Interim report January-March 2002

INTERIM REPORT JANUARY - MARCH 2002 Quarter Full year 1-02 4-01 1-01 2001 Net turnover MSEK 3,938 4,343 4,116 16,655 Operating profit excl. items affecting 743 791 703 3,066 comparability MSEK Operating profit MSEK 743 171 703 2,446 Profit after financial 705 128 699 2,294 items MSEK Earnings per share SEK 6.20 2.80 6.10 27.30 Return on equity % 14.4 6.5 13.4 16.0 · The profit after financial items amounted to MSEK 705 (2001 Q1: 699). The first quarter of this year includes a profit of MSEK 110 on the sale of the paper machine that has been replaced at the Hallsta Paper Mill. The profit for the fourth quarter of 2001 was MSEK 748 (excluding items affecting comparability). · Net turnover amounted to MSEK 3,938 (4,116). Net turnover for the fourth quarter was MSEK 4,343. · The operating profit amounted to MSEK 743 compared with MSEK 703 for the first quarter of 2001. · The profit after tax was MSEK 499 (490), which corresponds to earnings per share of SEK 6.20 (6.10). The return on equity was 14.4 per cent (13.4). · The market for newsprint and magazine paper remained weak. The prices of Holmen Paper's products were lower than in the fourth quarter of 2001. Production was restricted due to replacement of the paper machine at the Hallsta Paper Mill and lower demand. The market for paperboard remained weak and Iggesund Paperboard's production was restricted. Prices were stable. BUSINESS AREAS Holmen Paper The market for newsprint and magazine paper remained weak during the first quarter. Deliveries of standard newsprint to Western Europe were 11 per cent lower than in the corresponding period last year. Holmen Paper's deliveries declined by 12 per cent in relation to the fourth quarter. Production was restricted due to the replacement of the paper machine and lower demand. The prices of Holmen Paper's products, which are largely based on annual contracts, were lower than in the fourth quarter of 2001. The operating profit for the January-March period was MSEK 470 (495). The result was adversely affected by lower prices and lower volumes, which was partly offset by positive currency effects. The first quarter includes a profit of MSEK 110 on the dismantling and sale of the old machine in connection with the installation of the new paper machine at the Hallsta Paper Mill. The profit declined by MSEK 98 in relation to the fourth quarter of 2001. Apart from the effects of changing paper machine, lower prices and lower delivery volumes had an effect on the result. Quarter Full year Holmen Paper 1-02 4-01 1-01 2001 Net turnover MSEK 1,894 2,283 2,041 8,757 Operating profit MSEK 470 568 495 2,410 Operating margin % 25 25 24 28 Return on operating 20 24 23 26 capital % Production 1,000 tonnes 362 387 394 1,586 Deliveries 1,000 tonnes 345 394 369 1,525 Iggesund Paperboard The market for paperboard remained weak during the first quarter. West European producers' deliveries of virgin fibre-based paperboard were 1 per cent lower than in the first quarter of 2001. In relation to the fourth quarter of 2001, deliveries rose by 7 per cent, mainly due to normal seasonal variations. Iggesund Paperboard's deliveries increased in relation to the fourth quarter but production restrictions were continued. Prices were stable. The operating profit for the January-March period amounted to MSEK 186 (142). The improvement in the result was due to higher delivery volumes and lower costs. The profit increased by MSEK 76 in relation to the fourth quarter of 2001 due to slightly higher delivery volumes in the first quarter and relatively high costs in the fourth quarter. Quarter Full year Iggesund Paperboard 1-02 4-01 1-01 2001 Net turnover MSEK 1,205 1,181 1,102 4,467 Operating profit MSEK 186 110 142 455 Operating margin % 15 9 13 10 Return on operating 17 9 11 9 capital % Production, paperboard1, 106 106 106 403 000 tonnes Deliveries, paperboard1, 110 106 104 410 000 tonnes ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/22002/04/29/20020429BIT00660/wkr0001.doc The full report http://www.waymaker.net/bitonline/22002/04/29/20020429BIT00660/wkr0002.pdf The full report