2016-05-03 11:00:01 CEST
2016-05-03 11:00:01 CEST
REGULATED INFORMATION
This message has been corrected. Click here to view the corrected message
Metsä Board Oyj - Interim report (Q1 and Q3)
Metsä Board Corporation’s operating result excluding non-recurring items was EUR 35 million in January–March 2016
Metsä Board Corporation Interim Report 1 January–31 March 2016 3 May 2016 at
12:00 EET
January–March 2016 (1–3/2015)
• Sales amounted to EUR 435.6 million (525.7).
• Operating result excluding non-recurring items was EUR 35.0 million (43.2),
or 8.0 per cent of sales. Operating result including non-recurring items was
EUR 32.7 million (43.1).
• Result before taxes excluding non-recurring items was EUR 30.0 million
(32.3). Result before taxes including non-recurring items was EUR 27.7 million
(32.2).
• Earnings per share excluding non-recurring items were EUR 0.07 (0.09), and
earnings per share including non-recurring items were EUR 0.07 (0.09).
Events in January–March 2016
•The demand for paperboards remained at a good level in Europe and the
Americas. Price levels were stable.
• The new folding boxboard production line at Husum in Sweden started up in
February, slightly behind the original schedule. The company will market the
production line’s annual volume of 400,000 tonnes to the Americas and for food
service packaging, such as cups, plates and trays, globally.
• Standard & Poor’s Ratings Services raised Metsä Board Corporation's credit
rating by one notch from BB to BB+. The rating outlook was raised from stable
to positive.
• Metsä Board’s Annual General Meeting was held at Finlandia Hall on 23 March
2016. AGM decided to distribute a dividend of EUR 0.17 per share for the 2015
financial period. The dividend payment date was 5 April 2016.
Events after the review period
• Metsä Board announced it would increase the price of white fresh forest fibre
linerboard by EUR 50 per tonne in Europe. The price increase will take effect
on 16 May 2016.
• Metsä Board announced to initiate efficiency improvement programme in Husum
integrate in Sweden. The efficiency improvement programme targets minimum of
EUR 10 million annual cost savings.
Profit guidance for April–June 2016
Metsä Board’s operating result excluding non-recurring items in the second
quarter of 2016 is expected to remain roughly on the same level as in the first
quarter of 2016.
Mika Joukio, CEO:
“The result for January–March was at the same level as in the last quarter. Our
result was weakened, as expected, by the start-up of the new folding boxboard
production line at Husum in Sweden, which is why the production volumes of pulp
and paperboard there were low. We expect these factors to have an impact still
on the second quarter result, and we keep our guidance the same as in the
previous quarter.
Total paperboard deliveries increased from the previous quarter, and the price
levels remained stable. In Finland, our paperboard mills were operating at full
speed. The demand for lightweight and ecological folding boxboard remained
strong in Europe and the Americas.
Exit from the unprofitable paper business reduced our sales considerably in the
review period. We estimate that the remaining fine paper production will end
completely this year. Our sales are expected to return to a growth path in the
next quarter, as our paperboard deliveries will increase along with the new
capacity. Our cash flow was weakened by the investment programme at Husum and
the changes in working capital. Despite the increase in interest-bearing net
debt, our balance sheet remained strong.
The required quality targets for the new folding boxboard at Husum have already
been met, and the production volumes are increasing. The first paperboard
deliveries to the United States have arrived. Our target is to sell
approximately 200,000 tonnes of the new folding boxboard primarily to the
Americas and for food service packaging globally in 2016.
After the review period we announced to launch efficiency improvement programme
at Husum integrate. We target at least EUR 10 million annual cost savings by
harmonising operating methods and eliminating overlaps at the integrate. We
expect the impacts to be evident already this year.”
KEY FIGURES
2016 2015 2015 2015 2015 2015
Q1 Q4 Q3 Q2 Q1 Q1–Q4
-------------------------------------------
Sales, EUR million 435.6 462.2 497.6 522.0 525.7 2 007.5
--------------------------------------------------------------------------------
EBITDA, EUR million 55.5 59.1 80.8 93.3 69.3 302.5
excl. non-recurring items, EUR 57.8 59.7 80.8 73.1 69.7 283.3
million
EBITDA, % 12.7 12.8 16.2 17.9 13.2 15.1
excl. non-recurring items, % 13.3 12.9 16.2 14.0 13.3 14.1
--------------------------------------------------------------------------------
Operating result, EUR million 32.7 34.1 54.6 67.2 43.1 199.0
excl. non-recurring items, EUR 35.0 35.1 54.6 47.0 43.2 179.9
million
EBIT, % 7.5 7.4 11.0 12.9 8.2 9.9
excl. non-recurring items, % 8.0 7.6 11.0 9.0 8.2 9.0
--------------------------------------------------------------------------------
Result before taxes, EUR million 27.7 29.4 47.5 58.0 32.2 167.1
excl. non-recurring items, EUR 30.0 30.4 47.5 40.0 32.3 150.2
million
--------------------------------------------------------------------------------
Result for the period, EUR million 23.9 26.5 26.8 54.7 29.3 137.3
excl. non-recurring items, EUR 25.7 27.5 26.4 36.9 29.4 120.2
million
--------------------------------------------------------------------------------
Result per share, EUR 0.07 0.07 0.08 0.15 0.09 0.39
excl. non-recurring items, EUR 0.07 0.07 0.08 0.10 0.09 0.34
--------------------------------------------------------------------------------
Return on equity, % 9.5 10.4 10.6 22.5 13.2 14.7
excl. non-recurring items, % 10.2 10.8 10.4 15.2 13.2 12.9
--------------------------------------------------------------------------------
Return on capital employed, % 7.8 8.1 13.0 16.5 11.0 12.5
excl. non-recurring items, % 8.3 8.3 13.0 11.6 11.0 11.3
--------------------------------------------------------------------------------
Equity ratio at end of period, % 44.4 46.5 45.6 45.9 40.8 46.5
Gearing ratio at end of period, % 70 64 66 67 73 64
Net gearing ratio at end of period, 42 32 34 39 34 32
%
Shareholders' equity per share at 2.77 2.89 2.86 2.83 2.63 2.89
end of period, EUR
Interest-bearing net liabilities, 412.3 333.4 344.2 389.0 318.9 333.4
EUR million
Gross investments, EUR million 54.3 60.8 44.8 48.3 23.9 177.8
Net cash flow from operating -22.3 65.9 92.5 55.8 32.5 246.7
activities, EUR million
--------------------------------------------------------------------------------
Deliveries, 1,000 tonnes
Paperboard 378 365 373 366 345 1,449
Non-core operations 15 65 118 138 156 478
--------------------------------------------------------------------------------
Personnel at the end of period 2,573 2,601 2,642 2,850 3,158 2,601
--------------------------------------------------------------------------------
EBITDA = Earnings before interest, taxes, depreciation
and impairment charges
Near-term outlook
Metsä Board's paperboard deliveries are expected to grow in April–June from the
first quarter of 2016. Also, sales are expected to return to growth. The
start-up phase and volumes of the new folding boxboard machine. In addition,
the result is weakened by more significant maintenance shutdowns compared to
first quarter.
Total production costs in April–June are expected to remain at approximately
the level of the first quarter of 2016.
Demand for paperboard is expected to remain stable in both Europe and the
Americas. The market prices of folding boxboard and white fresh forest fibre
linerboard are expected to remain stable.
The global demand for and supply of long- and short-fibre pulp is expected to
remain stable.
The company estimates that the full production capacity of Husum’s new folding
boxboard production machine will be reached by the end of 2016. The target is
to sell approximately 200,000 tonnes of the new folding boxboard from Husum to
the Americas and for food service packaging globally in 2016.
Metsä Board’s operating result excluding non-recurring items in the second
quarter of 2016 is expected to remain roughly on the same level as in the first
quarter of 2016.
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–March 2016 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
More information:
Markus Holm, CFO, tel. +358 (0)10 465 4913
Katri Sundström, Head of Investor Relations, tel. +358 (0)400 976 333
More information will be available from 1 p.m. on 3 May 2016. A conference call
for investors and analysts will be held in English and begin at 3 p.m. (EET).
Conference call participants are requested to dial in and register a few
minutes earlier on the following numbers:
Europe: +44 (0)20 3427 1912
US: +1 646 254 3366
Conference ID: 9263834.
www.metsaboard.com
Metsä Board is a leading European producer of folding boxboards and white
linerboards made from fresh forest fibres. Its lightweight paperboards are
developed as the perfect fit for consumer goods, retail-ready and food service
packaging. The pure fresh forest 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.
© 2024 Nasdaq, Inc. All Rights Reserved |