SEASONAL INCREASE IN PAPER AND PAPERBOAR
M-real Corporation Stock Exchange Release 29 April 2004 at 1.00 p.m.
1(18)
SEASONAL INCREASE IN PAPER AND PAPERBOARD DELIVERIES; OPERATING RESULT
INCHES INTO THE BLACK
In the first quarter M-real Groups operating result rose to EUR 0.8
million from a loss of EUR 18.4 million in the previous quarter
(excluding non-recurring items). The operating result was improved
mainly by the seasonal growth in the volume of paperboard and paper
deliveries and it was weakened by the lower price of fine paper as well
as the divestment of Metsä Tissue at the beginning of January. The
depreciation of the US dollar depressed the euro-denominated selling
price of both paperboard and paper.
Key figures:
- Operating result: EUR 0.8 million (a loss of 18.4 million in the
previous quarter excluding non-recurring items)
- Result before extraordinary items: a loss of EUR 28.3 million (a
loss of 47.2 million excluding non-recurring items)
- Operating result: EUR 0.8 million (a loss of 37.3 million)
- Result before extraordinary items: a loss of EUR 28.3 million (a
loss of 105.2 million)
- Earnings per share: EUR 0.17 negative (0.52 negative)
- Result for the report period: a net profit of EUR 142.4 million (a
loss of 96.0 million).
- Cash flow from operations: EUR 79.5 million (132.6)
- Return on capital employed: 0.3 per cent (2.4 per cent negative)
- Turnover: EUR 1,381.5 million (1,474.2)
- Equity ratio at the end of the period: 35.8 per cent (31.9)
- Capacity utilization rate at the paperboard mills: 89 per cent (79);
capacity utilization rate at the paper mills: 88 per cent (79)
The profitability of all the businesses improved, except for the
Offices business. The improvement in the profitability of the Cartons
business was due mainly to a seasonal increase in the delivery volume
and to the cost savings that have been realized. The profitability of
the Graphics products and Speciality papers business was improved
above all by the seasonal increase in the delivery volume of coated
fine paper and speciality paper. The profitability of the Offices
business was weakened by the fall in the average selling price. In the
Map paper merchanting business, earnings were improved by the lower
costs resulting from efficiency-boosting.
Prices of coated fine paper and coated magazine paper remained on
average at the level of the turn of the year. In the last quarter of
2003 as well as in March, M-real announced price increases of 5-7 per
cent in coated fine papers in Europe, Middle East and Asia.
The first agreements at the new prices have been made with customers,
but it is still too early to say what the final size of the price
increases will be. Since delivery volumes are also up, we consider
this a sign of a nascent revival,ö said President and CEO Jouko M.
Jaakkola, commenting on the price increases.
Demand for our main products is expected to grow as the European
economy rebounds, but second-quarter demand is nevertheless expected
to be seasonally slightly lower than it was in the first quarter. No
major change is foreseen in the average price of paper and folding
boxboard in the second quarter. Second-quarter profit before
extraordinary items is estimated to be lower compared to the first
quarter. The 200 million euro cost-savings programme that was
announced at the turn of the year is progressing according to plan,ö
said Jaakkola, commenting on the near-term outlook.
M-REAL CORPORATION
Corporate communications
For further information please contact President and CEO Jouko M.
Jaakkola, , tel. +358 10 469 4118 or Senior Vice President & CFO
Heikki Saarinen, tel. +358 10 469 4686
M-REAL CORPORATION
INTERIM REPORT 1 JANUARY 31 MARCH 2004
JANUARY-MARCH EARNINGS COMPARED WITH THE PREVIOUS QUARTER
In the first quarter M-real Groups operating result was a profit of
EUR 0.8 million (Oct.-Dec. 2003: a loss of EUR 37,3 million). The
operating result does not include non-recurring net expenses (Oct.-
Dec. 2003: 18.9 million of non-recurring net expenses).
The operating result excluding non-recurring items was a profit of
EUR 0.8 million (a loss of 18.4 million), which is 0.1 per cent of
turnover. The operating result was improved mainly by the seasonal
growth in the volume of paperboard and paper delivered. It is
estimated that the delivery volume of fine paper was also boosted by
customers increased purchases to build stocks. By contrast, the
operating result was weakened by the fall in the selling price of
uncoated fine paper as well as the divestment of Metsä Tissue in
January. The depreciation of the US dollar depressed the euro-
denominated selling price of both paper and paperboard.
With the exception of the Offices business area, the operating result
of all the business areas improved.
Deliveries of paperboard to customers totalled 265,000 tonnes
(250,000 tonnes). Because of the imbalance between supply and demand,
production had to be curtailed by 37,000 tonnes (52,000) in line with
demand. The capacity utilization rate at the mills was 89 per cent
(79).
Paper deliveries from the mills totalled 1,021,000 tonnes (955,000).
Production curtailments amounted to 110,000 tonnes (173,000 tonnes).
The capacity utilization rate at the mills was 88 per cent (79).
Foreign exchange derivatives taken out for hedging purposes resulted
in a decrease in operating profit of EUR 12.5 million (a gain of
4.6). By the end of March, the dollar had strengthened by nearly 3.2
per cent and the pound sterling by 5.5 per cent compared with the end
of the year. The average exchange rate of the dollar against the euro
was nevertheless 5.2 per cent lower and against the pound 2.5 per
cent higher than in the previous quarter.
Turnover was EUR 1,381.5 million (1,474.2). Comparable turnover was
up 5.4 per cent.
Financial income and expenses were EUR 29.1 million negative (67.9
negative). They include a net exchange rate gain of EUR 5.2 million
on financial items (9.7) as well as net interest and other financial
expenses of EUR 34.3 million (77.6). In the previous quarter, other
financial expenses included non-recurring net expenses of EUR 39.1
million for the rescheduling of loans.
Other operating income amounted to EUR 15.7 million (23.8). The sum
does not include non-recurring items.
The result before extraordinary items was a loss of EUR 28.3 million
(a loss of 105.2 million). The result before extraordinary items in
the previous quarter included non-recurring net expenses of EUR 58.0
million.
A capital gain of EUR 195 million on the sale of Metsä Tissue was
booked to extraordinary income.
The profit for the report period was EUR 142.4 million (a loss of
96.0 million). Taxes, including the change in deferred taxes, were
EUR 23.8 million (22.3).
Earnings per share were EUR 0.17 negative (0.52 negative).
The return on capital employed was 0.3 per cent (2.4 negative). The
return on equity was 5.2 per cent negative (16.3 negative).
EARNINGS IN JANUARY-MARCH COMPARED WITH THE SAME PERIOD OF 2003
The first-quarter operating result fell by EUR 66.6 million compared
with the first quarter of last year. Profitability was weakened above
all by the lower selling price of paper as well as the 16.5 per cent
fall in the exchange rate of the US dollar. The operating result was
also reduced by the divestment of Metsä Tissue in January.
The profitability of all the business areas weakened.
Deliveries of paperboard to customers totalled 265,000 tonnes
(265,000 tonnes). Production was curtailed by 37,000 tonnes (19,000)
in line with demand. The capacity utilization rate was 89 per cent
(94).
The total volume of deliveries of paper from the mills was 1,021,000
tonnes (1,009,000). Production curtailments amounted to 110,000
tonnes (94,000 tonnes). The capacity utilization rate of the paper
mills was 88 per cent (90).
Turnover was EUR 1,381.5 million (1,594.9). Turnover was lowered by
the same factors as impacted the operating result. In comparable
terms, the fall in turnover was 3.9 per cent.
The consolidated result before extraordinary items was a loss of EUR
28.3 million (a profit of 38.6 million).
PERSONNEL
The payroll at the end of March was 16,409 employees (19,636 at 31
December 2003), of whom 5,143 worked in Finland (5,835). The net
reduction in personnel was 3,227 employees. Acquisitions and
divestments resulted in a net decrease of 3,155 employees in the
reduced headcount.
The Groups personnel included 47 per cent of Metsä-Botnias
employees.
CAPITAL EXPENDITURES ON FIXED ASSETS
Capital expenditures on fixed assets totalled EUR 22 million in the
report period (Jan.Mar. 2003: 35).
The capital expenditures project for the BCTMP mill in Kaskinen is
progressing according to plans. The main terminal device selections
have been made and suppliers chosen. The earthworks in the mill area
got under way towards the end of March. The mill will have an annual
capacity of 300,000 tonnes of bleached BCTMP pulp and the mill is set
to come on stream in August 2005.
ACQUISITIONS, DIVESTMENTS AND RESTRUCTURING
At the beginning of January, a 66 per cent stake in Metsä Tissue was
sold to Metsäliitto Osuuskunta in accordance with a Letter of Intent.
In addition, 17 per cent was sold to the Tapiola Group. At the end of
January, the remaining 17 per cent was sold to Varma Mutual Pension
Insurance Company (9.86 per cent) and Sampo Life Insurance Company
Limited (7.14 per cent). The transactions were carried out on the
same terms and conditions and they were based on a debt-free value of
EUR 570 million. The after-tax capital gain on the disposals was
about EUR 173 million.
FINANCING
Interest-bearing net liabilities amounted to EUR 2,551 million at the
end of March (Dec. 2003: 3,109).
The equity ratio was 35.8 per cent (Dec. 2003: 31.9) and the gearing
ratio was 109 per cent (Dec. 2003: 137).
Liquidity is good. Liquidity at the end of March was EUR 1,696
million, of which EUR 1,551 million consisted of binding long-term
credit commitments and EUR 145 million represented liquid funds and
investments (184). In addition, to meet its short-term financing
needs the Group had at its disposal non-binding domestic and foreign
commercial paper programmes and credit facilities amounting to about
EUR 550 million.
At the end the financial period an average of 4.7 months of net
foreign currency exposure was hedged. The degree of hedging during
the report period has varied between 4 and 5 months. At the end of
the report period, about 98 per cent of the shareholders equity not
denominated in euros was hedged. At the end of the period the Groups
liabilities were tied to fixed interest rates for a period of 23
months. During the period the fixed-rate period has varied from 18 to
24 months.
SHARES
The highest price of M-reals Series B share on Helsinki Exchanges
during the January-March period was EUR 8.16 and the lowest price was
EUR 6.52. The average share price was EUR 7.21. In 2003 the average
price was EUR 7.26. The price of the Series B share was EUR 7.55 at
the end of the report period, 31 March 2004.
Turnover of the Series B share was EUR 214 million, or 21 per cent of
the shares outstanding. The market capitalization of the Series A and
B shares at 31 March 2004 totalled EUR 1,339 million.
At 31 March 2004, Metsäliitto Osuuskunta owned 38.5 per cent of M-
real Corporations shares and 64.2 per cent of the voting rights
conferred by these shares. International investors owned 33.2 per
cent of the shares.
The Board of Directors does not have valid authorizations to carry
out a share issue or issues of convertible bonds or bonds with
warrants.
DIVIDEND
M-real Corporations Annual General Meeting held on 15 March 2004
passed a resolution to pay a dividend of EUR 0.30 per share for the
2003 financial year in accordance with the proposal of the Board of
Directors. The dividend was paid out on 25 March 2004.
BOARD OF DIRECTORS AND AUDITORS
The Annual General Meeting elected the following persons to seats on
M-reals Board of Directors for a term extending up to the next
Annual General Meeting: Antti Oksanen, Arimo Uusitalo, Timo Haapanen,
Asmo Kalpala, Erkki Karmila, Runar Lillandt, Kim Gran and Antti
Tanskanen.
At its organization meeting, the Board of Directors elected Antti
Oksanen chairman and Arimo Uusitalo vice chairman.
Elected as auditors were Göran Lindell, Authorized Public Accountant,
and the firm of independent public accountants PriceWaterhouseCoopers
Oy, with Ilkka Haarlaa, M.Sc. (Econ.), Authorized Public Accountant,
acting as chief auditor and Björn Renlund, Authorized Public
Accountant, and Jouko Malinen, Authorized Public Accountant, as the
deputy auditors. The term of office of the auditors and deputy
auditors lasts until the end of the next Annual General Meeting.
NEAR-TERM OUTLOOK
European economic growth is generally expected to be better in 2004
than it was in 2003. The indicators for overall economic growth
nevertheless do not present an unambiguous picture of the future
trend, and growth forecasts have been revised downward during the
first quarter. In the United States and Asia, however, the economic
expansion has been strong and broad-based in the first part of the
year. In the United States, economic growth has so far boosted demand
for paper only a little.
Demand for M-reals main products is expected to grow as the European
economy revives. Due to seasonal factors, second-quarter demand for
the main products is nevertheless expected to be slightly lower than
it was in the first quarter. The markets for M-reals paper grades
are still characterized by oversupply, and production will have to be
curtailed in line with demand. A major change in the average price of
paper and folding boxboard is not expected to take place in the
second quarter.
M-reals second-quarter profit before extraordinary items is
estimated to be lower compared to the first quarter.
Espoo, 29 April 2004
BOARD OF DIRECTORS
BUSINESS AREAS AND MARKET TRENDS
Cartons
I 04 IV 03 III II 03 I 03 2003 IV 03-
03 I 04
change
Turnover 204.1 196.2 200.3 196.9 215.6 809.0 +4.0%
Operating result 14.0 -2.3 15.1 2.5 18.1 33.3
Operating 6.9 -1.2 7.5 1.2 8.4 4.1
result, %
Return on 6.7 -1.1 7.1 1.5 8.0 3.9
capital
employed, %
Deliveries, 265 250 246 246 265 1,007 +6.0%
1,000 t
Paperboard 253 217 238 208 250 913 +16.6%
production,
1,000 t
Capacity 89 79 87 78 94 85
utilization
rate, %
The profitability of the Cartons business improved on the previous
quarter and operating profit was EUR 14.0 million (an operating loss
of 2.3 million in Oct.-Dec. 2003). The improvement in profitability
was due mainly to a seasonal increase in the volume of deliveries
along with the cost savings that have been realized. The weakening in
the dollar lowered the average selling price of all the business
areas main product groups. The capacity utilization rate of the
paperboard machines was 89 per cent (79). The average order book at
the end of March was about two weeks.
Deliveries by west European folding boxboard producers were up 10 per
cent on the previous quarter. M-reals deliveries of folding boxboard
likewise increased by 10 per cent. The strongest growth was in
western Europe and Asia. Apart from the effect of a weaker dollar, no
major change took place in the selling price of folding boxboard.
Deliveries of linerboard were up. Price increases in the second
quarter were announced.
Fluting demand did not change significantly, but the selling prices
fell markedly. Price increases in the second quarter were announced.
The first-quarter operating result fell by about a fifth compared
with the same period a year ago. The operating result was lowered
mainly by the average fall in selling prices due to a weaker dollar.
The cost savings that have been realized, however, improved the
operating result. The delivery volume was unchanged.
Graphics products and Speciality papers
I 04 IV 03 III II 03 I 03 2003 IV 03-I
03 04
change
Turnover 591.1 572.6 578.7 574.6 622.1 2,348 +3.2%
.0
Operating 2.5 -12.8 10.0 -2.1 29.1 24.3
result
Operating 0.4 -2.2 1.7 -0.4 4.7 1.0
result, %
Return on 0.5 -1.7 1.6 -0.2 4.5 1.0
capital
employed, %
Deliveries, 767 745 729 727 763 2,965 +3.0%
1,000 t
Production, 775 708 719 718 767 2,912 +9.5%
1,000 t
Capacity 87 80 83 83 89 84
utilization
rate, %
The first-quarter operating result of the Graphics products and
Speciality papers business was EUR 2.5 million (an operating loss of
12.8 million in Oct.-Dec. 2003). The operating result was improved
mainly by the seasonal growth in the delivery volume, which was also
boosted by customers increased purchases to top up stocks. In
addition, the previous quarters result was burdened by annual
maintenance shutdowns and the costs resulting from them as well as by
a further EUR 6 million of non-recurring expenses. The depreciation
of the US dollar depressed the euro-denominated selling price.
Deliveries by west European producers of coated fine paper rose by 7
per cent and deliveries by producers of coated magazine paper fell by
11 per cent. M-reals delivery volume of coated fine paper rose by 6
per cent and the volume of coated magazine paper fell by 11 per cent.
M-reals delivery volume for speciality paper rose by 12 per cent.
The capacity utilization rate of the paper machines was 87 per cent
(80). The order book at the end of March was just over 2 weeks.
Prices of coated fine paper and coated magazine paper remained on
average at the level at the turn of the year. The implementation of
the announced price increases in Europe, Middle East and Asia of 5-7
procent have been started from the beginning of April. The first
agreements at the new prices have been made with customers. Prices of
speciality papers were on average at the previous quarters level.
Compared with the same period of last year, the first-quarter
operating result was weakened by the 10 per cent fall in the average
price of coated fine paper and the 4 per cent fall in the price of
coated magazine paper. The average price of speciality paper also
fell. The weakening in the dollar cut into the average selling price
of all the main product groups. The delivery volume of coated fine
paper rose by 4 per cent and that of speciality papers by 2 per cent.
Delivery volums of coated magazine paper dropped by 12 per cent..
Offices
I 04 IV III II I 2003 IV 03-
03 03 03 03 I 04
change
Turnover 175. 169. 151. 170. 191. 682. +13.7%
8 5 3 5 6 9
Operating 3.5 8.6 3.9 13.9 21.8 48.2 -59.3%
profit
Operating 2.0 5.1 2.6 8.2 11.4 7.1
profit, %
Return on 2.1 4.1 2.0 5.7 9.4 5.4
capital
employed, %
Deliveries, 254 209 207 229 246 892 +21.5%
1,000 t
Production, 247 203 200 233 237 873 +21.6%
1,000 t
Capacity 92 75 72 89 93 82
utilization
rate, %
The profitability of the Offices business declined substantially on
the previous quarter despite the increased delivery volume. Operating
profit was EUR 3.5 million (8.6). Profitability was weakened by the 5
per cent fall in the average selling price.
Deliveries by west European producers of uncoated fine paper rose by
8 per cent. The delivery volume of products supplies by the Offices
business was up 21 per cent on the previous quarters exceptionally
low level. The growth was partially seasonal in nature, with the
delivery volume of sheeted products showing the best growth. The
capacity utilization rate of the paper machines was 92 per cent (75).
The order book at the end of the year was just over three weeks.
Compared with the same period of last year, the first-quarter
operating result was weakened by the 11 per cent fall in the average
price. The delivery volume rose by 3 per cent.
Map Merchant Group
I 04 IV 03 III II I 03 2003 IV 03-
03 03 I 04
change
Turnover 354.0 347.6 332.5 345.0 367.5 1,392 +1.8%
.6
Operating result 3.8 0.4 -2.7 3.4 5.4 6.5
Operating result, 1.1 0.1 -0.8 1.0 1.5 0.5
%
Return on capital 4.6 0.4 -2.3 4.0 5.8 2.0
employed, %
Deliveries, 1,000 333 327 312 317 328 1,283 +1.8%
t
The operating result of the Map paper merchanting business was a
profit of EUR 3.8 million (0.4). Profitability was improved by the
lower costs resulting from efficiency-boosting. The delivery volume
showed slight seasonal growth.
First-quarter earnings were on a par with the same period of last
year.
Espoo, 29 April 2004
BOARD OF DIRECTORS
M-REALGROUP (all figures unaudited)
PROFIT AND LOSS ACCOUNT 1-3/04 % 1-3/03 %
(EUR million)
Turnover 1 381.5 100.0 1 594.9 100.0
Interest in
associated companies -1.9 -3.0
Other operating 15.7 12.1
income
Operating expenses 1 288.0 1 417.1
Depreciation 106.5 119.5
Operating profit 0.8 0.1 67.4 4.2
Net exchange gains/ 5.2 6.2
losses
Other financial -34.3 -35.0
income and expenses
Profit before -28.3 -2.1 38.6 2.4
extraordinary items
Extraordinary items 195.0 0.0
Profit before taxes and
minority interest 166.7 12.0 38.6 2.4
Taxes -23.8 -17.3
Minority interest -0.5 -0.3
Profit for the period 142.4 10.3 21.0 1.3
PROFIT AND LOSS ACCOUNT Change % 1-12/03 %
(EUR million)
Turnover -213.4 -13.4 6 044.1 100.0
Interest in
associated companies 1.1 -5.2
Other operating income 3.6 73.8
Operating expenses 129.1 5 557.9
Depreciation 13.0 481.0
Operating profit -66.6 -98.8 73.8 1.2
Net exchange gains/ -1.0 20.7
losses
Other financial income 0.7 -174.7
and expenses
Profit before -66.9 -173.3 -80.2 -1.3
extraordinary items
Extraordinary items 195.0 -15.1
Profit before taxes and
minority interest 128.1 331.9 -95.3 -1.6
Taxes -6.5 -0.7
Minority interest -0.2 1.0
Profit for the period 121.4 578.1 -95.0 -1.6
PROFIT AND LOSS ACCOUNT 10-12/03 %
(EUR million)
Turnover 1 474.2 100.0
Interest in
associated companies -4.1
Other operating income 23.8
Operating expenses 1 410.5
Depreciation 120.7
Operating profit -37.3 -2.5
Net exchange gains/ 9.7
losses
Other financial income -77.6
and expenses
Profit before extraordinary -105.2 -7.1
items
Extraordinary items -15.1
Profit before taxes and
minority interest -120.3 -8.2
Taxes 22.3
Minority interest 2.0
Profit for the period -96.0 -6.5
Taxes include taxes corresponding to profit for the period.
M-REALGROUP (all figures unaudited)
BALANCE SHEET 3/2004 % 3/2003 %
(EUR million)
Assets
Fixed assets 4 355.1 66.5 4 942.3 67.5
Current assets
Inventories 724.9 11.1 813.7 11.1
Other current assets 1 324.7 20.2 1 419.6 19.4
Liquid funds 145.4 2.2 142.0 2.0
Total 6 550.1 100.0 7 317.6 100.0
Liabilities
Shareholders´ equity 2 328.0 35.5 2 363.7 32.3
Minority interest 18.9 0.3 23.7 0.3
Provisions for liabilities 64.6 1.0 64.0 0.9
and charges
Long-term liabilities 2 276.8 34.8 2 994.9 40.9
Short-term liabilities 1 861.8 28.4 1 871.3 25.6
Total 6 550.1 100.0 7 317.6 100.0
BALANCE SHEET 12/2003 %
(EUR million)
Assets
Fixed assets 4 768.7 67.1
Current assets
Inventories 802.0 11.3
Other current assets 1 351.9 19.0
Liquid funds 183.6 2.6
Total 7 106.2 100.0
Liabilities
Shareholders´ equity 2 245.3 31.6
Minority interest 18.9 0.3
Provisions for liabilities 77.4 1.1
and charges
Long-term liabilities 3 030.6 42.6
Short-term liabilities 1 734.0 24.4
Total 7 106.2 100.0
M-REALGROUP (all figures unaudited)
CASH FLOW STATEMENTS 1-3/04 1-3/03 1-12/03 10-12/03
(EUR million)
Profit before extraordinary -28.3 38.6 -80.2 -105.2
items
Depreciation 106.5 119.5 481.0 120.7
Taxation -3.2 -24.2 -19.0 19.7
Other changes -5.2 15.8 35.5 27.3
Funds from operations 69.8 149.7 417.3 62.5
Change in working capital 9.7 3.9 7.8 70.1
Cash flow from operations 79.5 153.6 425.1 132.6
Gross capital -21.9 -188.0 -396.7 -106.8
expenditures
Disposal and other changes 425.9 0.0 -2.5 -2.5
in fixed assets
Cash flow after capital 483.5 -34.4 25.9 23.3
expenditure
Interest-bearing net debt of 127.9 -8.5 -8.5 0.0
companies acquired and
divested
Dividend -53.7 -107.4 -107.4 0.0
Change in interest-bearing 557.7 -150.3 -90.0 23.3
liabilities
(+ decrease / - increase)
M-REALGROUP (all figures unaudited)
KEY FIGURES 1-3/04 1-3/03 1-12/03 10-12/03
Earnings per share. EUR -0.17 0.12 -0.51 -0.52
Return on capital employed. % 0.3 5.0 1.6 -2.4
Return on equity. % -5.2 3.5 -3.8 -16.3
Gross capital expenditures. 22 188 397 107
EUR million 1)
Personnel. average 16 435 20 216 20 372 19 801
3/04 3/03 12/03
Shareholders´ equity per 13.01 13.20 12.54
share. EUR
Equity ratio. % 35.8 32.6 31.9
Gearing ratio. % 109 133 137
1) Excl. interest-bearing net debt of acquired companies.
Securities and guarantees. EUR 3/04 3/03 12/03
million
For own loans 223 482 287
For associated companies 0 0 1
For affiliated companies 5 26 5
For others 11 10 15
Total 239 518 308
Open derivative contracts. Gross Gross Gross
EUR million amount amount amount
3/04 3/03 12/03
Interest rate derivatives 13 620 8 935 13 017
Currency derivatives 7 622 7 592 4 601
Total 21 242 16 527 17 618
The fair value of open derivative contracts calculated at market
value at the end of the
review period was -40,5 EUR million (-11,9).
M-REALGROUP Quarterly data
TURNOVER
EUR Million QI 04 QI 03 I 04 IV 03 III II 03 I 03
03
Cartons 204.1 215.6 204.1 196.2 200.3 196.9 215.6
Graphics 591.1 622.1 591.1 572.6 578.7 574.6 622.1
products
and
Speciality
papers
Offices 175.8 191.6 175.8 169.5 151.3 170.5 191.6
Map Merchant 354.0 367.5 354.0 347.6 332.5 345.0 367.5
Group
Internal 56.5 198.1 56.5 188.3 204.4 220.8 198.1
sales
and other
operations
GROUP TOTAL 1 1594. 1 1 1 1 1
381.5 9 381.5 474.2 467.2 507.8 594.9
TURNOVER
EUR Million IV 02 III 02 II 02
Cartons 212.5 216.6 218.9
Graphics 586.6 609.7 619.5
products
and Speciality
papers
Offices 200.8 183.4 183.7
Map Merchant 375.0 371.7 387.1
Group
Internal sales 212.4 222.7 227.5
and other
operations
GROUP TOTAL 1 587.3 1 604.1 1 636.7
OPERATING
PROFIT
AND RESULT
EUR Million QI 04 QI 03 I 04 IV 03 III II 03 I 03
03
Cartons 14.0 18.1 14.0 -2.3 15.1 2.5 18.1
Graphics 2.5 29.1 2.5 -12.8 10.0 -2.1 29.1
products
and
Speciality
papers
Offices 3.5 21.8 3.5 8.6 3.9 13.9 21.8
Map 3.8 5.4 3.8 0.4 -2.7 3.4 5.4
Merchant
Group
Other -23.0 -7.0 -23.0 -31.2 2.6 -2.9 -7.0
operations
OPERATING 0.8 67.4 0.8 -37.3 28.9 14.8 67.4
PROFIT
% of 0.1 4.2 0.1 -2.5 2.0 1.0 4.2
turnover
Net 5.2 6.2 5.2 9.7 -0.5 5.3 6.2
exchange
gains/losse
s
Other -34.3 -35.0 -34.3 -77.6 -32.3 -29.8 -35.0
financial
income
and
expenses
PROFIT -28.3 -28.3
BEFORE
EXTRAORDINA 38.6 - -3.9 -9.7 38.6
RY 105.2
ITEMS
% of -2.1 2.4 -2.1 -7.1 -0.3 -0.6 2.4
turnover
OPERATING PROFIT
AND RESULT
EUR Million IV 02 III 02 II 02
Cartons 6.7 24.2 18.7
Graphics 25.7 40.5 27.8
products
and Speciality
papers
Offices 19.6 28.3 26.1
Map Merchant -9.3 -5.9 -0.9
Group
Other operations 8.0 10.0 -14.0
OPERATING PROFIT 50.7 97.1 57.7
% of turnover 3.2 6.1 3.5
Net exchange 5.0 -16.9 0.2
gains/losses
Other financial -45.6 -38.7 -37.2
income
and expenses
PROFIT BEFORE 20.7
EXTRAORDINARY
ITEMS 10.1 41.5
% of turnover 0.6 2.6 1.3
OPERATING
PROFIT %
QI QI I 04 IV 03 III II 03 I 03
2004 2003 03
Cartons 6.9 8.4 6.9 -1.2 7.5 1.2 8.4
Graphics 0.4 4.7 0.4 -2.2 1.7 -0.4 4.7
products
and
Speciality
papers
Offices 2.0 11.4 2.0 5.1 2.6 8.2 11.4
Map 1.1 1.5 1.1 0.1 -0.8 1.0 1.5
Merchant
Group
GROUP TOTAL 0.1 4.2 0.1 -2.5 2.0 1.0 4.2
OPERATING
PROFIT %
IV 02 III 02 II 02
Cartons 3.2 11.2 8.5
Graphics 4.4 6.6 4.5
products and
Speciality
papers
Offices 9.8 15.4 14.2
Map Merchant -2.5 -1.6 -0.2
Group
GROUP TOTAL 3.2 6.1 3.5
M-REALGROUP
RETURN ON CAPITAL
EMPLOYED, %
QI 2004 2003 2002
Cartons 6.7 3.9 9.4
Graphics products and 0.5 1.0 5.5
Speciality papers
Offices 2.1 5.4 11.0
Map Merchant Group 4.6 2.0 -3.0
GROUP TOTAL 0.3 1.6 5.8
CAPITAL EMPLOYED. 31.3.2004 31.12.2003 12/01
EUR Million
Cartons 878.3 882.1 921.6
Graphics products and 2 843.0 2 849.7 2 893.1
Speciality papers
Offices 841.7 839.0 973.7
Map Merchant Group 393.6 383.2 410.4
Other assets 230.2 734.4 698.3
GROUP TOTAL 5 186.8 5 688.4 5 897.1
PERSONNEL QI QI Year
AVERAGE 2004 2003 2003
Cartons 2 763 2 906 2 970
Graphics products and 6 633 7 013 6 957
Speciality papers
Offices 2 038 2 117 2 107
Map Merchant Group 2 512 2 591 2 554
Other operations 2 489 5 589 5 784
GROUP TOTAL 16 435 20 216 20 372
M-REALGROUP
DELIVERIES
1000 tons QI QI I 04 IV 03 III II 03 I 03
2004 2003 03
Cartons 265 265 265 250 246 246 265
Graphics products and 767 763 767 745 729 727 763
Speciality papers
Offices 254 246 254 209 207 229 246
Paper businesses total 1021 1009 1021 955 937 956 1009
Map Merchant Group 333 328 333 327 312 317 328
DELIVERIES
1000 tons IV 02 III II 02
02
Cartons 270 268 272
Graphics products and 717 687 709
Speciality papers
Offices 211 218 223
Paper businesses total 928 905 932
Map Merchant Group 317 307 314
PRODUCTION
1000 tons QI QI I 04 IV 03 III 03 II 03 I 03
2004 2003
Cartons 253 250 253 217 238 208 250
Graphics products and 775 767 775 708 719 718 767
Speciality papers
Offices 247 237 247 203 200 233 237
Paper mills total 1022 1004 1022 912 919 950 1004
Metsä-Botnia´s pulp 300 280 300 270 305 305 280
M-real´s pulp 381 366 381 368 350 350 366
PRODUCTION
1000 tons IV 02 III II 02
02
Cartons 247 249 240
Graphics products and 713 671 699
Speciality papers 1
Offices 207 231 233
Paper mills total 921 902 931
Metsä-Botnia´s pulp 2 249 294 250
M-real´s pulp 358 340 342
OPERATING RATES, %
QI QI
2004 2003 I 04 IV III II I 03
03 03 03
Cartons 89 94 89 79 87 78 94
Graphics products 87 89 87 80 83 83 89
and
Speciality papers
Offices 92 93 92 75 72 89 93
Paper mills total 88 90 88 79 80 84 90
OPERATING RATES, %
IV 02 III II 02
02
Cartons 93 94 89
Graphics products and 82 79 81
Speciality papers
Offices 79 88 91
Paper mills total 82 81 83
1) Includes 50 % of the production in MD Papier (until 30.6.2001) and
Albbruck (until 30.6.2002).
2) Equals to M-real´s owernship (47 %).
M-REAL CORPORATION
Jouko M. Jaakkola
President and CEO
