Metsä Board Corporation’s operating result excluding non-recurring items was EUR 30.2 million in January–March 2013

Metsä Board Corporation Interim Report 1 January–31 March 2013, 7 May 2013 at 12:00 noon

Result for January–March 2013

  • Sales were EUR 535.0 million (Q4/2012: 508.5).
  • The operating result excluding non-recurring items was EUR 30.2 million (23.5). The operating result including non-recurring items was EUR 34.8 million (39.3).
  • The result before taxes excluding non-recurring items was EUR 3.9 million (9.4). The result before taxes including non-recurring items was EUR 8.5 million (25.2).
  • Earnings per share excluding non-recurring items were EUR 0.01 (0.08) and including non-recurring items EUR 0.02 (0.11).

Events in the first quarter of 2013

  • Folding boxboard order inflow strengthened and delivery volumes increased from the previous quarter.
  • Demand for white-top kraftliner continued to be very strong. Metsä Board announced a white-top kraftliner price increase.
  • The delivery volumes of uncoated fine paper and coated papers improved from the previous quarter, but prices declined. Metsä Board announced an uncoated fine paper price increase in Europe.
  • Demand for market pulp continued to be strong and prices increased slightly.
  • In January, Metsä Board divested the Alizay mill site in France, including the equipment and buildings, to Conseil Général de l’Eure, representing the French government, for EUR 22 million.


“Our operating result excluding non-recurring items improved in the first quarter of 2013, mainly due to increased delivery volumes. The market situation in paperboard is currently strong, and delivery volumes are expected to be good in the second quarter as well. We will increase the prices of white-top kraftliner in all our main markets during the second quarter. Demand for pulp has also continued to be strong, and prices have continued to increase slightly.

Production efficiency of our expanded folding boxboard capacity reached the targeted level at the beginning of 2013. The capacity expansion was very important to our customers so that the availability of high-quality paperboard could be ensured. In the folding boxboard business, Europe is our home market, but we are seeking new business in North America and Asia as well, where we are developing our operations in order to clearly increase delivery volumes in the future. We still have good opportunities to grow the capacity of our existing paperboard machines through moderate investments in order to support our customers' growth.

No signs of improvement are visible in the European paper market. Cash flow of the Husum mill has been positive even in the difficult market situation. Nevertheless, Husum’s profitability must be improved, and we have launched a new cost savings programme to reduce both fixed and variable costs. We have worked hard in order to develop more profitable products at Husum, both in parallel with the existing ones and to replace them. The first concrete example of this is the light-weight uncoated linerboards, the production of which was launched in April. Our linerboard business has developed very well, and the Kemi mill, which increasingly focuses on the coated grades, has been operating at full capacity for a long time. Husum's new products enable profitable growth in the linerboard business, and they complement our product portfolio in an excellent way.”

Mikko Helander, CEO


Adoption of amended IAS19 standard

Metsä Board has adopted retrospectively from the beginning of 2013 amended IAS19 Employee Benefits-standard. The major changes were as follows: all actuarial gains and losses are immediately recognized in other comprehensive income and finance costs are calculated on a net funding basis.

Group’s equity decreased as of December 31, 2012 by EUR 10.6 million. Operating result for 2012 increased by EUR 1.4 million and finance costs increased by EUR 3.2 million.

The effects on the Balance sheet and Income statement are more specifically presented in the Notes (Note 1).

Changed key figures are presented in the key figures table (Key figures, restate) as well as key figures according to old standard (Key figures, reported in 2012).

 

KEY FIGURES, restate 2013 2012 2012 2012 2012 2012    
  Q1 Q4 Q3 Q2 Q1 Q1-Q4    
Sales, EUR million 535.0 508.5 532.3 522.2 544.6 2,107.6    
EBITDA, EUR million 61.4 53.8 52.0 189.9 25.7 321.4    
  excl. non-recurring items, EUR million 56.8 49.0 54.0 47.8 35.2 186.0    
EBITDA, % 11.5 10.6 9.8 36.4 4.7 15.3    
  excl. non-recurring items, % 10.6 9.6 10.1 9.2 6.5 8.8    
Operating result, EUR million 34.8 39.3 23.4 162.0 -3.6 221.1    
  excl. non-recurring items, EUR million 30.2 23.5 25.5 19.8 6.1 74.9    
EBIT, % 6.5 7.7 4.4 31.0 -0.7 10.5    
  excl. non-recurring items, % 5.6 4.6 4.8 3.8 1.1 3.6    
Result before taxes, EUR million 8.5 25.2 7.8 159.4 -18.5 173.9    
  excl. non-recurring items, EUR million 3.9 9.4 9.9 17.2 -8.8 27.7    
Result for the period, EUR million 8.0 38.2 7.9 140.6 -15.4 171.3    
  excl. non-recurring items, EUR million 3.4 24.2 9.9 14.0 -5.7 42.4    
Result per share, EUR 0.02 0.11 0.03 0.43 -0.05 0.52    
  excl. non-recurring items, EUR 0.01 0.08 0.03 0.04 -0.02 0.13    
Return on equity, % 3.8 18.1 3.9 72.8 -8.4 21.5    
  excl. non-recurring items, % 1.6 11.5 4.8 7.3 -3.1 5.3    
Return on capital employed, % 7.7 8.7 5.4 36.0 -0.2 12.4    
  excl. non-recurring items, % 6.8 5.5 5.8 6.0 1.9 4.8    
Equity ratio at end of period, % 33.3 33.2 31.2 31.1 27.9 33.2    
Gearing ratio at end of period, % 122 130 138 138 153 130    
Net gearing ratio at end of period, % 69 73 70 73 103 73    
Shareholders' equity per share at end of period, EUR 2.54 2.59 2.51 2.46 2.22 2.59    
Interest-bearing net liabilities, EUR million 577.6 625.2 580.1 595.4 758.5 625.2    
Gross investments, EUR million 9.2 28.2 10.7 17.5 9.7 66.1    
Deliveries, 1 000 tonnes                
  Paperboard 311 298 306 289 295 1,188    
  Paper 186 162 169 165 185 681    
                 
Personnel at the end of period 3,239 3,279 3,337 3,597 3,818 3,279    
                 
Deliveries are not comparable due to restructuring.                
EBITDA = Earnings before interest, taxes, depreciation and impairment charges

 

KEY FIGURES, reported in 2012   2012 2012 2012 2011 2012
    Q4 Q3 Q2 Q1 Q1-Q4
Sales, EUR million   508.5 532.3 522.2 544.6 2,107.6
EBITDA, EUR million   54.8 51.2 189.1 24.9 320.0
  excl. non-recurring items, EUR million   50.0 53.2 47.0 34.4 184.6
EBITDA, %   10.8 9.6 36.2 4.6 15.2
  excl. non-recurring items, %   9.8 10.2 9.0 6.2 8.8
Operating result, EUR million   40.4 22.6 161.2 -4.4 219.8
  excl. non-recurring items, EUR million   24.6 24.7 19.0 5.3 73.6
EBIT, %   8.1 4.1 30.8 -0.7 10.4
  excl. non-recurring items, %   4.9 4.7 3.6 0.9 3.5
Result before taxes, EUR million   27.0 7.8 159.4 -18.5 175.7
  excl. non-recurring items, EUR million   11.2 9.9 17.2 -8.8 29.5
Result for the period, EUR million   39.9 7.9 140.6 -15.4 173.0
  excl. non-recurring items, EUR million   25.9 9.9 14.0 -5.7 44.1
Result per share, EUR   0.13 0.02 0.43 -0.05 0.53
  excl. non-recurring items, EUR   0.08 0.02 0.05 -0.02 0.13
Return on equity, %   18.8 3.9 72.9 -8.4 21.6
  excl. non-recurring items, %   12.2 4.8 7.3 -3.1 5.5
Return on capital employed, %   8.9 5.2 35.9 -0.4 12.3
  excl. non-recurring items, %   5.7 5.7 5.8 1.7 4.7
Equity ratio at end of period, %   33.6 31.1 31.0 27.8 33.6
Gearing ratio at end of period, %   128 138 138 154 128
Net gearing ratio at end of period, %   72 70 73 104 72
Shareholders' equity per share at end of period, EUR 2.62 2.51 2.46 2.21 2.62
Interest-bearing net liabilities, EUR million   625.2 580.1 595.4 758.5 625.2
Gross investments, EUR million   28.2 10.7 17.5 9.7 66.1
Deliveries, 1 000 tonnes            
  Paperboard   298 306 289 295 1,188
  Paper   162 169 165 185 681
             
Personnel at the end of period   3,279 3,337 3,597 3,818 3,279

 

Near-term outlook
Delivery volumes of folding boxboard improved in the first quarter of 2013 and were at a good level. The folding boxboard delivery volumes are estimated to continue to further improve slightly in the second quarter of 2013. Metsä Board is considering to announce a folding boxboard price increase during the coming months.

Demand for white-top kraftliner is expected to continue to be at very good level, and delivery volumes are estimated to be at the previous quarter's level in the second quarter of 2013. Metsä Board has announced a white-top kraftliner price increase of approximately EUR 50 per tonne in all main markets.

The delivery volumes of uncoated fine paper and coated papers are estimated to decline slightly from the previous quarter due to seasonal reasons in the second quarter of 2013. Metsä Board has announced an uncoated fine paper price increase of approximately EUR 50 per tonne in Europe. The price of coated paper is estimated to remain unchanged at the low level in the near future.

Delivery volumes of market pulp are estimated to be at the previous quarter’s level. The pulp price increase is expected to continue in the second quarter.

Higher number of planned maintenance shutdowns has a slight negative result impact in the second quarter of 2013.

Production costs in the second quarter of 2013 are expected to be approximately at the same level as in the previous quarter.

Metsä Board’s operating result, excluding non-recurring items, is in the second quarter of 2013 expected to be roughly in line with the first quarter of 2013.


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-March 2013 enclosed to this stock exchange release. Metsä Board's complete Interim Report 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

Further information:
Matti Mörsky, 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 starting from 1 p.m. on 7 May 2013. A conference call held in English for investors and analysts starts at 3 p.m. (EET). Conference call participants are requested to dial in and register a few minutes prior to the start of the conference call on the following numbers:

Europe: +44 (0)20 7162 0025

US: +1 334 323 6201

The conference ID is 931452.

Metsä Board is Europe’s leading manufacturer of folding boxboard, the world’s leading manufacturer of coated white-top kraftliners and a significant supplier of paper, which offers customers high-quality cartonboard and papers for consumer and retail packaging as well as graphics industry and office end uses. The company’s sales network serves brand owners, carton printers, manufacturers of corrugated boards, printing houses, merchants and office suppliers. Metsä Board is part of Metsä Group and its shares are listed in NASDAQ OMX Helsinki. In 2012, the company’s sales totalled approximately EUR 2.1 billion. The company has approximately 3,300 employees.

 

www.metsaboard.com

 

About Us

Metsä Boardwww.metsaboard.com Metsä Board is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white kraftliners. Our lightweight paperboards are developed to provide better, safer and more sustainable solutions for consumer goods as well as retail-ready and food service applications. We work together with our customers on a global scale to innovate solutions for better consumer experiences with less environmental impact. The pure fresh fibres Metsä Board uses are a renewable resource, traceable to origin in sustainably managed northern forests. The global sales network of Metsä Board supports customers worldwide, including brand owners, retailers, converters and merchants. In 2018, the company’s sales totalled EUR 1.9 billion, and it has approximately 2,400 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki.

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