2014-11-05 11:00:00 CET
2014-11-05 11:00:02 CET
REGULATED INFORMATION
Metsä Board Oyj - Interim report (Q1 and Q3)
Metsä Board Corporation’s operating result excluding non-recurring items for January–September 2014 was EUR 100 million
Metsä Board Corporation Interim Report 1 January-30 September 2014, 5 November
2014 at 12:00 noon
Result for January-September 2014
• Sales were EUR 1,509.0 million (Q1-Q3/2013: 1,540.1).
• Operating result excluding non-recurring items was EUR 99.6 million (75.1).
Operating result including non-recurring items was EUR 109.8 million (83.0).
• Result before taxes excluding non-recurring items was EUR 68.1 million
(30.8). Result before taxes including non-recurring items was EUR 76.0 million
(38.8).
• Earnings per share excluding non-recurring items were EUR 0.17 (0.08).
Earnings per share including non-recurring items were EUR 0.19 (0.10).
Result for the third quarter of 2014
• Sales were EUR 513.8 million (Q2/2014: 494.0).
• Operating result excluding non-recurring items was EUR 35.2 million (28.3).
Operating result including non-recurring items was EUR 34.1 million (32.2).
• Result before taxes excluding non-recurring items was EUR 27.3 million
(20.0). Result before taxes including non-recurring items was EUR 26.1 million
(23.9).
• Earnings per share excluding non-recurring items were EUR 0.07 (0.04).
Earnings per share including non-recurring items were EUR 0.06 (0.05).
Events during the third quarter of 2014
• Paperboard deliveries continued to increase.
• The delivery volumes of paper and market pulp were at approximately the same
level as in the previous quarter.
• No significant changes took place in the prices of paperboard and paper. The
prices of market pulp deliveries increased slightly.
• Net debt decreased to EUR 491 million as a result of strong cash flow.
Events after the period
• Mika Joukio started as the CEO of Metsä Board on 1 October 2014.
“The third quarter of 2014 met our expectations, and our operating result
improved from previous quarter.
Profitable growth in paperboard business is the main goal of our company.
Paperboard deliveries continued to increase strongly in the third quarter, and
the current total delivery volume for 2014 is approximately 10 per cent higher
than at the same time in the previous year. The demand for Metsä Board's
folding boxboard and fresh forest fibre linerboard has been normal in Europe
and very strong in North America. This year, our paperboard deliveries in North
America have increased already by more than 30 per cent.
Our cash flow continued to be good in the third quarter, and our net debt
decreased clearly.
Overall, our profitability and balance sheet structure have improved
significantly in 2014. However, I still see much room for improvement. Our most
important measures include increasing our paperboard business at good price
levels and decreasing the unprofitable paper production.”
Mika Joukio, CEO
KEY FIGURES
2014 2014 2014 2013 2014 2013 2013
Q3 Q2 Q1 Q3 Q1-Q3 Q1-Q3 Q1-Q4
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Sales, EUR million 513.8 494.0 501.2 502.3 1,509.0 1,540.1 2,019.3
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EBITDA, EUR million 60.7 55.9 69.2 44.0 185.8 158.1 214.8
excl. non-recurring 61.8 52.0 61.8 43.6 175.6 152.5 208.0
items, EUR million
EBITDA, % 11.8 11.3 13.8 8.8 12.3 10.3 10.6
excl. non-recurring 12.0 10.5 12.3 8.7 11.6 9.9 10.3
items, %
--------------------------------------------------------------------------------
Operating result, EUR 34.1 32.2 43.5 19.3 109.8 83.0 113.6
million
excl. non-recurring 35.2 28.3 36.1 18.9 99.6 75.1 104.4
items, EUR million
EBIT, % 6.6 6.5 8.7 3.8 7.3 5.4 5.6
excl. non-recurring 6.9 5.7 7.2 3.8 6.6 4.9 5.2
items, %
--------------------------------------------------------------------------------
Result before taxes, EUR 26.1 23.9 26.0 9.0 76.0 38.8 57.8
million
excl. non-recurring 27.3 20.0 20.8 8.5 68.1 30.8 48.6
items, EUR million
--------------------------------------------------------------------------------
Result for the period, 20.8 16.8 24.8 7.3 62.4 32.9 64.1
EUR million
excl. non-recurring 21.9 12.9 20.6 6.8 55.4 25.5 55.4
items, EUR million
--------------------------------------------------------------------------------
Result per share, EUR 0.06 0.05 0.08 0.02 0.19 0.10 0.19
excl. non-recurring 0.07 0.04 0.06 0.02 0.17 0.08 0.17
items, EUR
--------------------------------------------------------------------------------
Return on equity, % 9.8 8.0 11.6 3.6 9.8 5.2 7.5
excl. non-recurring 10.4 6.1 9.6 3.3 8.7 4.1 6.5
items, %
--------------------------------------------------------------------------------
Return on capital 9.0 8.5 11.2 5.1 9.6 6.8 7.0
employed, %
excl. non-recurring 9.2 7.5 9.9 4.9 8.9 6.2 6.4
items, %
--------------------------------------------------------------------------------
Equity ratio at end of 39.8 39.8 41.0 38.7 39.8 38.7 40.7
period, %
Gearing ratio at end of 82 84 84 91 82 91 83
period, %
Net gearing ratio at end 57 65 69 75 57 75 70
of period, %
Shareholders' equity per 2.60 2.54 2.62 2.51 2.60 2.51 2.59
share at end of period,
EUR
Interest-bearing net 491.1 540.1 592.6 622.1 491.1 622.1 597.2
liabilities, EUR million
Gross investments, EUR 7.3 14.0 4.7 16.0 26.0 46.7 66.9
million
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Deliveries, 1 000 tonnes
Cartonboard 237 226 219 225 682 662 872
Linerboard and Paper 265 250 265 247 780 776 1,027
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Personnel at the end of 3,164 3,370 3,145 3,178 3,164 3,178 3,116
period
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EBITDA = Earnings before interest, taxes, depreciation and impairment charges
The divestment of the holding in Metsä Group Treasury Oy in September 2013
improved Metsä Board's equity ratio by approximately 5 percentage points and
return on capital employed by almost 1 percentage point and reduced the
company's gross debt by more than EUR 300 million, compared to the actual
figures for the second quarter of 2013.
Business environment and near-term outlook
Compared to the third quarter, the delivery volumes of folding boxboard and
white-top fresh forest fibre linerboard are estimated to decrease in the fourth
quarter of 2014, as December is a seasonally weaker month. No material changes
in paperboard prices are in sight at the moment.
The delivery volume of paper in the fourth quarter is expected to be at
approximately the same level as in the third quarter. The price of uncoated
fine paper is expected to decrease slightly, and the average price of coated
papers to remain unchanged.
The volume and average price of Metsä Board's market pulp deliveries in the
fourth quarter are expected to be at approximately the same level as in the
third quarter.
No material changes in production costs are expected in the fourth quarter.
Over the past few months, the trend in foreign exchange rates has been
favourable for Metsä Board. The duration of the company's currency hedges is
approximately six months. The recent changes in foreign exchange rates will
thus not have a material effect on the operating result for the fourth quarter
of 2014.
Metsä Board's operating result excluding non-recurring items is in the fourth
quarter of 2014 expected to be roughly at the same level as in the third
quarter of 2014.
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-September 2014 enclosed to this stock
exchange release. Metsä Board's complete Financial Statements 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
Juha Laine, Vice President, Investor Relations and Communications, tel. +358
(0)10 465 4335
More information will be available from 1 p.m. on 5 November 2014. A conference
call for investors and analysts will be held in English 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 7162 0025
USA: +1 334 323 6201
The conference ID is 948479.
Metsä Board is Europe's leading producer of folding boxboard, the world's
leading manufacturer of coated white-top fresh forest fibre 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 on the NASDAQ OMX Helsinki. In 2013, the company's sales
totalled approximately EUR 2.0 billion. The company has approximately 3,100
employees.
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