Metsäliitto Osuuskunta - Interim report (Q1 and Q3)

Metsä Group’s operating result excluding non-recurring items in January–June was EUR 183 million

Metsä Group Interim Report 1-6/2013, Stock Exchange Release 1 August 2013 at
noon EET 

Result in the first half of 2013
- Sales amounted to EUR 2,502 million (1-6/2012: EUR 2,531 million).
- Operating result excluding non-recurring items was EUR 183 million (117).
Operating result including non-recurring items was EUR 183 million (107). 
- Result before taxes excluding non-recurring items was EUR 130 million (71).
Result before taxes including non-recurring items was EUR 131 million (61). 
- Return on capital employed excluding non-recurring items was 9.8 per cent
(6.6). 
- Cash flow from operations amounted to EUR 124 million (127).

Result in the second quarter of 2013
- Sales amounted to EUR 1,241 million (4-6/2012: EUR 1,247 million).
- Operating result excluding non-recurring items was EUR 94 million (64).
Operating result including non-recurring items was EUR 89 million (62). 
- Result before taxes excluding non-recurring items was EUR 73 million (53).
Result before taxes including non-recurring items was EUR 69 million (51). 
- Return on capital employed excluding non-recurring items was 9.8 per cent
(7.4). 

Events in the second quarter of 2013
- The price of pulp increased somewhat but sales volumes decreased slightly
from the previous quarter. 
- Delivery volumes of folding boxboard continued to increase slightly and
market prices were stable. 
- Demand for coated white-top kraftliner continued to be very strong. The
production of light fully-bleached kraftliners began at Husum. 
- Delivery volumes of Metsä Board's papers declined from the previous quarter
and prices remained at a low level. 
- Katrinefors Kraftvärme AB, a joint venture in which Metsä Tissue has a 50 per
cent holding, announced that it will build a bioenergy plant in conjunction
with the Metsä Tissue mill in Mariestad, Sweden. 
- Metsä Wood launched an efficiency programme in order to improve its
competitiveness. 
- Metsäliitto Cooperative acquired the shares of Metsä Tissue Corporation owned
by  Varma Mutual Employment Pension Company, a total of 8.38 per cent of the
company's share capital. 


“The second quarter of the year met our expectations. Due to determined
execution of our selected strategy, long-term development and streamlining
measures, the Group's operating result excluding non-recurring items has
improved steadily from one quarter to another since the end of 2011. 

The development of the Group's result in the second quarter was particularly
supported by the seasonally strong quarter in the Wood Products Industry, but
in the third quarter, seasonal fluctuations typically have an opposite impact.
The situation is stable in terms of demand for pulp, paperboard and tissue
papers.  The market situation for papers continues to be difficult. 

The chronic uncertainty in the market environment makes the operations of
export companies more difficult and has a negative impact on the demand for
products and services. Therefore, it is of utmost importance that no additional
burdens are placed on the industry and that burdens already decided on are
cancelled.” 

Kari Jordan, President & CEO, Metsä Group



Metsä Group

Income statement, EUR million
The figures for 2012 are restated 2013
1-6 2012
1-6 2013
4-6 2012
4-6 2012
1-12 
Sales 2 501.7 2 530.8 1 240.5 1 246.9 5 001.0 
  Other operating income 39.5 37.4 23.3 16.3 76.8 
  Operating expenses -2 230.9 -2 330.0 -1 117.1 -1 135.8 -4 587.2 
  Depreciation and impairment losses -126.9 -131.0 -57.5 -65.1 -249.1 
Operating result 183.5 107.3 89.3 62.2 241.5 
  Share of profit from associates 9.5 3.9 2.8 4.9 4.8 
 Exchange gains and losses 0.0 -0.3 -0.2 -1.7 2.4 
  Other net financial items -61.8 -49.9 -23.0 -14.6 -115.5 
Result before income tax 131.2 61.0 69.0 50.9 133.2 
  Income taxes -34.7 -25.3 -18.8 -16.8 -31.8 
Result for the period 96.5 35.7 50.2 34.1 101.4 

 

Profitability
The figures for 2012 are restated  2013
1-6 2012
1-6 2013
4-6 2012
4-6 2012
1-12 
Operating result, EUR mill. 183.5 107.3 89.3 62.2 241.5 
   - “ -, excluding non-recurring items 182.7 116.9 93.7 63.9 255.7 
   - “ - % of sales 7.3 4.6 7.6 5.1 5.1 
Return on capital employed, % 9.8 6.1 9.3 7.3 6.7 
   - ” -, excluding non-recurring items 9.8 6.6 9.8 7.4 7.1 
Return on equity, % 10.4 4.3 10.7 8.2 6.1 
   - ” -, excluding non-recurring items 10.3 5.5 11.7 8.6 6.9 
            
Financial position
The figures for 2012 are restated 2013
30.6. 2012
30.6. 2013
31.3. 2012
31.3 2012
31.12. 
Equity ratio, % 35.0 33.6 35.1 28.3 34.8 
Net gearing ratio, % 89 94 89 133 86 
Interest-bearing net liabilities, EUR mill. 1 649 1 705 1 676 1 993 1 590 

 

Segments

Sales and Operating result
January-June 2013
(EUR mill.) Wood Supply
& Forest Services    Wood
Products Industry  
Pulp
Industry Paperboard
and Paper Industry Tissue and Cooking Papers 
Sales 815.1 475.7 632.4 1 037.8 493.8 
 Other operating income 3.0 4.8 8.0 26.5 3.8 
 Operating expenses -801.4 -456.5 -513.0 -950.2 -449.9 
 Depreciation & impairment losses -1.5 -15.2 -32.6 -50.4 -20.1 
Operating result 15.2 8.8 94.8 63.7 27.6 
  Non-recurring items - 7.3 - -7.5 -0.6 
Operating result, excl. non-rec. items 15.2 16.1 94.8 56.2 27.0 
- % of sales 1.9 3.4 15.0 5.4 5.5 



Near-term outlook

In Finland, demand for logging sites harvestable in the summer continues to be
good in all timber types. There is also demand for wood from delivery
contracts. 

Sales in the wood products industry are expected to shrink in the third quarter
due to seasonal fluctuations in demand and the summer production downtime.
Sales of processed sawn goods are also expected to be lower than in the
corresponding period last year due to the difficult market situation. 

Utilisation rates at Metsä Fibre's pulp mills are expected to remain good in
the third quarter. Demand and supply are in balance, and average pulp prices
are expected to be at the same level as during the second quarter. 

Delivery volumes of folding boxboard are estimated to be approximately at the
second quarter level in the third quarter. It is believed that demand for
white-top kraftliner will continue to be very strong and delivery volumes are
expected to increase slightly. The average price is estimated to be
approximately at the previous quarter level. 

The market situation of papers continues to be difficult. Delivery volumes of
uncoated fine paper and coated paper are expected to be approximately at the
previous quarter level in the third quarter. No significant price changes are
in sight. 

In the third quarter, extensive maintenance shutdowns in accordance with the
annual plan will be carried out at the Husum and Kemi integrated mills. Mainly
due to these shutdowns, Paperboard and Paper's third quarter operating result
excluding non-recurring items is expected to be weaker than in the second
quarter of 2013. 

In the tissue paper market, demand is expected to continue to be steady in all
market areas, and particularly to grow in Russia. 

Metsä Group's operating result excluding non-recurring items in the third
quarter of 2013 is expected to be weaker than in the second quarter of the year
due to seasonal variation, especially in Wood Products Industry, and to the
general economic situation. 


Disclosure procedure
Metsä Group 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
Group's complete Interim Report is attached to this release in pdf-format and
is also available on the company's web site at www.metsagroup.com. 


METSÄ GROUP
Group Communications

For further information, please contact:
Vesa-Pekka Takala, CFO, Metsä Group, tel. +358 (0)10 465 4260
Reeta Kaukiainen, SVP, Communications, Metsä Group, tel. +358 (0)10 465 4541,
+358 (0)50 522 0924 



www.metsagroup.com

Metsä Group is a responsible forest industry group whose products' main raw
material is renewable and sustainably grown Nordic wood. Metsä Group focuses on
tissue and cooking papers, consumer packaging paperboards, pulp, wood products,
and wood supply and forest services. Its high-quality products combine
renewable raw materials, customer-orientation, sustainable development and
innovation. Metsä Group's sales totalled EUR 5.0 billion in 2012, and it
employs approximately 11,500 people. The Group operates in some 30 countries.
Metsäliitto Cooperative is the parent company of Metsä Group and is owned by
approximately 125,000 Finnish forest owners.

Bifogade filer:

Metsa_Group_InterimReport_1-6_2013.pdf