2015-11-05 11:00:00 CET
2015-11-05 11:00:04 CET
REGULATED INFORMATION
Metsä Board Oyj - Interim report (Q1 and Q3)
Metsä Board Corporation’s operating result excluding non-recurring items for January–September 2015 was EUR 144.8 million
Metsä Board Corporation Interim Report 1 January-30 September 2015, 5 November
2015 at 12.00 noon
Result for January-September 2015
• Sales were EUR 1,545.3 million (Q1-Q3/2014: 1509.0).
• Operating result excluding non-recurring items was EUR 144.8 million (99.6).
Operating result including non-recurring items was EUR 164.9 million (109.8).
• Result before taxes excluding non-recurring items was EUR 119.8 million
(68.1). Result before taxes including non-recurring items was EUR 137.7 million
(76.0).
• Earnings per share excluding non-recurring items were EUR 0.27 (0.16), and
earnings per share including non-recurring items were EUR 0.32 (0.18).
Result for the third quarter of 2015
• Sales were EUR 497.6 million (Q2/2015: 522.0).
• Operating result excluding non-recurring items was EUR 54.6 million (47.0).
Operating result including non-recurring items was EUR 54.6 million (67.2).
• The result before taxes excluding non-recurring items was EUR 47.5 million
(40.0). Result before taxes including non-recurring items was EUR 47.5 million
(58.0).
• Earnings per share excluding non-recurring items were EUR 0.08 (0.10), and
earnings per share including non-recurring items were EUR 0.08 (0.15).
Events in the third quarter of 2015
• Paperboard deliveries continued to grow, and the paperboard price levels were
stable.
• The production of coated paper ended at the Husum mill.
• A strike stopped Metsä Board's entire production in Finland for 24 hours.
• Four carton packages using Metsä Board's paperboard received awards at the
2015 Pro Carton ECMA Awards.
Events after the period
• Metsä Board announced it would increase the price of folding boxboard in
Europe starting from 1 December 2015.
• The installation of the new paperboard machine began at Husum.
• Metsä Board expands its offering in food and food service paperboards by
investing EUR 38 million in extrusion coating.
• The Finnish Tax Administration gave an opinion against the deductibility of
certain losses in Metsä Board's 2014 taxation. The company recognised in its
Q3/2015 result around EUR 15 million in income tax, which was previously
unrecognised. Metsä Board will appeal against this opinion.
• Metsä Board scored a full 100 points in the Nordic Climate Disclosure
Leadership Index (CDLI). In addition, of the eight international companies
included in the global Water A List concerning sustainable use of water, Metsä
Board was the only European company and the only forest sector company.
Profit guidance for the fourth quarter of 2015
• Metsä Board's operating result excluding non-recurring items in the fourth
quarter of 2015 is expected to decline compared to the third quarter of 2015.
The result is weakened primarily by the shutdown of the integrated mill related
to Husum's investment programme.
CEO Mika Joukio:
“The increased paperboard deliveries improved our profitability in the third
quarter of 2015. Our result was burdened by a strike, which stopped our entire
production in Finland for 24 hours. After the review period, we announced a
price increase of folding boxboard in Europe, which will become effective in
December.
We respond to the increasing demand for paperboard by starting production of
folding boxboard at Husum. The new production will mainly be marketed to
Americas, as well as for food service packaging applications globally. Our key
tasks next year are to successfully start-up our new paperboard machine and
growing our sales.
We are investing in product development in order to continue to offer our
customers the most lightweight and high-quality paperboard in the market. We
will expand our offering in the food service packaging segment to end uses
which require barrier properties from paperboard due to requirements for
withstanding fat and moisture. Related to this, we invested in the extrusion
coating line at Husum.
The production of coated paper ended at Husum in September, and the production
of uncoated fine paper sheets will be discontinued by the end of this year. The
remaining production of uncoated fine paper reels will end by the end of 2017,
at the latest.
I am very proud that our sustainability and high-quality products have been
recognised across the field. Our inclusion in the Climate Disclosure Leadership
Index (CDLI) and the recognition for sustainable use of water show that we are
successful by operating responsibly. Receiving four awards in the Pro Carton
ECMA Awards - and especially in the series for sustainable development -
indicates that the excellence of our cartons and their ecological quality have
been taken into account throughout the value chain.”
Key figures
2015 2015 2015 2014 2015 2014 2014
Q3 Q2 Q1 Q3 Q1-Q3 Q1-Q3 Q1-Q4
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Sales, EUR million 497.6 522.0 525.7 513.8 1 1 2
545.3 509.0 008.4
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EBITDA, EUR million 80.8 93.3 69.3 60.7 243.4 185.8 242.2
excl. non-recurring items, 80.8 73.1 69.7 61.8 223.6 175.6 236.2
EUR million
EBITDA, % 16.2 17.9 13.2 11.8 15.8 12.3 12.1
excl. non-recurring items, % 16.2 14.0 13.3 12.0 14.5 11.6 11.8
--------------------------------------------------------------------------------
Operating result, EUR 54.6 67.2 43.1 34.1 164.9 109.8 116.5
million
excl. non-recurring items, 54.6 47.0 43.2 35.2 144.8 99.6 136.5
EUR million
EBIT, % 11.0 12.9 8.2 6.6 10.7 7.3 5.8
excl. non-recurring items, % 11.0 9.0 8.2 6.9 9.4 6.6 6.8
--------------------------------------------------------------------------------
Result before taxes, EUR 47.5 58.0 32.2 26.1 137.7 76.0 77.6
million
excl. non-recurring items, 47.5 40.0 32.3 27.3 119.8 68.1 99.7
EUR million
--------------------------------------------------------------------------------
Result for the period, EUR 26.8 54.7 29.3 20.8 110.8 62.4 68.5
million
excl. non-recurring items, 26.4 36.9 29.4 21.9 92.7 55.4 88.1
EUR million
--------------------------------------------------------------------------------
Result per share, EUR 0.08 0.15 0.09 0.06 0.32 0.18 0.20
excl. non-recurring items, 0.08 0.10 0.09 0.06 0.27 0.16 0.26
EUR
--------------------------------------------------------------------------------
Return on equity, % 10.6 22.5 13.2 9.8 15.9 9.8 8.1
excl. non-recurring items, % 10.4 15.2 13.2 10.4 13.3 8.7 10.4
--------------------------------------------------------------------------------
Return on capital employed, 13.0 16.5 11.0 9.0 13.8 9.6 7.7
%
excl. non-recurring items, % 13.0 11.6 11.0 9.2 12.1 8.9 9.1
--------------------------------------------------------------------------------
Equity ratio at end of 45.6 45.9 40.8 39.8 45.6 39.8 39.2
period, %
Gearing ratio at end of 66 67 73 82 66 82 81
period, %
Net gearing ratio at end of 34 39 34 57 34 57 51
period, %
Shareholders' equity per 2.86 2.83 2.63 2.53 2.86 2.53 2.49
share at end of period, EUR
Interest-bearing net 344.2 389.0 318.9 491.1 344.2 491.1 426.7
liabilities, EUR million
Gross investments, EUR 44.8 48.3 23.9 7.3 117.0 26.0 44.2
million
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Deliveries, 1,000 tonnes
Paperboard 373 366 345 344 1.084 983 1.310
Non-core operations 118 138 156 158 412 478 636
--------------------------------------------------------------------------------
Personnel at the end of 2,642 2,850 3,158 3,164 2,642 3,164 3,111
period
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Result per share and shareholders' equity per share in 2014 have been adjusted
for right issue. The right issue factor was 1.030627
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
Business environment and near-term outlook
It is estimated that the total delivery volume of paperboard will decrease
slightly in the last quarter of the year due to the seasonally weaker December.
The average price of paperboard is estimated to remain approximately at the
level of the previous quarter. Metsä Board announced it would increase the
price of folding boxboard in Europe starting from 1 December 2015.
The global demand for and the price level of long-fibre pulp is expected to
remain stable. Metsä Board's market pulp deliveries are expected to decrease
slightly from the previous quarter in October-December due to the shutdown of
the integrated mill at Husum.
Clearly reductions are being planned in paper deliveries, and prices are
estimated to decrease slightly from the previous quarter.
The production costs in the last quarter of the year will remain approximately
at the level of the previous quarter.
The shutdown of the integrated mill related to the installation of the new
paperboard machine at Husum will impact Metsä Board's operating result for
October-December by approximately EUR -15 million.
Metsä Board's operating result excluding non-recurring items in the fourth
quarter of 2015 is expected to decline compared to the third quarter of 2015.
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 2015 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
Katri Sundström, VP, Investor Relations, tel. +358 (0)400 976 333
More information will be available from 1 p.m. on 5 November 2015. 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 7162 0077
US: +1 334 323 6201
The conference ID is 955861.
www.metsaboard.com
Metsä Board is a leading European producer of folding boxboards and white
linerboards made from fresh forest fibres, and a market pulp supplier. 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
and recyclable after use. The global sales network of Metsä Board supports
customers worldwide, including brand owners, converters and merchants. In 2014,
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 OMX
Helsinki.
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