper actions from the
government. The cancellation of the windfall tax is a positive sign, but
further measures are needed. In addition to the sulphur directive, it seems
that if implemented, the EU 2030 climate change and energy policy will
significantly burden industry and households. We all benefit from lower
emissions and climate change mitigation, but it is equally important to take
care of the competitiveness of the domestic industry.”
Kari Jordan, President & CEO, Metsä Group
Metsä Group
Income statement, EUR million 2014 2013 2014 2013 2013
The figures for 2013 are 1-6 1-6 4-6 4-6 1-12
restated
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Sales 2 519.2 2 505.5 1 264.9 1 241.9 4 938.7
Other operating income 124.3 39.2 88.2 23.3 81.0
Operating expenses -2 287.8 -2 233.2 -1 135.3 -1 -4 427.7
117.9
Depreciation and impairment -125.8 -127.9 -57.7 -58.0 -257.1
losses
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Operating result 229.8 183.7 160.2 89.2 335.0
Share of results from
associated
companies and joint ventures 15.3 9.5 7.9 2.9 9.6
Exchange gains and losses -1.2 0.0 0.9 -0.2 -4.6
Other net financial items -61.1 -61.9 -23.3 -23.0 -116.2
Result before income tax 182.9 131.3 145.7 68.9 223.8
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Income taxes -41.2 -34.8 -35.8 -18.8 -35.1
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Result for the period 141.7 96.6 109.9 50.1 188.7
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Profitability 2014 2013 2014 2013 2013
The figures for 2013 are restated 1-6 1-6 4-6 4-6 1-12
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Operating result, EUR mill. 229.8 183.7 160.2 89.2 335.0
- “ -, excluding non-recurring items 196.6 183.0 91.5 93.7 342.9
- “ - % of sales 7.8 7.3 7.2 7.5 6.9
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Return on capital employed, % 12.6 9.8 17.2 9.3 8.9
- ” -, excluding non-recurring items 11.3 9.8 10.3 9.7 9.1
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Return on equity, % 14.4 10.4 22.4 10.7 9.9
- ” -, excluding non-recurring items 11.8 10.3 8.4 11.6 10.3
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Financial position 2014 2013 2014 2013 2013
The figures for 2013 are restated 30.6. 30.6. 31.3. 31.3. 31.12.
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Equity ratio, % 37.9 34.8 37.2 34.9 37.9
Net gearing ratio, % 70 90 83 90 77
Interest-bearing net liabilities, EUR mill. 1 389 1 669 1 614 1 695 1 510
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Segments
Sales and Operating Wood Supply Wood Pulp Paperboard Tissue and
result and Forest Products Indust and Paper Cooking
January-June 2014 Services Industry ry Industry Papers
(EUR mill.)
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Sales 814.4 473.7 654.7 995.2 502.7
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Other operating 2.8 4.0 27.5 39.4 2.9
income
Operating expenses -801.5 -440.8 -537.7 -909.5 -465.2
Depreciation & -1.5 -14.9 -33.0 -49.4 -19.0
impairment losses
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Operating result 14.2 22.0 111.6 75.7 21.5
Non-recurring items 1.5 1.0 -20.3 -11.3 -
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Operating result, 15.7 23.0 91.3 64.4 21.5
excl. non-rec.
items
- % of sales 1.9 4.9 13.9 6.5 4.3
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Near-term outlook
Metsä Forest buys wood across the country, primarily thinning stands
harvestable during the unfrosen period.
Compared to the second quarter, sales in the wood products industry are
expected to decrease due to seasonal changes. The demand outlook for spruce
sawn timber in particular has weakened for the rest of the year because of
increased supply. Slow construction in the main markets will have an effect on
the delivery volumes of Kerto products in the third quarter. The market
situation for other wood products is reasonable, and the market balance of
birch plywood is good.
The global demand for pulp is expected to continue to grow, and softwood pulp
supply and demand are expected to be in a balance in the near future.
Compared to the second quarter, the delivery volumes of folding boxboard and
white-top fresh forest fibre linerboard are estimated to increase slightly in
the third quarter of 2014. No material price changes are in sight.
The delivery volumes of uncoated fine paper, coated papers and market pulp in
the third quarter of 2014 are expected to remain at approximately the same
level as in the previous quarter. No material changes are in sight in the price
of paper.
Demand in the tissue paper market is expected to continue to grow in all market
areas and particularly in the Central-East Europe.
Metsä Group's operating result excluding non-recurring items for the third
quarter of 2014 is expected to be at approximately the same level as in the
second 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-June 2014 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, Communications, Metsä Group, tel. +358 (0)10 465 4541,
+358 (0)50 522 0924
www.metsagroup.com
Metsä Group is a responsible forest industry group whose products' main raw
material is renewable and sustainably grown northern wood. Metsä Group focuses
on tissue and cooking papers, consumer packaging paperboards, pulp, wood
products, and wood supply and forest services. Its high-quality products
combine renewable raw materials, customer-orientation, sustainable development
and innovation. Metsä Group's sales totalled EUR 4.9 billion in 2013, and it
employs approximately 11,000 people. The Group operates in some 30 countries.
Metsäliitto Cooperative is the parent company of Metsä Group and is owned by
approximately 123,000 Finnish forest owners.
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