2007-10-25 11:32:34 CEST
2007-10-25 11:32:34 CEST
REGULATED INFORMATION
M-real - Quarterly report
M-real Corporation Interim Report January-September 2007
M-real Corporation Stock Exchange Release 25.10.2007
M-real's operating profit excluding non-recurring items
in the third quarter increased to EUR 42 million
Result for the third quarter of 2007
* Sales were EUR 1,366 million (Q2/07: 1,360)
* Operating profit excluding non-recurring items was EUR 42 million
(4). Operating profit including non-recurring items was EUR 49
million (-9)
* Result before taxes, excluding non-recurring items, was EUR -3
million (-29). Result before taxes, including non-recurring
items, was EUR 4 million (-42)
Result for the first nine months of 2007
* Sales were EUR 4,158 million (Q1-Q3/06: 4,186)
* Operating profit excluding non-recurring items was EUR 77 million
(31). Operating profit including non-recurring items was EUR 144
million (-25)
* Result before taxes, excluding non-recurring items, EUR -47
million (-61). Result before taxes, including non-recurring
items, was EUR 20 million (-117)
Events during the third quarter
* M-real agreed to sell the paper merchant Map Merchant Group to
Sequana Capital's subsidiary Antalis. The total value of the
divestment was EUR 382 million. It is estimated that a capital
gain of EUR 80 million will be recognised for the transaction. EU
Commission approved the sale.
* Machine line 2 of the Tako board mill located in Finland and the
Wifsta fine paper mill located in Sweden were shut down.
* M-real negotiated on the sale of its speciality paper mill
Zanders Reflex located in Germany to Arjowiggins Group. The sales
contract was signed on 12 October 2007. The implementation of the
transaction requires the approval of the competition authorities.
- "Despite the difficult operating environment, M-real's result
improved clearly. The higher prices of uncoated fine paper, the
strong demand for packaging board as well as successful profit
improvement measures support the development of comparable profit,
too. The rise of production costs is continuing - nevertheless we are
able to cover the higher costs through our own actions. As the
ongoing programmes are completed, we will start new profit
improvement programmes, the aim of which is to cover the higher
production costs in 2008 and 2009 as well."
Mikko Helander, CEO, M-real Corporation
Q1-Q3 Q1-Q3
KEY FIGURES Q3/07 Q2/07 Q3/06 2007 2006 2006
Sales, MEUR 1,366 1,360 1,367 4,158 4,186 5,624
EBITDA, MEUR 123 73 106 397 251 299
excl. non-recurring items, 118
MEUR 84 108 314 307 411
Operating profit, MEUR 49 -9 15 144 -25 -271
excl. non-recurring items, 42
MEUR 4 17 77 31 45
Result before taxes, MEUR 4 -42 -22 20 -117 -408
excl. non-recurring items, -3
MEUR -29 -20 -47 -61 -92
Result for the period, MEUR -8 -49 -33 -3 -133 -399
Earnings per share, EUR -0.02 -0.15 -0.10 -0.01 -0.40 -1.21
Return on equity, % -1.6 -10.4 -6.1 -0.2 -7.9 -18.9
excl. non-recurring items, -3.1
% -8.8 -5.8 -5.8 -4.7 -4.4
Return on capital employed, 4.6
% -0.5 1.8 4.6 -0.2 -5.2
excl. non-recurring items, 3.9
% 0.7 2.0 2.6 1.4 1.4
Equity ratio at end of 32.7
period, % 32.8 34.3 32.7 34.3 30.9
Gearing ratio at end of 117
period, % 117 111 117 111 126
Interest-bearing net
liabilities
at end of period, MEUR 2,187 2,192 2,402 2,187 2,402 2,403
Gross investments, MEUR 66 62 101 178 305 428
Paper deliveries, 1,000 975
tonnes 965 1,031 2,969 3,151 4,192
Paperboard deliveries, 297
1,000 tonnes 313 285 912 873 1,161
Personnel at end of period 12,449 13,302 14,509 12,449 14,509 14,125
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Result for July-September compared to the previous quarter
Sales totalled EUR 1,366 million (Q2/07: 1,360). Operating profit
totalled EUR 49 million (Q2/07: -9). It includes, as a positive
non-recurring item, decrease of the cost provision for completing the
closedown of the Sittingbourne mill by EUR 7 million. Operating
profit excluding non-recurring items was EUR 42 million (4).
The previous quarter's operating profit included non-recurring costs,
EUR 9 million in cost provisions and EUR 2 million in asset
write-downs related to the profitability improvement programme in
Finland. These figures include, for example, the closedown expenses
incurred from paperboard machine line No. 2 at the Tako board mill.
The operating profit also included a loss on sale of EUR 2 million
from the divestment of the carton plants in Finland and Hungary.
Net non-recurring items in the third quarter of 2007 totalled EUR 7
million (Q2/07: -13).
Operating profit excluding non-recurring items compared to the
previous quarter improved by the profit improvement programme and the
approximately 2 per cent price increase in selling price of uncoated
magazine paper. The demand for coated magazine was strengthened and
the price decreases have levelled off. The operating profit in the
previous quarter was negatively affected by maintenance shutdowns.
The cost of wood continued to rise in the third quarter.
In July-September the volume of paper deliveries totalled 975,000
tonnes (Q2/07: 965,000). Production was curtailed by 60,000 tonnes
(50,000) in line with demand. Paperboard deliveries totalled 297,000
tonnes (313,000) and there were no production curtailments (31,000).
Financial income and expenses totalled EUR -46 million (-32).
Exchange differences from trade receivables, trade payables,
financial items and the valuation of currency hedging were EUR -2
million (2). Net interest and other financial expenses amounted to
EUR -44 million (-34). Other financial expenses include a profit of
EUR 6 million (7) from unwinding and valuation of interest rate
hedges.
The result before taxes for the review period was EUR 4 million
(-42). The result before taxes, excluding non-recurring items,
totalled EUR -3 million (-29). The negative impact of income taxes,
including the change in deferred tax liabilities, was EUR 12 million
(7).
Earnings per share were EUR -0.02 (-0.15). Excluding non-recurring
items, earnings per share were EUR -0.04 (-0.13). Return on equity
was -1.6 per cent (-10.4), and -3.1 per cent (-8.8) excluding
non-recurring items. The return on capital employed was 4.6 per cent
(-0.5), and 3.9 per cent (0.7) excluding non-recurring items.
Result for January-September compared with the corresponding period
last year
Sales totalled EUR 4,158 million (Q1-Q3/06: 4,186). Operating profit
was EUR 144 million (-25). The operating profit excluding
non-recurring items amounted to EUR 77 million (31).
Net non-recurring items in January-September 2007 totalled EUR 67
million, the most significant being:
* sales gain of EUR 135 million from Metsä-Botnia shares
* a cost provision of EUR 14 million for completing the closedown
of the Sittingbourne mill in the first quarter and the decrease
of this cost provision by EUR 7 million in the third quarter
* a cost provision of EUR 29 million for completing the closedown
of the Wifsta mill
* an impairment loss of EUR 16 million from the valuation of assets
held for sale at the expected selling price in compliance with
IFRS 5
* a total of EUR 11 million consisting of a cost provision and
asset write-downs related to the programme to improve
profitability of operations in Finland.
Net non-recurring items in January-September 2006 totalled EUR -56
million, the most significant being:
* a sales loss of EUR 37 million for the Pont Sainte Maxence paper
mill
* a cost provision totalling EUR 19 million related to the
efficiency improvement programmes at the Alizay, Stockstadt and
Hallein mills.
The profitability of all business areas except for Publishing
improved. The market situation for Publishing business area was
challenging during the first six months of the year and the selling
prices decreased.
Operating profit excluding non-recurring items improved following the
implemented cost savings and the approximately 9 per cent price hike
for uncoated fine paper. In addition, Consumer Packaging business
area clearly improved its profitability mainly due to increased
deliveries.
The operating profit excluding non-recurring items was affected by on
average 8 per cent weaker U.S. dollar, increase in pulpwood price and
production losses at pulp mills due to the weakened availability of
wood.
The volume of paper deliveries in January-September totalled
2,969,000 tonnes (3,151,000). Production was curtailed by 151,000
tonnes in line with demand (151,000). Paperboard deliveries amounted
to 912,000 tonnes (873,000) and production curtailments to 48,000
tonnes (41,000).
Financing income and expenses totalled EUR -124 million (-92). The
increase in net financing expenses is a result of the higher market
interest rate, the downgrading of the company's credit rating, and
foreign exchange gains in the corresponding period last year. Foreign
exchange gains and losses from accounts receivable, accounts payable,
financial income and expenses and the valuation of currency hedging
were EUR -5 million (4). Net interest and other financing expenses
stood at EUR -119 million (-96). Other financing expenses include EUR
9 million (6) in gains from the unwinding of interest rate hedging
and gains from the valuation of interest rate hedging.
The result before taxes was EUR 20 million (-117). The result before
taxes, excluding non-recurring items, totalled EUR -47 million (-61).
Income taxes, including the change in deferred tax liabilities, were
EUR -23 million (-16).
Earnings per share were EUR -0.01 (-0.40). Excluding non-recurring
items, earnings per share were EUR -0.25 (-0.23). Return on equity
was -0.2 per cent (-7.9), and -5.8 per cent (-4.7) excluding
non-recurring items. The return on capital employed was 4.6 per cent
(-0.2), and 2.6 per cent (1.4) excluding non-recurring items.
Personnel
On 30 September 2007 the company had 12,449 employees (31 December
2006: 14,125), of which 3,687 (4,220) worked in Finland. Divestments
accounted for a reduction of 655 employees in 2007. In
January-September 2007 M-real employed an average of 13,370 people
(Q1-Q3/06: 15,085). In 2007 the figures include 30 per cent of
Metsä-Botnia's personnel compared to 39 per cent in 2006.
Investments
Gross capital expenditure in January-September 2007 totalled EUR 178
million (Q1-Q3/06: 305). This includes a EUR 95 million share of
Metsä-Botnia's capital expenditure (161), based on M-real's
ownership, which in 2007 amounted to 30 per cent and in 2006 to 39
per cent.
Metsä-Botnia's pulp mill investment in Uruguay is progressing as
planned, and the construction and installation works are technically
nearly completed. The mill's start-up process will begin as soon as
the Uruguayan environmental authorities permit it. As the new mill
will start up, M-real will gain self-sufficiency in pulp, in line
with its strategy. The Uruguay mill will be one of the world's most
cost-efficient chemical pulp mills.
Structural change
The restructuring programme started in October 2006 is progressing on
an extended scale. In January 2007, M-real sold 9 per cent of the
shares of Metsä-Botnia to Metsäliitto Group for EUR 240 million, for
which it booked a capital gain of EUR 135 million. The Sittingbourne
fine paper mill in the UK was closed at the end of January and the
Gohrsmühle fine paper machines 6 and 7 in Germany were shut down at
the end of February. The Wifsta fine paper mill in Sweden was closed
in July. A total of about one-third of the production of the machines
that were shut down has been transferred to M-real's other machines.
Related to the closures, EUR 76 million was recognised as an expense
in the 2006 financial statements and an expense reserve of EUR 36
million was booked in the first quarter of 2007 for the completion of
closures. The closures' impact on cash flow is approximately EUR -70
million, slightly over half of which will be realised in 2007 and the
rest in 2008-2015.
The statutory negotiations related to the profit improvement
programme in Finland were concluded during the summer. The
programme's overall impact on staff is approximately 500 person work
years. The talks also agreed on changes in vacancies and on other
enhancement measures, which will decrease the need for temporary
employees and holiday replacements by some 100 person work years.
Previous measures and those now agreed on will result in annual cost
savings of approximately EUR 40 million in Finnish operations. They
will be felt in full from the beginning of 2009. The non-recurring
expenses resulting from the programme, totalling some EUR 11 million,
were recognised in the second quarter. The amount includes an asset
write-down of approximately EUR 2 million. Paperboard machine line 2
at the Tako board mill, with an annual capacity of 70,000 tonnes, was
closed down in July as announced previously. Most of the production
has been transferred to other machines in the Consumer Packaging
business area.
At the turn of May and June M-real sold Tako Carton Plant Ltd. to
Finnish Pyroll Oy and M-real Petöfi Nyomda Kft to Germany's STI
Group. The total debt-free transaction price of the divestment of
these carton plants located in Finland and Hungary was EUR 35
million. A loss of EUR 2 million from the transactions was booked in
the second-quarter result. Excluding non-recurring items, the
transactions will have a slightly negative impact on the operating
result in 2007 and will lead to a decrease of approximately EUR 55
million in annual sales and in personnel by approximately 580. The
sales process of the Meulemans carton plant continues.
In July, M-real announced its plans to sell Map Merchant Holdings BV
and its subsidiaries to the French Antalis International SAS. The
total value of the transaction, including possible debt and pension
liabilities, is EUR 382 million. M-real expects to recognise a gain
of approximately EUR 80 million in the figures for the quarter in
which the sale is closed. The deal will not significantly affect
M-real's result before taxes, except for the non-recurring profit
impact of the closed sale. Gearing is estimated to decrease as a
result of the divestment by approximately 20 percentage points. The
EU Commission has approved the sale and the transaction is expected
to be completed during the fourth quarter of 2007. Once the
transaction has been finalised, M-real will have sold over EUR 650
million worth of asset items, exceeding its target of EUR 500
million.
In July, M-real exercised its contractual purchasing right to buy,
for about EUR 13 million, the Kyröskoski gas combined power plant and
the land on which M-real's Kyröskoski mills are located.
Financing
At the end of September the equity ratio was 32.7 per cent (31
December 2006: 30.9) and the gearing ratio 117 per cent (126). Some
of M-real's loan agreements set a 120 per cent limit on the company's
gearing ratio and a 30 per cent limit on the equity ratio. Calculated
as defined in the loan agreements, the gearing ratio at the end of
September was approximately 102 per cent (111) and the equity ratio
approximately 36 per cent (34).
Net interest-bearing liabilities totalled EUR 2,187 million at the
end of September (2,402). 12 per cent of the long-term loans were
denominated in foreign currencies. 77 per cent of the loans were
floating-rate and the rest fixed-rate. At the end of September the
average interest rate on loans was 7.0 per cent and the average
maturity of long-term loans 3.7 years. The interest rate maturity of
loans was 5.3 months at the end of September. During the period it
varied from 5 to 8 months.
Cash flow from operations in January-September amounted to EUR 228
million (Q1-Q3/06: 188). Working capital was up by EUR 32 million
(74).
At the end of September, an average of 6 months of net foreign
exchange exposure was hedged. The degree of hedging varied between 6
and 7 months during the period. At the end of September,
approximately 95 per cent of foreign-currency-denominated
shareholders' equity was hedged.
Liquidity is good. At the end of September liquidity was EUR 985
million, of which EUR 856 million consisted of binding long-term
credit agreements and EUR 129 million of liquid assets and
investments. In August, a remaining tranche of approximately EUR 350
million of a EUR 850 million revolving credit facility that matures
in November 2007 was cancelled. There is no reason to renew this
facility due to the adequate liquidity reserve. To meet its
short-term financing needs, M-real also had non-binding domestic and
foreign commercial paper programmes and credit facilities amounting
to nearly EUR 600 million.
Shares
In January-September, the highest price of M-real's B share on the
OMX Nordic Exchange was EUR 5.94, the lowest EUR 3.57 and the average
price EUR 4.89. At the end of September the price of the B share was
EUR 3.92. The average price in 2006 was EUR 4.41. The closing price
for 2006 was EUR 4.79.
The trading volume of B shares in January-September was EUR 1,923
million, or 135 per cent of the share capital. The market value of
the A and B shares totalled EUR 1,287 million at the end of
September. Metsäliitto Cooperative owned 38.6 per cent of the shares
at the end of September and held 60.5 per cent of the voting rights
conferred by these shares. International investors owned 40.4 per
cent of the shares.
On 13 March 2007 the Annual General Meeting authorised the Board of
Directors to decide on increasing the share capital through one or
more share issues and/or one or more issues of convertible bonds in
compliance with Chapter 10 of the Companies Act so that in either
case a maximum of 58,365,212 of M-real Corporation's B shares with a
nominal value of EUR 1.70 can be subscribed for and the company's
share capital can be increased by a maximum of EUR 99,220,860.40. The
authorisation, valid until further notice, entitles a deviation from
the shareholders' pre-emptive right to subscribe for new shares
and/or issues of convertible bonds and to decide on the subscription
prices and other terms and conditions. The shareholders' pre-emptive
subscription rights can be deviated from provided that there is a
significant financial reason for the company to do so, such as
strengthening the balance sheet, enabling business restructuring or
developing the company's business in other ways.
Events after the period
On 12 October 2007 M-real agreed to sell Zanders Reflex speciality
paper mill in Düren, Germany to Arjowiggins Group. M-real will book a
non-recurring loss of approximately MEUR 20 from the transaction. The
transaction is expected to be completed by the end of 2007 and it
will be booked in the result for the last quarter. The sale has no
material impact on M-real's operating profit excluding non-recurring
items. The transaction is subject to approval by the competition
authorities.
Wood supply
The wood supply situation has continued to be tight. Mills have been
sufficiently supplied with wood for example from storm hit areas in
Sweden and Germany. Some special arrangements have been made in
production by, for example, bringing forward some maintenance
shutdowns.
The demand for, and the price level of, pulpwood is expected to
remain high. Due to the low wood stocks and the delivery situation in
Russia, wood supply to mills will continue to be challenging in the
last quarter of the year.
Outlook
The demand for M-real's main products is expected to be good in the
last quarter of 2007. The price development of office papers and
packaging board is expected to be good also in the fourth quarter.
Despite the weaker U.S. dollar, the European magazine paper market
will probably improve due to the reduced capacity in North America
and the resulting increased export deliveries. Given the tight market
situation, an increase in the prices of magazine paper should be
possible at the end of the year and at the beginning of next year.
Measures to increase the prices of coated fine paper will continue
during the fourth quarter of the year.
No relief in production input costs is in sight. However, M-real's
profit improvement programmes will cover cost increases in 2007.
M-real will start new profit improvement programmes once the ongoing
ones are completed. The objective of these programmes is to cover at
least the higher production input costs in 2008 and 2009 as well.
Operating profit excluding non-recurring items is expected to weaken
in the fourth quarter compared with the third quarter due to seasonal
factors.
Near-term business risks
Because the forward-looking estimates and statements of this interim
financial report are based on current plans and estimates, they
contain risks and other uncertain factors which may lead the results
to differ from the statements concerning them. In the short term,
M-real's result will be influenced in particular by the price of, and
demand for, finished products, the availability and price of wood,
other raw material costs, the price of energy, and the exchange rate
of the U.S. dollar. More information about longer-term risk factors
can be found on page 25 of M-real's 2006 Annual Report.
M-REAL CORPORATION
Further information:
Seppo Parvi, CFO, tel. +358 10 469 4321
Anne-Mari Achrén, Communications, tel. +358 10 469 4541
BUSINESS AREAS AND MARKET DEVELOPMENT
Consumer Packaging
Q1-Q3 Q1-Q3
Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Sales, MEUR 231 243 235 241 236 709 730 971
EBITDA, MEUR 45 28 39 25 38 112 106 131
excl. non-recurring
items, MEUR 45 33 39 25 38 117 106 131
Operating profit,
MEUR 27 8 21 0 17 56 43 43
excl. non-recurring
items, MEUR 27 15 21 4 17 63 43 47
Return on capital
employed, % 15.3 4.1 10.9 0.3 7.5 10.0 6.6 5.1
excl. non-recurring
items, % 15.3 7.9 10.9 2.1 7.5 11.2 6.6 5.6
Deliveries, 1,000 t 297 313 302 288 285 912 873 1,161
Board deliveries,
1,000 t 303 302 311 279 273 916 842 1,121
EBITDA = Earnings before interest, taxes, depreciation and
amortization
The third quarter compared with the previous quarter
Operating profit excluding non-recurring items of the Consumer
Packaging business area clearly improved from the previous quarter
and stood at EUR 27 million (Q2/07: 15). No non-recurring items were
recognised in the third quarter. EUR 5 million in expense reserves
and EUR 2 million in asset write-downs related to the profit
improvement programme of operations in Finland were recognised as
non-recurring items in the operating profit for the second quarter.
The result was improved by higher production volume of folding
boxboard compared with the previous quarter and implemented cost
savings measures. The result continued to be burdened by the weak
U.S. dollar.
Deliveries by folding boxboard producers in Western Europe remained
at the same level as in the previous quarter. M-real's deliveries of
folding boxboard were down 5 per cent. Due to implemented price
increases the euro-denominated price of folding boxboard remained
unchanged despite the weaker dollar.
Delivery volumes of liner paperboard were 6 per cent lower than in
the second quarter. The euro-denominated selling price remained
unchanged.
January-September compared with the corresponding period in 2006
The business area's operating profit excluding non-recurring items in
January-September totalled EUR 63 million (Q1-Q3/06: 43). Compared to
the previous year, profitability improved mainly due to increased
delivery volumes and cost saving measures. Last year's
January-September result was weakened by the investment shutdown at
the Simpele mill.
The deliveries of Western European folding boxboard manufacturers
increased by 6 per cent year on year. M-real's deliveries were up 8
per cent. The euro-denominated selling price of folding boxboard was
lower than the previous year due to a weaker U.S. dollar.
The linerboard deliveries were 6 per cent higher than last year. The
average euro-denominated price corresponded to that of 2006. The
selling price of wallpaper base has risen significantly.
The carton plants divested in Finland and Hungary, and the Belgian
mill currently for sale, have been reported under "Other operations"
since the beginning of 2007.
Publishing
Q1-Q3 Q1-Q3
Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Sales, MEUR 227 208 212 220 226 647 667 887
EBITDA, MEUR 31 12 21 23 36 64 91 114
excl. non-recurring
items, MEUR 31 15 21 23 36 67 91 114
Operating profit,
MEUR 12 -7 3 3 14 8 27 30
excl. non-recurring
items, MEUR 12 -4 3 3 14 11 27 30
Return on capital
employed, % 5.1 -2.5 1.3 1.4 5.3 1.2 3.4 3.0
excl. non-recurring
items, % 5.1 -1.3 1.3 1.4 5.3 1.6 3.4 3.0
Deliveries, 1,000 t 330 302 303 313 320 935 944 1,258
Production, 1,000 t 324 287 282 283 307 893 884 1,167
EBITDA = Earnings before interest, taxes, depreciation and
amortization
The third quarter compared with the previous quarter
Operating profit excluding non-recurring items of the Publishing
business area in the third quarter was EUR 12 million (Q2/07: -4). No
non-recurring items were recognised in the third quarter. A EUR 3
million expense reserve related to the profit improvement programme
for operations in Finland was recognised in the second-quarter
operating profit.
The result was improved by delivery and production volumes that were
clearly higher than in the previous quarter and by lower fixed costs.
Deliveries by Western European producers of coated magazine paper
were up 9 per cent. The delivery volume of the Publishing business
area increased by about 9 per cent.
January-September compared with the corresponding period in 2006
The Publishing business area's operating profit excluding
non-recurring items in January-September totalled EUR 11 million
(Q1-Q3/06: 27). Operating profit was weakened mainly by higher fibre
costs and a decrease in the average sales price. Operating profit was
improved by the implemented cost saving measures.
Deliveries by Western European producers of coated magazine paper
remained at last year's level. The delivery volume of the Publishing
business area decreased by about 1 per cent.
Commercial Printing
Q1-Q3 Q1-Q3
Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Sales, MEUR 346 339 366 369 361 1,051 1,135 1,504
EBITDA, MEUR 22 19 6 -33 14 47 12 -21
excl. non-recurring
items, MEUR 17 18 20 19 16 55 55 74
Operating profit,
MEUR 3 -5 -17 -179 -10 -19 -63 -242
excl. non-recurring
items,MEUR -4 -6 -3 -6 -8 -13 -20 -26
Return on capital
employed, % 1.3 -1.6 -6.3 -63.3 -3.2 -2.2 -7.0 -21.7
excl. non-recurring
items, % -1.5 -2.0 -0.8 -1.9 -2.6 -1.5 -0.6 -2.2
Deliveries, 1,000 t 430 422 454 464 453 1,306 1,431 1,895
Production, 1,000 t 428 448 457 464 456 1,333 1,459 1,923
EBITDA = Earnings before interest, taxes, depreciation and
amortization
The third quarter compared with the previous quarter
Operating profit of the Commercial Printing business area excluding
non-recurring items was EUR -4 million (Q2/07: -6) in the third
quarter. Operating profit including non-recurring items was EUR 3
million (Q2/07: -5). In the third quarter, a EUR 7 million reduction
in cost provision relating to the closing of the Sittingbourne mill
was recognised as a positive non-recurring item.
The result was improved by about 2 per cent higher delivery volume
and was weakened by fibre costs that continued to rise and the weaker
U.S. dollar.
Deliveries by Western European coated fine paper producers increased
by 3 per cent.
M-real's deliveries of coated fine paper were 2 per cent higher than
in the previous quarter. The average euro-denominated selling price
was down 1 per cent. The euro-denominated selling price of uncoated
fine paper increased by 2 per cent. The average selling price of
speciality papers increased slightly.
January-September compared with the corresponding period in 2006
The business area's operating profit excluding non-recurring items in
January-September totalled EUR -13 million (Q1-Q3/06: -20). Overall
deliveries were some 9 per cent lower year on year due to the closure
of the Sittingbourne mill and the shutdown of the Gohrsmühle
machines, as well as to the divestment of the Pont Sainte Maxence
mill. Comparable delivery volume was about 1 per cent higher than in
the previous year. Profitability was particularly hurt by fibre
expenses, which increased considerably from the previous year, and by
the weaker dollar. Profitability was improved by implemented cost
saving measures and the divestments of unprofitable units.
Deliveries by Western European producers of coated fine paper
increased by 1 per cent. M-real's overall deliveries of coated fine
paper decreased by 9 per cent. This includes the impact of closures
of Sittingbourne mill and shutdown of two Gohrsmühle machines. The
average euro-denominated selling price of coated fine paper was about
1 per cent lower than during the previous year.
Office Papers
Q1-Q3 Q1-Q3
Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Sales, MEUR 167 183 202 189 181 552 538 727
EBITDA, MEUR 21 15 -8 26 15 28 33 59
excl. non-recurring
items, MEUR 21 15 22 26 15 58 43 69
Operating profit,
MEUR 7 1 -22 -4 -1 -14 -14 -18
excl. non-recurring
items, MEUR 7 1 8 11 -1 16 -4 7
Return on capital
employed, MEUR 4.9 0.6 -12.0 -1.9 -0.2 -2.2 -2.3 -2.3
excl. non-recurring
items, % 4.9 0.6 5.0 6.0 -0.2 3.3 -0.6 1.1
Deliveries, 1,000 t 215 241 272 264 258 728 775 1,039
Production, 1,000 t 223 257 280 253 259 760 775 1,028
EBITDA = Earnings before interest, taxes, depreciation and
amortization
The third quarter compared with the previous quarter
Operating profit excluding non-recurring items of the Office Papers
business area in the third quarter was EUR 7 million (Q2/07: 1). No
non-recurring items were recognised in the second and third quarters.
The increase in the average selling price of approximately 2 per cent
had a positive impact on operating profit. The result continued to be
weakened by higher wood costs and the fall of delivery volumes. The
result of the previous quarter was weakened particularly by the
annual maintenance shutdowns at the Alizay and Husum mills.
Overall deliveries by European uncoated fine paper producers were
down by 5 per cent. The delivery volume of the Office Papers business
area decreased by 11 per cent.
January-September compared with the corresponding period in 2006
The business area's operating profit excluding non-recurring items in
January-September totalled EUR 16 million (Q1-Q3/06: -4). In 2006 the
business area reported EUR 10 million cost provision for the Alizay
mill efficiency improvement programme as a non-recurring item.
The result was improved mainly by the increase in the average selling
price of about 9 per cent. The result was weakened by higher raw
material costs, especially wood costs.
Overall deliveries by European uncoated fine paper producers were
down by 1 per cent.
The delivery volume of the Office Papers business area decreased by 6
per cent. This includes the impact of the closure of the Wifsta mill.
Map Merchant Group
Q1-Q3 Q1-Q3
Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Sales, MEUR 351 349 379 377 342 1,079 1,061 1,438
EBITDA, MEUR 7 7 8 5 5 22 22 27
excl. non-recurring
items, MEUR 7 7 11 11 5 25 22 33
Operating profit,
MEUR 6 6 7 -59 3 19 17 -42
excl. non-recurring
items, MEUR 6 6 10 10 3 22 17 27
Return on capital
employed, % 8.3 8.9 11.8 -82.8 4.9 9.7 7.3 -14.2
excl. non-recurring
items, % 8.3 8.9 15.9 14.0 4.9 11.0 7.3 9.4
Deliveries, 1,000 t 340 339 372 367 347 1,052 1,064 1,431
EBITDA = Earnings before interest, taxes, depreciation and
amortization
The third quarter compared with the previous quarter
The third-quarter operating profit of the Map Merchant Group,
excluding non-recurring items, totalled EUR 6 million (Q2/07: 6). The
result was improved by lower fixed costs and weakened by the
decreased sales margin.
January-September compared with the corresponding period in 2006
Operating profit excluding non-recurring items was EUR 22 million
(Q1-Q3/06: 17). The result was improved by the higher average sales
price of office paper.
The interim report is unaudited.
Condensed consolidated
income statement Q1-Q3 Q1-Q3
MEUR 2007 2006 Change 2006 Q2/07 Q3/07
Continuing operations 4,158 4,186 -28 5,624 1,360 1,366
Sales
Other operating income 213 98 115 116 28 30
Operating expenses -3,974 -4,034 60 -5,441 -1,315 -1 273
Depreciation and impairment
losses -253 -275 22 -570 -82 -74
Operating profit 144 -25 169 -271 -9 49
% of sales 3.5 -0.6 -4.8 -0.7 3.6
Share of results in
associated 0 0 0 0 -1 1
companies
Exchange gains and losses -5 4 -9 0 2 -2
Other net financial items -119 -96 -23 -137 -34 -44
Result before taxes 20 -117 137 -408 -42 4
% of sales 0.5 -2.8 -7.3 -3.1 0.3
Income taxes -23 -16 -7 9 -7 -12
Result for the period -3 -133 130 -399 -49 -8
% of sales -0.1 -3.2 -7.1 -3.6 -0.6
Attributable to
Shareholders of parent company -2 -131 129 -396 -49 -7
Minority interest -1 -2 1 -3 0 -1
Earnings per share for result
attributable to shareholders of
parent company (EUR/share) -0.01 -0.40 0.39 -1.21 -0.15 -0.02
Taxes include taxes corresponding to the result for the period under
review.
Condensed consolidated balance sheet
30.9. 30.9. 31.12.
MEUR 2007 % 2006 % 2006 %
Assets
Non-current assets
Goodwill 375 6.6 569 9.0 376 6.1
Other intangible assets 45 0.8 89 1.4 62 1.0
Tangible assets 2,933 51.5 3,185 50.3 3,156 51.1
Biological assets 45 0.8 37 0.6 52 0.8
Shares in associated
and other companies 107 1.9 114 1.8 109 1.8
Interest-bearing receivables 34 0.6 38 0.6 34 0.6
Deferred tax receivables 29 0.5 31 0.5 31 0.5
Other non-interest-bearing
receivables 6 0.1 14 0.2 18 0.3
3,574 62.8 4,077 64.4 3,838 62.2
Current assets
Inventories 714 12.5 741 11.7 676 11.0
Interest bearing receivables 57 1.0 175 2.7 163 2.6
Non-interest-bearing receivables 1,191 20.9 1,246 19.7 1,210 19.6
Cash and cash equivalents 128 2.2 96 1.5 182 2.9
2,090 36.6 2,258 35.6 2,231 36.1
Assets classified as held for sale 33 0.6 103 1.7
Total assets 5,697 100 6,335 100 6,172 100
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity
Equity attributable to
shareholders of parent company 1,812 31.8 2,108 33.3 1,843 29.9
Minority interest 51 0.9 60 1.0 63 1.0
1,863 32.7 2,168 34.3 1,906 30.9
Non-current liabilities
Deferred tax liabilities 265 4.7 331 5.2 284 4.6
Post-employment benefit obligations 190 3.4 205 3.2 199 3.2
Provisions 65 1.1 61 1.0 79 1.3
Other non-interest-bearing
liabilities 39 0.7 49 0.8 28 0.5
Interest-bearing liabilities 2,122 37.2 1,997 31.5 2,182 35.4
2,681 47.1 2,643 41.7 2,772 45.0
Current liabilities
Non-interest-bearing liabilities 860 15.1 811 12.8 865 14.0
Interest-bearing liabilities 281 4.9 713 11.2 599 9.7
1,141 20.0 1,524 24.0 1,464 23.7
Liabilities relating to assets
classified as held for sale 12 0.2 30 0.4
Total liabilities 3,834 67.3 4,167 65.7 4,266 69.1
Total shareholders' equity
and liabilities 5,697 100 6,335 100 6,172 100
Condensed consolidated cash flow statement
Q1-Q3/ Q1-Q3/
MEUR 2007 2006 2006 Q3/07
Result for the period -3 -133 -399 -8
Total adjustments 263 395 701 118
Change in working capital -32 -74 65 -14
Cash flow arising from operations 228 188 367 96
Net financial items -88 -57 -113 -20
Income taxes paid -32 -24 -32 -11
Net cash flow arising from
operating activities 108 107 222 65
Investments in tangible and
intangible assets -178 -305 -428 -66
Divestments of assets and other 280 14 28 5
Net cash flow arising from
investing activities 102 -291 -400 -61
Share issue, minority interest 3 28 31 1
Changes in long-term loans and
other financial items -246 181 259 -49
Dividends paid -20 -39 -39 0
Net cash flow arising from
financing activities -263 170 251 -48
Changes in cash and
cash equivalents -53 -14 73 -44
Cash and cash equivalents at
beginning of period 182 112 112 174
Translation difference in cash and
cash equivalents -1 -2 -2 0
Changes in cash and cash equivalents -53 -14 73 -44
Assets held for sale, folding carton plants 0 0 -1 -2
Cash and cash equivalents
at end of period 128 96 182 128
Statement of changes in shareholders' equity
Fair
value
Trans- and Re- Mi-
Share lation other tained nority
MEUR Share pre- dif- re- earn- inter-
capital mium ference serves ings est Total
Shareholders' equity
31.12.2005, IFRS 558 667 6 0 1 040 45 2,316
Net expenses
recognised
directly in equity
Translation
differences -8 -8
Net investment
hedge,
net of tax
Currency flow hedges
transferred to
income
statement, net of
tax 2 2
recognised in
equity, net of tax 7 7
Interest flow hedges
recognised in
equity,
net of tax 2 2
Commodity hedges
recognised in
equity, net of tax 4 4
Change in
minority interest
Metsä-Botnia
restructuring in
Uruguay 18 18
Result for the
period -131 -2 -133
Total recognised
income
and expenses for the
period -8 15 -131 16 -108
Dividends paid -39 -1 -40
Shareholders' equity
30.9.2006, IFRS 558 667 -2 15 870 60 2,168
Shareholders' equity
1.1.2007, IFRS 558 667 3 10 605 63 1,906
Net expenses recognised
directly in equity
Translation differences -16 -2 -18
Net investment hedge,
net of tax 11 11
Currency flow hedges
transferred to income
statement, net of tax -11 -11
recognised in equity,
net of tax 3 3
Interest flow hedges
transferred to income
statement, net of tax -3 -3
recognised in equity,
net of tax 3 3
Commodity hedges
transferred to income
statement, net of tax 6 6
recognised in equity,
net of tax -2 -2
Change in minority interest
Sale of Metsä-Botnia
shares (9%) -11 -11
Metsä-Botnia
restructuring in Uruguay 3 3
Result for the period -2 -1 -3
Total recognised income
and expenses for period -5 -4 -2 -11 -22
Dividends paid -20 -1 -21
Shareholders' equity
30.9.2007, IFRS 558 667 -2 6 583 51 1,863
Q1-Q3 Q1-Q3
Key ratios 2007 2006 2006 Q3/07
Sales, MEUR 4,158 4,186 5,624 1,366
EBITDA, MEUR 397 251 299 123
excl. non-recurring items, MEUR 314 307 411 118
Operating profit, MEUR 144 -25 -271 49
excl. non-recurring items, MEUR 77 31 45 42
Result before taxes, MEUR 20 -117 -408 4
excl. non-recurring items, MEUR -47 -61 -92 -3
Result for the period, MEUR -3 -133 -399 -8
Earnings per share, EUR -0.01 -0.40 -1.21 -0.02
excl. non-recurring items, EUR -0.25 -0.23 -0.27 -0.04
from continuing operations, EUR -0.01 -0.40 -1.21 -0.02
from discontinued operations, EUR 0.00 0.00 0.00 0.00
Return on equity, % -0.2 -7.9 -18.9 -1.6
excl. non-recurring items, % -5.8 -4.7 -4.4 -3.1
Return on capital employed, % 4.6 -0.2 -5.2 4.6
excl. non-recurring items, % 2.6 1.4 1.4 3.9
Equity ratio at end of period, % 32.7 34.3 30.9 32.7
Gearing at end of period, % 117 111 126 117
Shareholders' equity per share
at end of period, EUR 5.52 6.42 5.62 5.52
Net interest-bearing liabilities
at end of period, MEUR 2,187 2,402 2,403 2,187
Gross capital expenditure, MEUR 178 305 428 66
Board deliveries, 1,000 t 912 873 1,161 297
Paper deliveries, 1,000 t 2,969 3,151 4,192 975
Personnel at end of period 12,449 14,509 14,125 12,449
EBITDA = Earnings before interest, taxes, depreciation and
amortization
Securities and guarantees, MEUR Q3/07 Q3/06 2006
For own liabilities 60 71 77
On behalf of associated companies 1 1 1
On behalf of Group companies 4 5 5
On behalf of others 3 10 3
Total 68 87 86
Open derivative contracts, MEUR Q3/07 Q3/06 2006
Interest rate derivatives 2,062 3,493 2,828
Foreign exchange derivatives 3,524 3,658 4,747
Other derivatives 182 148 152
Total 5,768 7,299 7,727
The fair value of open derivative contracts calculated at market
value was EUR 14.4 million at the end of the review period (31
December 2006: EUR -8.3 million and EUR 5.2 million 30 September
2006).
The gross amount of open contracts also includes closed contracts,
totalling EUR 2,020.1 million (31 December 2006: EUR 3,664.0 million
and EUR 3,253.9 million 30 September 2006).
Q1-Q3 Q1-Q3
Commitments related to fixed assets, MEUR 2007 2006 2006
Payments in less than a year 35 29 146
Payments later 4 128 16
Changes in property, Q1-Q3 Q1-Q3
plant and equipment, MEUR 2007 2006 2006
Carrying value at beginning of period 3,156 3,178 3,178
Capital expenditure 177 317 456
Decrease -153 -71 -82
Assets classified as held for sale 0 -28
Depreciation and impairment losses -225 -249 -385
Translation difference -22 10 17
Carrying value at end of period 2,933 3,185 3,156
Q1-Q3 Q1-Q3
Related-party transactions, MEUR 2007 2006 2006
Transactions with parent company and sister
companies
Sales 26 25 35
Other operating income 137 2 3
Purchases 400 374 491
Interest income 3 5 7
Interest expenses 6 10 13
Non-current receivables 20 23 21
Current receivables 61 185 183
Non-current liabilities 1 1 1
Current liabilities 45 45 362
Business transactions
with associated companies
Sales 0 0 0
Purchases 3 3 4
Non-current receivables 7 7 7
Current receivables 1 0 3
Current liabilities 2 1 3
Accounting policies
The interim report was prepared in accordance with the IAS 34
standard Interim Financial Reporting and the accounting policies
presented in M-real Annual Report 2006.
Taxes include taxes corresponding to the result for the period under
review.
New and changed standards
IFRS 7 Financial instruments: Disclosures and a complementary
amendment to IAS 1 Presentation of Financial Statements - Capital
Disclosures, effective for annual periods beginning on or after 1
January 2007. IFRS 7 introduces new disclosure to improve the
information about the financial instruments in the notes to the
financial statements, but has no effect on classification or
valuation of the financial instruments.
Calculation of key ratios
Return on equity (%) = (Profit from continuing operations before
tax - direct taxes) per
(Total equity (average))
Return on capital = (Profit from continuing operations before
employed (%) tax + interest expenses, net
exchange gains/losses and other financial
expenses) per
(Total assets - non-interest-bearing
liabilities (average))
Equity ratio (%) = (Total equity) per
(Total assets - advance payments received)
Gearing ratio (%) = (Interest-bearing liabilities - liquid
funds - interest-bearing receivables) per
(Total equity)
Earnings per share = (Profit attributable to shareholders of
parent company) per
(Adjusted number of shares (average))
Shareholders' equity per = (Equity attributable to shareholders of
share parent company) per
(Adjusted number of shares at end of
review period)
Quarterly information
Sales and result Q1-Q3 Q1-Q3
by segment, MEUR Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Consumer Packaging 231 243 235 241 236 709 730 971
Publishing 227 208 212 220 226 647 667 887
Commercial Printing 346 339 366 369 361 1,051 1,135 1,504
Office Papers 167 183 202 189 181 552 538 727
Map Merchant Group 351 349 379 377 342 1 079 1,061 1,438
Internal sales and
other operations 44 38 38 42 21 120 55 97
Sales 1,366 1,360 1,432 1,438 1,367 4,158 4,186 5,624
Consumer Packaging 45 28 39 25 38 112 106 131
Publishing 31 12 21 23 36 64 91 114
Commercial Printing 22 19 6 -33 14 47 12 -21
Office Papers 21 15 -8 26 15 28 33 59
Map Merchant Group 7 7 8 5 5 22 22 27
Other operations -3 -8 135 2 -2 124 -13 -11
EBITDA 123 73 201 48 106 397 251 299
% of sales 9.0 5.4 14.0 3.3 7.8 9.5 6.0 5,3
Consumer Packaging 27 8 21 0 17 56 43 43
Publishing 12 -7 3 3 14 8 27 30
Commercial Printing 3 -5 -17 -179 -10 -19 -63 -242
Office Papers 7 1 -22 -4 -1 -14 -14 -18
Map Merchant Group 6 6 7 -59 3 19 17 -42
Other operations -6 -12 112 -7 -8 94 -35 -42
Operating profit 49 -9 104 -246 15 144 -25 -271
% of sales 3.6 -0.7 7.3 -17.1 1.1 3.5 -0.6 -4.8
Share of results in
associated companies 1 -1 0 0 1 0 0 0
Exchange gains and
losses -2 2 -5 -4 -1 -5 4 0
Other net financial
items -44 -34 -41 -41 -37 -119 -96 -137
Result from
continuing
operations before tax 4 -42 58 -291 -22 20 -117 -408
Income taxes -12 -7 -4 25 -11 -23 -16 9
Result for the period
from continuing
operations -8 -49 54 -266 -33 -3 -133 -399
Result for period
from
discontinued
operations 0 0 0 0 0 0 0 0
Result for the period -8 -49 54 -266 -33 -3 -133 -399
Minority interest 1 0 0 1 2 1 2 3
Financial result
attributable to
shareholders of
parent company -7 -49 54 -265 -31 -2 -131 -396
Earnings per share,
EUR -0.02 -0.15 0.16 -0.81 -0.10 -0.01 -0.40 -1.21
Non-recurring items, Q1-Q3 Q1-Q3
MEUR Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Consumer Packaging 0 -7 0 -4 0 -7 0 -4
Publishing 0 -3 0 0 0 -3 0 0
Commercial Printing 7 1 -14 -173 -2 -6 -43 -216
Office Papers 0 0 -30 -15 0 -30 -10 -25
Map Merchant Group 0 0 -3 -69 0 -3 0 -69
Other operations 0 -4 120 1 0 116 -3 -2
Non-recurring items
in operating result 7 -13 73 -260 -2 67 -56 -316
Non-recurring items
in
financial items 0 0 0 0 0 0 0 0
Non-recurring items
total 7 -13 73 -260 -2 67 -56 -316
Consumer Packaging 45 33 39 25 38 117 106 131
Publishing 31 15 21 23 36 67 91 114
Commercial Printing 17 18 20 19 16 55 55 74
Office Papers 21 15 22 26 15 58 43 69
Map Merchant Group 7 7 11 11 5 25 22 33
Other operations -3 -4 -1 1 -2 -8 -10 -11
EBITDA, excl. non-
recurring items 118 84 112 105 108 314 307 411
% of sales 8.6 6.2 7.8 7.3 7.9 7.6 7.3 7.3
Consumer Packaging 27 15 21 4 17 63 43 47
Publishing 12 -4 3 3 14 11 27 30
Commercial Printing -4 -6 -3 -6 -8 -13 -20 -26
Office Papers 7 1 8 11 -1 16 -4 7
Map Merchant Group 6 6 10 10 3 22 17 27
Other operations -6 -8 -8 -8 -8 -22 -32 -40
Operating profit
excl.
non-recurring items 42 4 31 14 17 77 31 45
% of sales 3.1 0.3 2.2 1.0 1.2 1.9 0.7 0.8
Result before taxes,
excl. non-recurring
items -3 -29 -15 -31 -20 -47 -61 -92
% of sales -0.2 -2.1 -1.0 -2.2 -1.5 -1.1 -1.5 -1.6
Result per share,
excl.
non-recurring items,
EUR -0.04 -0.13 -0.08 -0.04 -0.08 -0.25 -0.23 -0.27
Return on equity,
excl.
non-recurring items,
% -3.1 -8.8 -5.4 -2.6 -5.8 -5.8 -4.7 -4.4
Return on capital
employed, excl. non-
recurring items, % 3.9 0.7 3.2 1.5 2.0 2.6 1.4 1.4
Q1-Q3
Return on capital 2007 Q1-Q3
employed, % Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2006 2006
Consumer Packaging 15.3 4.1 10.9 0.3 7.5 10.0 6.6 5.1
Publishing 5.1 -2.5 1.3 1.4 5.3 1.2 3.4 3.0
Commercial Printing 1.3 -1.6 -6.3 -63.3 -3.2 -2.2 -7.0 -21.7
Office Papers 4.9 0.6 -12.0 -1.9 -0.2 -2.2 -2.3 -2.3
Map Merchant Group 8.3 8.9 11.8 -82.8 4.9 9.7 7.3 -14.2
Total 4.6 -0.5 9.6 -20.3 1.8 4.6 -0.2 -5.2
Capital employed, MEUR Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Q1/06
Consumer Packaging 742 741 777 809 914 907 917
Publishing 1,002 995 1,020 1,069 1,091 1,094 1,124
Commercial Printing 1,044 1,047 1,057 1,040 1,208 1,243 1,273
Office Papers 681 665 669 722 742 746 754
Map Merchant Group 286 276 264 257 313 318 323
Other equity 514 604 583 797 609 578 514
Total 4,269 4,328 4,371 4,694 4,877 4,886 4,904
The capital employed for a segment included its assets: goodwill,
other intangible goods, tangible assets, biological assets,
investments in associates, inventories, accounts receivables,
prepayments and accrued income (excluding interest and taxes), less
the segment's liabilities (accounts payable, advance payments,
accruals and deferred income (excluding interest and taxes).
+------------------------------------------------+
| | Q1-Q3 | Q1-Q3 | |
| Personnel, average | 2007 | 2006 | 2006 |
|---------------------+--------+--------+--------|
| Consumer Packaging | 1,557 | 2,632 | 2,573 |
|---------------------+--------+--------+--------|
| Publishing | 1,338 | 1,470 | 1,437 |
|---------------------+--------+--------+--------|
| Commercial Printing | 3,871 | 4,499 | 4,425 |
|---------------------+--------+--------+--------|
| Office Papers | 1,695 | 1,846 | 1,822 |
|---------------------+--------+--------+--------|
| Map Merchant Group | 2,410 | 2,494 | 2,481 |
|---------------------+--------+--------+--------|
| Other operations | 2,499 | 2,144 | 2,146 |
|---------------------+--------+--------+--------|
| Total | 13,370 | 15,085 | 14,884 |
+------------------------------------------------+
Q1-Q3 Q1-Q3
Deliveries, 1,000 t Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 2007 2006 2006
Consumer Packaging 297 313 302 288 285 912 873 1,161
Publishing 330 302 303 313 320 935 944 1,258
Commercial Printing 430 422 454 464 453 1,306 1,431 1,895
Office Papers 215 241 272 264 258 728 775 1,039
Paper segments,
total 975 965 1,029 1,041 1,031 2,969 3,151 4,192
Map Merchant Group 340 339 372 367 347 1,052 1,064 1,431
+------------------------------------------------------------------------------+
|Production, | | | | | | Q1-Q3| Q1-Q3| |
|1,000 t |Q3/07 |Q2/07 |Q1/07 |Q4/06 |Q3/06 | 2007| 2006| 2006|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Consumer | | | | | | | | |
|Packaging | 303| 302| 311| 279| 273| 916| 842| 1,121|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Publishing | 324| 287| 282| 283| 307| 893| 884| 1,167|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Commercial | | | | | | | | |
|Printing | 428| 448| 457| 464| 456| 1,333| 1,459| 1,923|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Office Papers | 223| 257| 280| 253| 259| 760| 775| 1,028|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Paper mills, | | | | | | | | |
|total | 975| 992| 1,019| 1,000| 1,023| 2,986| 3,119| 4,119|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|Metsä-Botnia | | | | | | | | |
|pulp 1) | 203| 200| 203| 255| 243| 607| 728| 983|
|--------------+-------+-------+-------+-------+-------+-------+-------+-------|
|M-real pulp | 455| 398| 426| 449| 443| 1,279| 1,305| 1,754|
+------------------------------------------------------------------------------+
1) corresponds to M-real's share in Metsä-Botnia (39 % until Q4/06,
30 % as of Q1/07).
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