2016-11-02 11:00:01 CET
2016-11-02 11:00:01 CET
REGULATED INFORMATION
Metsä Board Oyj - Interim report (Q1 and Q3)
Metsä Board's comparable operating result in January–September 2016 was EUR 104.7 million
Metsä Board Corporation Interim report 1 January–30 September 2016 2 November
2016 at 12:00 EET
January–September 2016 (1–9/2015)
• Sales amounted to EUR 1,298.5 million (1,545.3).
• Comparable operating result was EUR 104.7 million (144.8), or 8.1 per cent of
sales. Operating result was EUR 93.8 million (164.9).
• Comparable result before taxes was EUR 84.0 million (119.8). Result before
taxes was EUR 73.0 million (137.7).
• Comparable earnings per share were EUR 0.21 (0.27), and earnings per share
were EUR 0.18 (0.32).
July–September 2016 (4–6/2016)
• Sales amounted to EUR 440.0 million (422.9).
• Comparable operating result was EUR 34.0 million (35.8), or 7.7 per cent
(8.5) of sales. Operating result was EUR 26.6 million (34.5).
• Comparable result before taxes was EUR 27.1 million (26.8). Result before
taxes was EUR 19.8 million (25.5).
• Comparable earnings per share were EUR 0.07 (0.07), and earnings per share
were EUR 0.05 (0.06).
Events in July–September 2016
• The production volumes of Husum's new folding boxboard machine grew steadily.
• Metsä Board's production of uncoated fine paper ended in July.
• The wallpaper base machine PM3 at the Kyro mill was closed down in September.
Events after the review period
• Metsä Board was identified as a global leader for its actions and strategies
in response to climate change. CDP (formerly Carbon Disclosure Project) awarded
Metsä Board a position on the Climate A List. Metsä Board was among the 9% of
corporations participating in programme to be awarded a position on the list.
Profit guidance for October–December 2016
Metsä Board's comparable operating result for the fourth quarter of 2016 is
expected to remain roughly on the same level as in the third quarter of 2016.
Mika Joukio, CEO:
“Comparable operating result for the third quarter remained on the same level
as in the previous quarter, as we expected. Our result continued to be burdened
by the lower price level of the start-up volumes of Husum's new folding
boxboard. In addition, a leak in the pulp mill's recovery boiler and the
production-related challenges of the new folding boxboard machine in the second
quarter slowed down our customer deliveries especially to North America. The
production and delivery volumes of Husum's new folding boxboard have increased
steadily since the summer, and the average price of the order inflow is already
at a good level. Due to the long lead time, the profit impact of the improved
average price will nevertheless be visible with a delay of approximately three
months. The profit development of our Finnish mills was positive. The decrease
in working capital turned our cash flow from operations clearly positive.
During the review period, we produced our last fine paper reels and announced
to discontinue the loss-making wallpaper business. In the future, we will focus
on premium fresh fibre paperboard used in consumer goods and retail-ready
packaging, in line with our strategy.
After the review period, we were identified by CDP as a global leader for our
actions and strategies in response to climate change. The importance of
responsibility and its assessment is gaining increased prominence in our
customer relationships, and improves our competitiveness. I am also very proud
of the recognition our premium products received at the Pro Carton ECMA Awards,
in which Metsä Board's fresh fibre paperboard was used in three prize-winning
paperboard packages.
Metsä Board's future looks bright. Husum's new folding boxboard machine’s
capacity is approaching the targeted nominal capacity, which enables us to
better meet increasing demand in our main market areas. Next year, we will also
have our own extrusion coating line, which will expand the range of paperboard
suitable for food and food service packaging. We can look forward to a busy
year in 2017, but we have every chance of achieving our long-term growth and
profitability targets.”
FINANCIAL KEY FIGURES
2016 2016 2016 2015 2016 2015 2015
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Q3 Q2 Q1 Q3 Q1–Q3 Q1–Q3 Q1–Q4
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Sales, EUR million 440.0 422.9 435.6 497.6 1,298.5 1,545.3 2,007.5
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EBITDA, EUR million 60.6 59.6 55.5 80.8 175.7 243.4 302.5
comparable, EUR million 59.4 60.7 57.8 80.8 178.0 223.6 283.3
EBITDA, % of sales 13.8 14.1 12.7 16.2 13.5 15.8 15.1
comparable, % of sales 13.5 14.4 13.3 16.2 13.7 14.5 14.1
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Operating result, EUR 26.6 34.5 32.7 54.6 93.8 164.9 199.0
million
comparable, EUR million 34.0 35.8 35.0 54.6 104.7 144.8 179.9
Operating result, % of 6.0 8.2 7.5 11.0 7.2 10.7 9.9
sales
comparable, % of sales 7.7 8.5 8.0 11.0 8.1 9.4 9.0
--------------------------------------------------------------------------------
Result before taxes, EUR 19.8 25.5 27.7 47.5 73.0 137.7 167.1
million
comparable, EUR million 27.1 26.8 30.0 47.5 84.0 119.8 150.2
--------------------------------------------------------------------------------
Result for the period, 18.6 23.2 23.9 26.8 65.7 110.8 137.3
EUR million
comparable, EUR million 24.1 24.6 25.7 26.4 74.4 92.7 120.2
--------------------------------------------------------------------------------
Result per share, EUR 0.05 0.06 0.07 0.08 0.18 0.32 0.39
comparable, EUR million 0.07 0.07 0.07 0.08 0.21 0.27 0.34
--------------------------------------------------------------------------------
Return on equity, % 7.4 9.4 9.5 10.6 8.6 15.9 14.7
comparable, % 9.6 9.9 10.2 10.4 9.8 13.3 12.9
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Return on capital 6.3 8.2 7.8 13.0 7.4 13.8 12.5
employed, %
comparable, % 8.0 8.5 8.3 13.0 8.3 12.1 11.3
--------------------------------------------------------------------------------
Equity ratio at end of 48 47 44 46 48 46 46
period, %
Net gearing ratio at end 49 54 42 34 49 34 32
of period, %
Interest-bearing net 2.1 2.1 1.5 1.2 2.1 1.2 1.2
liabilities/EBITDA1)
Shareholders' equity per 2.82 2.81 2.77 2.86 2.82 2.86 2.89
share at end of period,
EUR
Interest-bearing net 487.6 541.4 412.3 344.2 487.6 344.2 333.4
liabilities, EUR million
Gross investments, EUR 16.4 48.3 54.3 44.8 119.0 117.0 177.8
million
Net cash flow from 67.0 -22.2 -22.3 92.5 22.5 180.8 246.7
operating activities,
EUR million
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Personnel at the end of 2,493 2,762 2,573 2,642 2,493 2,642 2,601
period
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1) Ratio of end of period interest-bearing net liabilities to 12-month rolling
comparable EBITDA
Near-term outlook
Metsä Board’s paperboard deliveries in October–December are expected to remain
on the same level as in the previous quarter due to the seasonally weaker
December. The increase in the average price for folding boxboard is supported
by smaller share of Husum's start-up deliveries out of total total deliveries.
The average price for Husum's folding boxboard orders received in
September–October has been at a good level. Due to the long lead time, the
profit impact of the improved average price will recognise with a delay of
approximately three months.
The result of the fourth quarter will be weakened by the annual maintenance
shutdown of the Husum integrated mill, which was extended by approximately a
week due to the problems discovered in the pulp mill's recovery boiler.
Full production capacity of the new folding boxboard machine at Husum is
expected to be reached by the end of 2016.
Total production costs in October–December are expected to remain at
approximately the level of the third quarter of 2016.
The estimate concerning the total gross investment in 2016 increased to EUR 165
million from the earlier EUR 135 million. The change was mainly due to cost
overruns in the investment at Husum and the cost allocation between years of
extrusion coating line.
Demand for premium fresh fibre paperboards is expected to remain good in both
Europe and the Americas. The increased capacity of European folding box-board
producers has not had a negative effect on the demand for and prices of Metsä
Board's products. The market prices of folding boxboard and white fresh fibre
linerboards are expected to remain fairly stable or increase slightly. The
global demand and supply for long-fibre and short-fibre pulp is expected to
remain stable.
METSÄ BOARD CORPORATION
Further information:
Jussi Noponen, CFO, tel. +358 (0)10 465 4913
Katri Sundström, Head of Investor Relations, tel. +358 (0)400 976 333
More information will be available as of 1 p.m. on 2 November 2016. A
conference call held for investors and analysts in English will begin at 3 p.m.
Conference call participants are requested to dial in and register a few
minutes earlier on the following numbers:
Finland +358 (0)9 7479 0361
Sweden +46 (0)8 5033 6574
United Kingdom +44 (0)203 043 2003
United States +1 719-457-2086
The conference ID is 8298586.
www.metsaboard.com
Metsä Board is a leading European producer of folding boxboards and white
linerboards made from fresh fibres. Its lightweight paperboards are developed
as the perfect fit for consumer goods, retail-ready and food service packaging.
The pure fresh fibres Metsä Board uses are a renewable resource, traceable to
origin in northern forests.
The global sales network of Metsä Board supports customers worldwide, including
brand owners, converters and merchants. In 2015, the company’s sales totalled
EUR 2.0 billion, and it has approximately 2,600 employees. Metsä Board, part of
Metsä Group, is listed on the Nasdaq Helsinki.
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