Year-end communiqué for 2000

YEAR-END COMMUNIQUÉ FOR 2000 Highlights * Profit after financial items amounted to MSEK 4,741 (1999: 2,409). The profit includes items affecting comparability of MSEK 2,023. The fourth quarter profit amounted to MSEK 424, which may be compared with MSEK 660 (excluding items affecting comparability) for the third quarter. The decline in the result for the fourth quarter was mainly due to higher production costs, partly seasonal, a deterioration in the result of the UK-based paperboard business and a provision for structuring costs. * The net profit after tax for the year amounted to MSEK 3,972 (1,814), which corresponds to earnings per share of SEK 45.90 (20.40). The return on equity was 22.4 per cent (10.6). * The Board proposes to pay a dividend of SEK 69 (11) per share, of which SEK 9 ordinary dividend and SEK 60 extra dividend. * Demand for newsprint and magazine paper remained very firm. During the fourth quarter Holmen Paper's deliveries were high, capacity was utilised to the full, order situation was strong, and prices stable. The price of Holmen Paper's products has been possible to raise with effect from the start of 2001. A first half-year with strong demand for paperboard was followed by a more slackened order intake during the second half of the year, and paperboard producers were therefore only partly able to implement the price increases they had announced. Iggesund Paperboard's deliveries remained unchanged during the fourth quarter. Net turnover and results Full year Net turnover amounted to MSEK 15,155 (1999: 14,556 excluding, and 20,508 including divested activities). The operating profit amounted to MSEK 4,842 (2,615). The operating profit excluding items affecting comparability and divested activities increased by MSEK 48 to MSEK 2,295. The result was favourably affected by higher delivery volumes while the costs for pulp and recovered paper increased. A sum of MSEK 64 was charged against the result to cover structuring costs at Iggesund Timber. The operating margin was 15 (15 for comparable activities) per cent. The profit after tax for the year amounted to MSEK 3,972 (1,814) which corresponds to earnings per share of SEK 45.90 (20.40). The return on operating capital was 24.6 per cent (11.7). The return on operating capital, excluding items affecting comparability and divested activities, was 13.1 per cent (13.9). The return on equity was 22.4 per cent (10.6). Fourth quarter Fourth quarter turnover amounted to MSEK 4,048, which may be compared with MSEK 3,742 for the third quarter. The operating result, excluding items affecting comparability and divested activities, declined by MSEK 233 to MSEK 438 as a result of an increase in production costs, partly seasonal, a deterioration in the result of the UK-based paperboard business, higher costs for maintenance and investment projects and an MSEK 64 provision for structuring costs at Iggesund Timber. Holmen Paper Demand for newsprint and magazine paper remained very firm. In 2000, deliveries of newsprint to Western Europe rose by 5 per cent, of SC paper by 9 per cent and of coated paper by 10 per cent, all in relation to 1999. Holmen Paper's deliveries rose by 10 per cent during the year, with deliveries from Papelera Peninsular, which was acquired in July 1, accounting for half of the increase. Deliveries of improved newsprint, a priority product area, increased most (15 per cent). During the fourth quarter, deliveries rose by 8 per cent which was possible by reducing inventories. Production capacity was utilised to the full, the order situation remained strong, and prices were stable. The prices of Holmen Paper's products were raised with effect from the start of 2001. Holmen Paper's operating profit for 2000 amounted to MSEK 1,389 (1,418). The result was favourably affected by higher delivery volumes, although these were offset by higher variable costs, mainly of pulp and recovered paper. . ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/05/20010205BIT00480/bit0001.doc The full Year-End Report http://www.bit.se/bitonline/2001/02/05/20010205BIT00480/bit0002.pdf The full Year-End Report