2013-08-01 11:00:00 CEST
2013-08-01 11:00:02 CEST
REGULATED INFORMATION
Metsä Board Oyj - Interim report (Q1 and Q3)
Metsä Board Corporation’s operating result excluding non-recurring items was EUR 56.2 million in the first half of 2013
Metsä Board Corporation Interim Report 1 January - 30 June 2013, 1 August 2013
at 12:00 noon
Result for the first half of 2013
-- Sales were EUR 1,037.8 million (Q1-Q2/2012: 1,066.8).
-- The operating result excluding non-recurring items was EUR 56.2 million
(25.9). The operating result including non-recurring items was EUR 63.7
million (158.4).
-- The result before taxes excluding non-recurring items was EUR 22.4 million
(8.4). The result before taxes including non-recurring items was EUR 29.8
million (140.9).
-- Earnings per share excluding non-recurring items were EUR 0.06 (0.02) and
including non-recurring items EUR 0.08 (0.38).
Result for the second quarter of 2013
-- Sales were EUR 502.8 million (Q1/2013: 535.0).
-- The operating result excluding non-recurring items was EUR 26.0 million
(30.2). The operating result including non-recurring items was EUR 28.9
million (34.8).
-- The result before taxes excluding non-recurring items was EUR 18.5 million
(3.9). The result before taxes including non-recurring items was EUR 21.3
million (8.5).
-- Earnings per share excluding non-recurring items were EUR 0.05 (0.01) and
including non-recurring items EUR 0.06 (0.02).
Events in the second quarter of 2013
-- Delivery volumes of folding boxboard continued to increase slightly and
market prices were stable.
-- Demand for white-top kraftliner continued to be very strong, and average
prices increased a little as a result of the price increase implemented in
the spring.
-- The delivery volumes of uncoated fine paper and coated papers weakened from
the previous quarter, mainly due to seasonal reasons. The price of uncoated
fine paper increased slightly, but the decline in the price of coated paper
continued.
-- Pulp prices increased moderately.
-- The production of lightweight fully-bleached kraftliners began in Husum.
“Our profitability in the second quarter was at the previous quarter's level.
The positive development of our paperboard operations continued. Deliveries of
folding boxboard continued to increase, and deliveries of kraftliners remained
at a very good level. The white-top kraftliner price increase was carried out
successfully.
In order to grow our kraftliner business, the production of lightweight
fully-bleached kraftliners began at the Husum mill in Sweden in April. This
year, we will move some of the uncoated grade volumes from the Kemi kraftliner
mill, operating at full capacity, to Husum. We are also investigating how to
further strengthen the competitiveness of our folding boxboard business in the
future.
The situation in the paper market in Europe continues to be difficult,
particularly in coated papers. The new kraftliner production at Husum will
replace the mill's least profitable coated paper production volumes. This,
together with the ongoing cost savings programme, is expected to improve the
Husum mill's profitability.
The market situation of our main products is estimated to continue to be stable
in the third quarter of 2013, although uncertainty in the general economy is
continuing. Nevertheless, our result development in the third quarter will be
affected negatively by the extensive maintenance shutdowns in accordance with
the annual plan at the Husum and Kemi integrated mills.”
Mikko Helander, CEO
Adoption of the amended IAS19 standard
Metsä Board adopted the amended IAS 19 Employee Benefits standard retroactively
on 1 January 2013. The most significant changes were the following: all
actuarial profits and losses are recognised immediately, and the financial cost
of retirement plans is determined on the basis of net funding.
The Group's equity decreased by approximately EUR 10.6 million due to the
amendment on 31 December 2012. The 2012 operating result improved by EUR 1.4
million and financial expenses increased by EUR 3.2 million.
The impact on the balance sheet and the statement of comprehensive income is
discussed in greater detail in the Notes (Note 1).
The amended key figures are presented in the Key Figures table (Key Figures,
restate).
KEY FIGURES, restate 2013 2013 2012 2012 2013 2012 2012
Q2 Q1 Q2 Q1 Q1-Q2 Q1-Q2 Q1-Q4
---------------------------------------------------
Sales, EUR million 502.8 535.0 522.2 544.6 1,037. 1,066. 2,107.
8 8 6
--------------------------------------------------------------------------------
EBITDA, EUR million 52.7 61.4 189.9 25.7 114.1 215.6 321.4
excl. non-recurring items, 52.1 56.8 47.8 35.2 108.9 83.0 186.0
EUR million
EBITDA, % 10.5 11.5 36.4 4.7 11.0 20.2 15.3
excl. non-recurring items, % 10.4 10.6 9.2 6.5 10.5 7.8 8.8
--------------------------------------------------------------------------------
Operating result, EUR 28.9 34.8 162.0 -3.6 63.7 158.4 221.1
million
excl. non-recurring items, 26.0 30.2 19.8 6.1 56.2 25.9 74.9
EUR million
EBIT, % 5.7 6.5 31.0 -0.7 6.1 14.8 10.5
excl. non-recurring items, % 5.2 5.6 3.8 1.1 5.4 2.4 3.6
--------------------------------------------------------------------------------
Result before taxes, EUR 21.3 8.5 159.4 -18.5 29.8 140.9 173.9
million
excl. non-recurring items, 18.5 3.9 17.2 -8.8 22.4 8.4 27.7
EUR million
--------------------------------------------------------------------------------
Result for the period, EUR 17.6 8.0 140.6 -15.4 25.6 125.2 171.3
million
excl. non-recurring items, 15.3 3.4 14.0 -5.7 18.7 8.3 42.4
EUR million
--------------------------------------------------------------------------------
Result per share, EUR 0.06 0.02 0.43 -0.05 0.08 0.38 0.52
excl. non-recurring items, 0.05 0.01 0.04 -0.02 0.06 0.02 0.13
EUR
--------------------------------------------------------------------------------
Return on equity, % 8.5 3.8 72.8 -8.4 6.1 32.3 21.5
excl. non-recurring items, % 7.4 1.6 7.3 -3.1 4.5 2.1 5.3
--------------------------------------------------------------------------------
Return on capital employed, 6.7 7.7 35.1 -0.2 7.1 17.5 12.4
%
excl. non-recurring items, % 6.1 6.8 5.1 1.9 6.3 3.6 4.8
--------------------------------------------------------------------------------
Equity ratio at end of 32.4 33.3 31.1 27.9 32.4 31.1 33.2
period, %
Gearing ratio at end of 130 122 138 153 130 138 130
period, %
Net gearing ratio at end of 74 69 73 103 74 73 73
period, %
Shareholders' equity per 2.48 2.54 2.46 2.22 2.48 2.46 2.59
share at end of period, EUR
Interest-bearing net 605.9 577.6 595.4 758.5 605.9 595.4 625.2
liabilities, EUR million
Gross investments, EUR 21.5 9.2 17.5 9.7 30.7 27.2 66.1
million
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paperboard 311 311 289 295 622 584 1,188
Paper 158 186 165 185 344 350 681
--------------------------------------------------------------------------------
Personnel at the end of 3,401 3,239 3,597 3,818 3,401 3,597 3,279
period
Deliveries are not
comparable due to
restructuring.
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
Near-term outlook
The delivery volumes of folding boxboard are estimated to be approximately at
the previous quarter's level in the third quarter of 2013. Final decision on
the possible folding boxboard price increase during the coming months has not
yet been taken.
Demand for white-top kraftliner is expected to continue to be very strong, and
delivery volumes are estimated to increase slightly in the third quarter of
2013, taking into account also the increasing sales volumes of fully-bleached
kraftliner at Husum. The average price level of white-top kraftliner is
estimated to be approximately at the previous quarter's level in the third
quarter.
Delivery volumes of uncoated fine paper and coated paper are expected to be
approximately at the previous quarter's level in the third quarter of 2013. No
significant changes in the price of uncoated fine paper or coated paper are in
sight.
Delivery volumes of market pulp are estimated to be at the previous quarter's
level. The average price of pulp is not estimated to change materially in the
third quarter.
Production costs in the third quarter of 2013 are expected to be approximately
at the same level as in the previous quarter.
Extensive maintenance shutdowns in accordance with the annual plan will be
carried out at the Husum and Kemi integrated mills in the third quarter of
2013.
Metsä Board's operating result, excluding non-recurring items, is in the third
quarter of 2013 expected to be weaker than in the second quarter of 2013
primarily due to the maintenance shutdowns at Husum and Kemi mills.
Disclosure procedure
Metsä Board Corporation 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 2013 enclosed to this stock
exchange release. Metsä Board's complete Interim Report is attached to this
release in pdf-format and is also available on the company's web site at
www.metsaboard.com.
METSÄ BOARD CORPORATION
Further information:
Matti Mörsky, CFO, tel. +358 (0)10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358
(0)10 465 4335
More information will be available starting from 1 p.m. on 1 August 2013. A
conference call held in English for investors and analysts starts at 3 p.m.
(EET). Conference call participants are requested to dial in and register a few
minutes prior to the start of the conference call on the following numbers:
Europe: +44 (0)20 7162 0025
US: +1 334 323 6201
The conference ID is 933422.
Metsä Board is Europe's leading producer of folding boxboard, the world's
leading manufacturer of coated white-top kraftliners, and a major paper
supplier. It offers premium solutions for consumer and retail packaging,
graphics and office end-uses. The company's sales network serves brand owners,
carton printers, corrugated packaging manufacturers, printers, merchants and
office suppliers. Metsä Board is part of Metsä Group and its shares are listed
in NASDAQ OMX Helsinki.In 2012, the company's sales totalled approximately EUR
2.1 billion. The company has approximately 3,300 employees.
www.metsaboard.com
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