2012-02-09 11:00:00 CET
2012-02-09 11:00:12 CET
REGULATED INFORMATION
M-real - Financial Statement Release
M-real Corporation’s operating result excluding non-recurring items was EUR 59 million in 2011
M-real Corporation Financial Statement 1 January-31 December 2011, 9 February
2012 at 12:00 noon
Full year result for 2011
-- Sales were EUR 2,485 million (Q1-Q4/2010: 2,605)
-- The operating result excluding non-recurring items was EUR 59 million
(173). The operating result including non-recurring items was EUR -214
million (146).
-- The result before taxes excluding non-recurring items was EUR 0 million
(92). The result before taxes including non-recurring items was EUR -281
million (48).
-- Earnings per share from continuing operations excluding non-recurring items
were EUR 0.02 (0.23) and including non-recurring items EUR -0.83 (0.09).
Result for the fourth quarter of 2011
-- Sales were EUR 524 million (Q3/2011: 616)
-- The operating result excluding non-recurring items was EUR -22 million (6).
The operating result including non-recurring items was EUR -215 million
(-13).
-- The result before taxes excluding non-recurring items was EUR -33 million
(-11). Result before taxes including non-recurring items was EUR -230
million (-29).
-- Earnings per share from continuing operations excluding non-recurring items
were EUR -0.04 (-0.05) and including non-recurring items EUR -0.63 (-0.11).
Events during the fourth quarter of 2011
-- Delivery volumes decreased in all main products due to the general economic
uncertainty.
-- The Äänekoski paper machine 2 was shut down and the mill's reel production
is moved to the Husum mill in Sweden.
-- The annual folding boxboard capacity at the Kyro mill was increased by
40,000 tonnes.
Events after the period
-- M-real announced it will sell the Premium Paper operations of the Reflex
mill to Hahnemühle FineArt GmbH.
-- M-real revised its management and reporting structure.
As of the first quarter of 2012, the company's reporting segments will be
Paperboard, and Paper and Pulp.
Pasi Piiparinen was appointed Head of the Paperboard business area as of 20
March 2012.
-- M-real Corporation's Board of Directors proposes to the Annual General
Meeting convening on 28 March 2012 that the company's business name is
changed to Metsä Board Corporation.
“The uncertainty in the general economic situation in Europe decreased the
delivery volumes that weakened our profitability especially in the pulp and
paper business in the last quarter of 2011. Paperboard delivery volumes
decreased as well, but less than pulp and paper.
Order inflows for cartonboard that declined considerably in the latter half of
2011 have shown a recovery in recent weeks. The end demand for cartonboard has
not showed signs of weakening. However, due to the general economic
uncertainty, estimating the future delivery volumes remains challenging.
The expansion investment at the Kyro folding boxboard mill was completed
according to plan in November. As announced earlier, M-real will also increase
the capacity of the Äänekoski folding boxboard mill in the spring. As the
demand for cartonboard normalises, M-real will be in a very good position to
address demand and improve its profitability through its modernised production
machinery.
Our planned measures to eliminate losses in the paper business are proceeding
as planned. In December, the production of coated fine paper at the Äänekoski
mill was discontinued and its reel production is moved to the Husum mill.
Statutory negotiations concerning the Alizay mill and the speciality paper
operations are targeted to be completed in the first quarter of 2012. The
proposed discontinuation of these unprofitable operations would improve the
company's profitability considerably.
M-real Corporation's Board of Directors proposes to the Annual General Meeting
convening on 28 March 2012 that the company's business name is changed to Metsä
Board Corporation. During the past few years, we have been working determinedly
to transform ourselves from a paper company into a profitable paperboard
company. Our restructuring has progressed to a point where we want also our
name to reflect this. As part of Metsä Group's new unified image, we will be
able to strengthen our presence in the market.”
Mikko Helander, CEO
KEY FIGURES 2011 2011 2011 2011 2010 2011 2010
Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
-------------------------------------------------
Sales, EUR million 524 616 660 685 665 2,485 2,605
--------------------------------------------------------------------------------
EBITDA, EUR million -172 24 48 77 74 -23 312
excl. non-recurring items, EUR 8 36 62 74 71 180 305
million
EBITDA, % -32.8 3.9 7.3 11.2 11.1 -0.9 12.0
excl. non-recurring items, % 1.5 5.8 9.4 10.8 10.7 7.2 11.7
--------------------------------------------------------------------------------
Operating result, EUR million -215 -13 -32 46 -4 -214 146
excl. non-recurring items, EUR -22 6 32 43 37 59 173
million
EBIT, % -41.0 -2.1 -4.8 6.7 -0.6 -8.6 5.6
excl. non-recurring items, % -4.2 1.0 4.8 6.3 5.6 2.4 6.6
--------------------------------------------------------------------------------
Result before taxes
from continuing operations, -230 -29 -53 31 -22 -281 48
EUR million
excl. non-recurring items, EUR -33 -11 16 28 20 0 92
million
--------------------------------------------------------------------------------
Result for the period
from continuing operations, -209 -33 -59 28 -22 -273 27
EUR million
from discontinued operations, 0 0 0 0 0 0 0
EUR million
-------------------------------------------------
Total, EUR million -209 -33 -59 28 -22 -273 27
--------------------------------------------------------------------------------
Result per share
from continuing operations, -0.63 -0.11 -0.17 0.08 -0.06 -0.83 0.09
EUR
from discontinued operations, 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EUR
-------------------------------------------------
Total, EUR -0.63 -0.11 -0.17 0.08 -0.06 -0.83 0.09
--------------------------------------------------------------------------------
Result per share
excl. non-recurring items, EUR -0.04 -0.05 0.04 0.07 0.07 0.02 0.23
--------------------------------------------------------------------------------
Return on equity, % -100.4 -14.1 -23.5 10.8 -8.7 -31.5 2.8
excl. non-recurring items, % -5.4 -6.3 4.2 9.5 8.7 0.9 7.6
--------------------------------------------------------------------------------
Return on capital employed, % -43.3 -1.5 -6.1 8.4 -0.7 -9.9 5.7
excl. non-recurring items, % -3.7 2.0 6.4 7.8 6.3 3.4 7.6
--------------------------------------------------------------------------------
Equity ratio at end of period, 27.4 32.7 33.9 33.6 32.1 27.4 32.1
%
Gearing ratio at end of 154 128 120 125 135 154 135
period, %
Net gearing ratio at end of 106 83 84 78 83 106 83
period, %
Interest-bearing net 783 772 809 799 827 783 827
liabilities, EUR million
Gross investments, EUR million 35 17 31 12 18 95 66
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paper businesses 209 254 277 301 297 1,042 1,155
Consumer Packaging 268 307 315 334 344 1,224 1,390
--------------------------------------------------------------------------------
Personnel at the end of period
in continuing operations 4,070 4,163 4,699 4,515 4,538 4,070 4,538
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
Near-term outlook
End demand for cartonboard has not shown material weakening in the main
markets, with the exception of certain market segments in southern Europe.
Cartonboard order inflow declined considerably in the latter half of 2011,
which is estimated to mainly be due to the decreased inventory levels in
different parts of the delivery chain as the general economic uncertainty
increased. In the first half of 2011, the inventory levels in the delivery
chain were exceptionally high, mainly due to the challenging availability of
cartonboard.
Cartonboard order books have been growing in recent weeks but continue to be
below the normal level. The long-term demand and profitability outlook for
cartonboard continues strong and M-real is increasing its folding boxboard
capacity as planned. The last of the investments in the programme announced
earlier, the increase of folding boxboard capacity at the Äänekoski mill, will
be completed in the second quarter of 2012.
The prices for the 2012 annual folding boxboard contracts are, on average, at
the same level as in 2011.
Order books for paper products and pulp continue to be below the normal level
and production curtailments will be implemented at most mills also in early
2012. Visibility in the European paper and pulp markets is currently weak.
Production costs are estimated to decrease slightly over the next few months.
It is expected that the statutory negotiations concerning the unprofitable
operations of the Alizay mill and the speciality paper operations will be
completed in the first quarter of 2012. The proposed discontinuation of these
unprofitable operations would improve the company's profitability considerably.
M-real's operating result for the first quarter of 2012, excluding
non-recurring items, is expected to improve from the last quarter of 2011
mainly due to higher paperboard and pulp delivery volumes. Furthermore, the
losses of Alizay mill and the speciality paper business are expected to
somewhat reduce already in the first quarter of 2012.
Disclosure procedure
M-real Corporation has started to follow the disclosure procedure enabled by
Standard 5.2b published by the Finnish Financial Supervision Authority and
hereby publishes its Financial Statement 2011 enclosed to this stock exchange
release. M-real's complete Financial Statement is attached to this release in
pdf-format and is also available on the company's web site at www.m-real.com.
M-REAL 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 9 February 2012. 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 910828.
M-real is Europe's leading fresh forest fibre paperboard producer and a major
paper supplier. It offers premium solutions for consumer packaging and
communications and advertising end uses. The company's sales network serves
brand owners, carton printers, printing houses, merchants and office suppliers.
M-real is part of Metsä Group and is listed on the NASDAQ OMX Helsinki. In
2011, M-real's sales totalled EUR 2.5 billion. The company has approximately
4,000 employees.
M-real Corporation's Board of Directors proposes to the Annual General Meeting
convening on 28 March 2012 that the company's business name is changed to Metsä
Board Corporation.
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