METSÄLIITTO GROUP RELEASE
METSÄLIITTO GROUP 2004
Wood consumption by the Metsäliitto Group companies in 2004 was
greater than anticipated. Deliveries to the mills were handled as
normal during the first half of the year, but the wet autumn, coupled
with sluggish wood trading, pushed reserves down to exceptionally low
levels. Special arrangements were made for several months during the
autumn to supply customers needing fresh spruce pulpwood and spruce
logs.
Metsäliitto purchased 16.9 million cubic metres of wood during the
year (16.1 million in 2003), corresponding to about 95 per cent of
the target. Altogether 24.5 million cubic metres of wood (24.3) was
supplied to customers. This comprised 20.5 million cubic metres of
roundwood (20.2) and 4.0 million cubic metres of chips and sawdust
(4.0).
Metsäliitto Cooperative produced a turnover of EUR 1,155 million
(1,154). Operating profit was 25.4 million, 2.2 per cent of turnover
(25.5 million and 2.2%). Profit before extraordinary items was EUR
89.0 million (104.4). The figure includes dividend income of EUR 62.8
million (81.9).
The wood products group Finnforest improved both its turnover and
financial result on the previous year. Sales of Kerto products
continued to be good and the mills operated at full capacity. Brisk
building activity in North America boosted demand for conifer plywood
in the second half of the year. The market and prices for birch
plywood also moved in a positive direction.
Output by the sawmills in Finland was about the same as the year
before, but over-supply kept the relationship between sales prices
and raw material costs unfavourable. Prices for whitewood goods were
some two per cent lower than the year before, while redwood prices
were about six per cent lower.
Finnforests turnover for 2004 was EUR 1,924 million (1,791).
Operating profit was EUR 37.5 million, 1.9 per cent of turnover (8.6
million and 0.5%) and profit before extraordinary items was EUR 3.5
million (-25.1). Other operating income was EUR 37.0 million (10.0).
Despite intensified competition in European tissue markets, Metsä
Tissue was able to increase both sales and market shares. Some of the
effect of higher raw material and energy costs was offset by raising
business efficiency. Metsä Tissue booked a turnover of EUR 685
million and an operating profit of EUR 27.2 million. On a comparative
basis, operating profit was about EUR 6.5 million down on the
previous year.
M-reals profitability was adversely affected mainly by low paper
prices, the strengthening of the euro against the dollar by an
average of some 10 per cent, and by non-recurring provisions and
asset value write-downs. Prices for coated fine paper fell by an
average of 5 per cent on 2003, while those for uncoated paper were
down by 9 per cent. M-reals paper machines operated at 88 per cent
of capacity (83) and board machines at 89 per cent of capacity (84).
M-reals turnover was EUR 5,460 million (6,044) and the result from
operations EUR -74.7 million (+73.8). The figure includes EUR 72.7
million in net non-recurring expenses (14.7). A further EUR 20.1
million in costs relating to the share issue and loan arrangements
has been entered under financial expenses.
The loss before extraordinary items was EUR 209.0 million (-80.2).
Excluding non-recurring items, the loss was EUR 119.1 million
(-37.5). Extraordinary income includes a capital gain of EUR 194
million from the sale of Metsä Tissue. Before taxes and minority
interest there was a loss of EUR 10.8 million (-95.3).
A higher capacity utilization rate, growth in sales volumes and
higher pulp prices helped Botnia return better profitability.
Compared with 2003, market prices in foreign currencies averaged 17
per cent higher for softwood pulp and 2 per cent higher for hardwood
pulp. The pulp mills operated at 92.4 per cent of capacity (91.9).
The impact of the rise in pulp prices was reduced by the trend in the
exchange rate for the dollar.
Botnia booked a turnover of EUR 1,063 million (1,006), an operating
profit of EUR 133.2 million (84.2) and profit before extraordinary
items of EUR 128.7 million (78.9).
Turnover
Turnover for the Metsäliitto Group was EUR 8,554 million, some three
per cent up on the previous years figure of EUR 8,318 million.
Operations in Finland contributed EUR 1,022 million of turnover
(1,017), while exports and foreign subsidiaries accounted for EUR
7,532 million (7,301).
Financial results
The Groups operating profit was EUR 62,0 million, 0.7 per cent of
turnover (151.1 million and 1.8%). The smaller operating profit is
due primarily to the fall in sales prices for paper and to the
strengthening of the euro by some 10 per cent against the dollar.
Other income from operations was EUR 144.7 million (105.0).
Operating profit includes a non-recurring EUR 53.5 million write-down
in the fixed asset value of the Savon Sellu fluting mill and Reflex
paper mill in Germany. A provision of EUR 24 million was made for the
cost of the profitability improvement programme introduced at the
Zanders mill. In connection with the sale of the Savon Sellu business
EUR 8.4 million was returned to the value of fixed assets.
Operating profit also includes a Group reserve of EUR 14.3 million
recognized as income in connection with M-reals purchase of Kemiart
Liners Oy shares, together with a capital gain of EUR 19.0 million
realized from the sale of Metsä Tissue.
Net financial expenses were EUR 199.7 million, 2.3 per cent of
turnover (190.9 million and 2.3%). Financial income was EUR 30.2
million (38.4) and financial expenses were EUR 229.9 million (229.3).
Financial expenses includes costs of EUR 17.2 million relating to M-
reals rights issue and costs of EUR 2.9 million relating to the EUR
500 million revolving credit facility agreement.
In January 2004, M-real sold Metsä Tissue to a number of insurance
companies (34%) and Metsäliitto Cooperative (66%). M-real booked
extraordinary income of EUR 194 million on the disposal of this
business. As Metsä Tissue remains a subsidiary of Metsäliitto
Cooperative, the income corresponding to Metsäliittos holding has
been eliminated in the Metsäliitto Groups consolidated accounts.
The Metsäliitto Groups loss before extraordinary items was EUR 137.7
million (-39.8). Extraordinary items totalled 4.1 million (-15.1).
The loss before taxes and minority interest was EUR 133.6 million
(-54.8). Direct taxes, including the change in deferred tax
liability, were EUR 1.0 million (20.6). The cut in the rate of
corporation tax in Finland in June from 29 to 26 per cent reduced
deferred tax liability by a total of EUR 28.9 million. Minority
interest of the loss was EUR 113.6 million (58.9) and the loss for
the financial period was EUR 21.0 million (-16.5).
The return on capital employed was 1.2 per cent (2.5) and the return
on equity -4.7 per cent (-2.4).
Financing
The equity ratio improved and the gearing ratio fell. The equity
ratio was 35.0 per cent at the start of the year and 37.3 per cent at
the end. Net interest-bearing liabilities fell by EUR 337 million to
EUR 3,132 million in December (3,469). The gearing ratio was 100 per
cent (117).
Liquidity was good throughout the year. In line with the Groups
financial strategy, the amount of liquid funds and investments was
kept low and liquidity was maintained through the use of committed
credit lines.
At the end of the year, liquid assets and investments totalled EUR
302 million (215). The Group also had committed credit facilities not
shown in the balance sheet totalling EUR 1,813 million (1,363). For
its short-term financing needs, the Group also has around EUR 0.6
billion available in non-committed domestic and foreign commercial
paper programmes and forward credits (0.8).
Metsäliitto Cooperatives members capital increased by EUR 83.4
million during the year (77.8). Members capital rose by EUR 24.9
million, additional members capital A by EUR 48.1 million and
additional members capital B by EUR 10.4 million.
Main financial events
Between 15 September and 1 October 2004, M-real issued roughly 149
million new Series B shares at a subscription price of EUR 3 per
share. The issue was fully subscribed and resulted in a net increase
in equity of some EUR 430 million. Metsäliitto Cooperative bought
shares for approximately EUR 173 million, i.e. in proportion to its
existing shareholding.
In November, Moodys Investors Services lowered M-reals credit
rating to Ba2, outlook stable.
In December, M-real signed a EUR 500 million syndicated revolving
credit facility agreement. The new facility replaces that of EUR 700
million signed in 2000. The facility caries a term of five years and
has been arranged with 21 banks.
Capital expenditure
Construction by M-real of a BCTMP mill at Kaskinen is going ahead as
planned. Site excavation began in March 2004, construction of the
mill in July, and start-up will be in August 2005. The mill will have
a capacity of 300,000 t/a of bleached chemi-thermomechanical pulp.
The total cost of the investment is around EUR 180 million.
Botnias Svir Timber sawmill investment in northwest Russia will be
completed by the end of this year. The sawmill, which is being built
in the town of Podporozhje, will have an annual production capacity
of 200,000 cubic metres and will cost around EUR 50 million.
Finnforests housing module plant in Hartola was completed in the
autumn. The decision to start production had been made in October
2003.
In autumn 2003, Botnia began exploring the possibility of starting
pulp production in Uruguay. Environmental and socioeconomic impact
studies for the mill were completed in March 2004. In October, the
Uruguayan government granted the project free trade zone status,
which ensures the projects customs and taxation treatment. A final
decision on construction of a mill to produce around one million t/a
of bleached eucalyptus pulp will be made in the first half of this
year. The estimated cost of the investment is USD 1 billion.
Gross capital expenditure on fixed assets by the Metsäliitto Group in
2004 was EUR 379 million (484).
Acquisitions and disposals
At the beginning of January, Metsäliitto Cooperative bought 66 per
cent and Tapiola Group 17 per cent of Metsä Tissue from M-real. At
the end of January, M-real sold the remaining 17 per cent to Varma
Mutual Pension Insurance Company (9.86%) and Sampo Life Insurance
Company Ltd (7.14%).
In February, Finnforest bought the German company Merk GmbH, which
specializes in the planning and implementation of wood construction
projects. Its product range comprises wood-based panels, Kerto
laminated veneer lumber, I-joists, glulam and other composite
building materials.
In accordance with a letter of intent signed in October 2003, Are-
Group became part of Moelvens sawmilling division in January 2004.
The acquisition raised Moelvens further processing capacity by
240,000 cubic metres and sawmilling capacity by 350,000 cubic metres.
In March, Moelven bought the building modules manufacturer Mobilarum
AB, which has two production plants in Sweden.
At the beginning of June, Finnforest sold 9.9 per cent and
Metsäliitto Cooperative 2.1 per cent of the shares of Moelven
Industrier ASA. Moelvens new owners are the Norwegian forest owners
associations Haldenvassdraget (3.0%) and Agder-Telemark (4.5%). The
forest owners associations Glommen and Mjøsen raised their stakes in
the company. Following these transactions, Finnforest owns 51.0 per
cent of Moelvens shares and Metsäliitto Cooperative 14.15 per cent.
Also in June, the Metsäliitto subsidiary Thomesto acquired 44 per
cent of the wood procurement company Vologodskie Lesopromyshlenneki.
The company is one of the biggest procurers of wood raw material in
the Vologda region of northwest Russia, and has supplied over 600,000
cubic metres of wood to Finland in recent years.
In August, M-real acquired Metsäliitto Cooperatives (6%) and UPM-
Kymmenes (47%) stakes in Kemiart Liners Oy. The purchase price of
the shares was about EUR 13 million. M-reals net interest-bearing
debt increased by roughly EUR 23 million.
At the end of September, M-real sold Price & Pierce trading house to
Gould Paper Corporation. The sale had no material financial impact on
M-real.
Integration of the Polish converter Krapex Sp.zoo was completed when
Metsä Tissue acquired the companys entire share capital in autumn
2004. At the same time, all business operations in Poland were
combined into a single company named Metsä Tissue S.A.
In October, Finnforest sold its poles and Luxiwood business in Kolho
to Iivari Mononen Oy. The sale did not include the poles business of
Finnforest BBH Ltd in Great Britain or Kolhos impregnation business.
In December, M-real signed an agreement to sell its Savon Sellu
business. The business was bought by an international consortium of
private investors and by Dermot F. Smurfit. The price was around EUR
20 million, including fixed assets worth some EUR 12 million. The
deal came into effect in January 2005.
On 26 October 2004, Metsäliitto Cooperative announced it would raise
its shareholding in Vapo Oy to 49.9 per cent by purchasing about 16.6
per cent of that companys shares. At the same time, Finnforest sold
its seven power plants generating electricity and process and
district heat to a new company in which Vapo holds a majority of the
shares and Finnforest under one-fifth. Metsäliitto sold its Biowatti
Oy pellets business to Vapo and its wood-based fuels business to
Biowattis management.
The Finnish competition authority approved the Vapo deal on certain
conditions at the beginning of January, and the deal was confirmed on
20 January 2005.
On 30 December 2004, Metsäliitto Cooperative, the Central Union of
Agricultural Producers and Forest Owners (MTK) and Suomi Mutual Life
Assurance Company announced they would purchase M-reals forest for
EUR 172 million. The forest in question, covering some 120,000
hectares, will be transferred to a new company in which Metsäliitto
will own 49.9 per cent, Suomi Mutual Life Assurance Company 39.7 per
cent and MTK 10.4 per cent. The sale was completed on 31 January
2005.
Personnel
Metsäliitto and its subsidiaries had an average total of 29,515
employees in 2004 (30,056). Of these, 9,694 worked in Finland
(10,038) and 19,821 abroad (20,027). The number of employees at the
end of the year was 28,783 (29,173), of whom 19,587 were located
outside Finland (19,498). The parent company had an average of 819
employees (878).
On 24 May 2004, Metsäliittos Supervisory Board appointed Kari Jordan
to the post of President and CEO of Metsäliitto Cooperative and
deputy to the Groups President and CEO with effect from 1 January
2005. Mr Jordan will take over as Group President and CEO on 1
January 2006, with the present incumbent, Antti Oksanen, due to
retire in summer 2006.
On 10 June 2004, the Board of Directors of M-real Corporation
appointed Hannu Anttila as the companys new President and CEO with
effect from 1 January 2005, when the present holder of the post,
Jouko M. Jaakkola, retired.
Inspections by the competition authority
On 25 May 2004, representatives of Finlands competition authority
conducted inspections, without notice, at the premises of several
forest products companies, including those of Metsäliitto Cooperative
and Stora Enso Oyj. The inspections were in response to information
supplied to the authority on 3 May 2004 by UPM-Kymmene Corporation.
The purpose of the inspections was to determine whether the forest
products companies in question had exchanged confidential information
concerning the purchasing prices of wood raw material, and had
discussed ways of limiting competition between these companies over
prices on the market for wood raw material.
The European Commissions competition authority also carried out
inspections at the premises of M-real Corporation. These concerned
ongoing investigations of alleged collaboration between competing
suppliers of fine paper. Several class action suits have been brought
against M-real in the United States in connection with this.
Investigations into the cartels concerning wood trading and the paper
industry are still going on. The Metsäliitto Group has made no
provisions in its accounts relating to the above investigations.
IAS / IFRS
On 7 June 2002, the European Commission adopted a proposed regulation
under which publicly quoted companies registered in the European
Union would have to produce consolidated accounts under International
Accounting Standards (IAS) for 2005 at the latest.
The Metsäliitto Group began making preparations for the change to IAS
in autumn 2001. The work progressed as planned, and the Groups
consolidated accounts will be produced in compliance with
International Financial Reporting Standards (IFRS) from the beginning
of 2005.
In April, the Metsäliitto Group will publish a bulletin explaining
the effects of the transition to IFRS.
OUTLOOK
The recovery of the European economy in 2004 was weaker than
predicted. The main retarding factors were the rise in raw material
prices and the rapid strengthening of the euro against the dollar.
Demand for forest products improved towards the end of 2004. This
provided an opportunity to raise prices for certain products. Further
rises in paper and board prices are expected in 2005. However, M-
real's first-quarter result before taxes and excluding non-recurring
items is expected to show a small loss.
Capacity utilization rates at pulp mills were high last year. The
market for Botnias products is expected to remain favourable in the
near future.
Capacity utilization in forest industry is forecast to remain high. A
busy year is therefore anticipated for wood trading. Metsäliittos
purchasing target from private forests in 2005 is 17.7 million cubic
metres.
The wood products group Finnforest returned a positive financial
result thanks to gains from fixed asset sales. With the building
market showing slight growth, a positive result is again possible
this year. Difficulties affecting the traditional sawn timber
business are likely to continue, however, and a return to
profitability in the near future appears unlikely.
Increasing competition and higher raw material and energy costs were
the main features of tissue markets in 2004. Metsä Tissues goals
this year are to raise turnover and keep profitability at a
satisfactory level.
The Finnish forest industry has behind it four poor years, the last
of which was financially hard for the Metsäliitto Group. In terms of
financial results, the most critical factors continue to be sales
prices for paper and board and the strength of the euro against the
dollar.
The Group has made substantial reorganizations and introduced new
improvement programmes. Special attention this year will be given to
improving cost-effectiveness and increasing profitability.
Espoo, February 2005
BOARD OF DIRECTORS
For more information, please contact:
Pekka Kivelä, Senior VP, Communications, tel. +358 1046 94545
M-real and Finnforest publish their own financial reviews.
LOSS IN 2004 FOCUS ON IMPROVING COST-EFFECTIVENESS
President and CEO Kari Jordan: Last year did not fully come up to
expectations. Turnover rose, the equity ratio improved and the
gearing ratio fell, but the financial result was below that for last
year. The main reasons were the low sales prices for paper, the
stronger euro and non-recurring items.
Considerable reorganizations were made in the Metsäliitto Groups
companies last year with the aim of clarifying financial
accountability, decision-making and business operations. Measures
were also introduced to improve efficiency and profitability. Special
attention this year will be given to improving cost-effectiveness and
profitability.
(all figures are unaudited)
Turnover Operating profit
MEUR 2004 2003 2002 2004 2003 2002
Metsäliitto
Cooperative 1,155 1,154 1,096 25.4 25.5 25.8
Thomesto 426 375 365 3.0 7.6 5.2
Biowatti 62 55 46 0.4 4.8 4.2
Finnforest 1,924 1,791 1,811 37.5 8.6 34.9
Metsä Tissue* 685 27,2
-internal sales
-631 -638 -613
Total 3,621 2,737 2,705 93.5 46.5 70.1
M-real 5,460 6,044 6,564 -74.7 73.8 324.3
Other &
internal items -527 -463 -401 43.2 30.8 19.1
METSÄLIITTO
GROUP 8,554 8,318 8,868 62.0 151.1 413.5
* Metsä Tissue´s figures for 2002 and 2003 inculuded in M-real´s
figures
IMPROVED EQUITY RATIO AND LOWER GEARING RATIO
Turnover for the Metsäliitto Group was EUR 8,554 million, some three
per cent up on the previous years figure of EUR 8,318 million.
Operating profit was EUR 62.0 million (151.1). The loss before
extraordinary items was EUR 137.7 million (-39.8) and the loss for
the year was 21.0 million (-16.5).
The Groups equity ratio improved to 37.3 per cent and the gearing
ratio fell to 100 per cent (35.0% and 117%, respectively, at 31
December 2003). Interest-bearing net liabilities fell by EUR 337
million to stand at EUR 3,132 million at year-end (3,469).
WOOD DELIVERIES UP
Metsäliitto Cooperatives turnover and operating profit were similar
to those for 2003. Turnover was EUR 1,155 million (1,154) and
operating profit EUR 25.4 million (25.5). Before extraordinary items
there was a profit of EUR 89.0 million (104.4). The figure includes
dividend income of EUR 62.8 million (81.9).
Metsäliitto purchased a total of 16.9 million cubic metres of wood in
2004 (16.1). Total deliveries to customers were 24.5 million cubic
metres (24.3), comprising 20.5 million cubic metres of roundwood
(20.2).
Finnforests turnover rose 7 per cent to EUR 1,924 million (1,791).
Operating profit was EUR 37.5 million (8.6), the improvement being
attributable mainly to gains on fixed assets sales. The result before
extraordinary items was EUR 3.5 million (-25.1).
The markets for conifer and birch plywoods made positive progress in
the second half of the year. Demand for Kerto LVL, I-joists and
particleboard also improved. Sawn timber imports into Finland were
about the same as in 2003. Supply and demand for whitewood goods were
in balance, but the market for redwood was over-supplied.
Metsä Tissue produced a turnover of EUR 685 million and an operating
profit of EUR 27.2 million. On a comparative basis, operating profit
was about EUR 6.5 million down on the year before. Metsä Tissues
markets were characterized by price competition and higher prices for
raw materials and energy.
MORE CAPACITY IN USE
M-real booked a turnover of EUR 5,460 million (6,044) and a result on
operations of EUR -74.7 million (+73.8). The result was affected by
low sales prices for paper and by the strengthening by around 10 per
cent of the euro against the dollar. M-reals operating profit
includes net non-recurring costs of EUR 72.7 million. Costs of EUR
20.1 million relating to the share issue and loan arrangements were
entered under financial expenses. The loss before extraordinary items
was EUR 209.0 million (-80.2).
The groups paper mills operated at 88 per cent of capacity (83) and
the board mills at 89 per cent (84).
Botnias turnover and profitability were improved by higher capacity
utilization rates, growth in sales volumes and higher pulp prices.
However, the unfavourable trend in the exchange rate for the dollar
reduced the impact of higher sales prices. Market prices for softwood
pulp averaged 17 per cent higher than the previous year while
hardwood pulp prices were 2 per cent higher. Botnias turnover was
EUR 1,063 million (1,006) and operating profit EUR 133.2 million
(84.2). Profit before extraordinary items was EUR 128.7 million
(78.9).
OUTLOOK
Capacity utilization rates are forecast to remain high in 2005. A
busy year is thus anticipated on wood raw material markets. The
purchasing target is 17.7 million cubic metres.
Building activity has picked up slightly. Finnforest improved its
results, notably for its plywood and Kerto LVL businesses. The
traditional sawmilling business, however, is unlikely to return to
profit in the near future.
On tissue markets, price competition remains fierce. By raising
efficiency Metsä Tissues profitability is likely to remain
satisfactory also this year.
The main factors affecting M-reals results are paper and board
prices and the trend in the euro against the dollar. Sales prices are
forecast to be higher this year than at the end of 2004. For Botnia,
the market is expected to remain favourable.
(All figures unaudited)
PROFIT AND LOSS 2004 2003 Change Change
ACCOUNT 1-12 % 1-12 % MEUR %
Turnover 8 554.1 100 8 318.3 100 235.8 2.8
Share of result from
associates -4.7 -6.5 1.8
Other operating
income 144.7 105.0 39.7
Operating expenses -8 032.4 -7 694.8 -337.5
Depreciation -599.7 -570.8 -28.9
Operating profit 62.0 0.7 151.1 1.8 -89.1 -59.0
Net exchange
gains/losses 13.2 19.9 -6.7
Other financial
income and expenses -212.9 -210.8 -2.1
Result before
extraordinary items -137.7 -1.6 -39.8 -0.5 -97.9 -246.0
Extraordinary income 4.1 0.9 3.2
Extraordinary expenses 0.0 -16.0 16.0
Profit before tax and
minority interest -133.6 -1.6 -54.8 -0.7 -78.7 -143.6
Taxation -1.0 -20.6 19.6
Minority interest 113.6 58.9 54.7
Profit for the
financial period -21.0 -0.2 -16.5 -0.2 -4.4 -26.7
BALANCE SHEET 31.12.2004 31.12.2003
MEUR % MEUR %
Assets
Fixed assets 5 318.8 62.9 5 562.8 65.4
Current assets
Inventories 1 171.7 13.9 1 154.9 13.6
Other current
assets 1 658.6 19.6 1 574.6 18.5
Liquid funds 301.7 3.6 215.3 2.5
Total 8 450.8 100 8 507.6 100.0
Members´ funds and
libilities
Members´ capital and
members´ other funds 1 585.5 18.8 1 555.2 18.3
Capital note loans 139.6 1.7 139.3 1.6
Minority interest 1 559.1 18.4 1 408.0 16.6
Provisions 92.6 1.1 85.7 1.0
Liabilities
Long-term 3 210.6 3 605.8
Current 1 863.4 1 713.6
Total 5 074.0 60.0 5 319.4 62.5
Total 8 450.8 100 8 507.6 100
Quarterly data IV/04 III/04 II/04 I/04
Turnover 2130.0 2079.8 2188.8 2155.5
Other operating
income 47.3 27.1 30.4 39.9
Operating expenses -2037.5 -1925.5 -2069.1 -2005.0
Depreciation -131.5 -182.9 -144.7 -140.6
Operating profit 8.3 -1.5 5.4 49.8
% of turnover 0.4 -0.1 0.2 2.3
Net exchange
gains/losses 8.2 -0.7 -0.5 6.2
Fin. income and
expenses -71.7 -45.2 -45.5 -50.5
Result before
extraord. items -55.2 -47.4 -40.6 5.5
Quarterly data IV/03 III/03 II/03 I/03
Turnover 2017.9 2023.5 2098.5 2178.4
Other operating
income 25.1 36.2 28.0 15.7
Operating expenses -1930.1 -1864.0 -1944.0 -1963.2
Depreciation -146.9 -141.7 -141.5 -140.8
Operating profit -34.0 54.0 41.0 90.1
% of turnover -1.7 2.7 2.0 4.1
Net exchange
gains/losses 9.3 -0.6 4.1 7.1
Fin. income and
expenses -86.4 -42.0 -37.2 -45.1
Result before
extraord. items -111.1 11.4 7.9 52.1
Turnover, MEUR 2004 2003
Metsäliitto Cooperative 1 155.5 1 153.9
Wood Products 729.6 706.7
Distribution 563.1 536.8
Building & Construction 132.3 102.3
Moelven 683.3 604.8
Metsä Tissue 684.7 669.2
Cartons 879.7 809.0
Graphics products
and Specialtiy papers 2 377.9 2 348.0
Offices 670.0 682.9
Map Merchant Group 1 368.4 1 392.6
Others & internal sales -690.4 -687.9
Metsäliitto Group 8 554.1 8 318.3
Operating profit, MEUR 2004 2003
Metsäliitto Cooperative 25.4 25.5
Wood Products -1.8 -1.8
Distribution 12.6 7.5
Building & Construction 4.3 4.2
Moelven 4.9 8.6
Metsä Tissue 27.2 48.9
Cartons 60.3 33.3
Graphics products
and Specialtiy papers -90.0 24.3
Offices -3.9 48.2
Map Merchant Group 4.7 6.5
Others & internal sales 18.3 -54.1
Metsäliitto Group 62.0 151.1
Equity ratio, % Gearing ratio, %
2004 2003 2004 2003
Metsäliitto Cooperative 59.8 67.0 -8 -28
Finnforest *) 39.7 39.3 99 106
Finnforest 30.0 29.2 163 178
M-real 41.5 31.9 82 137
Botnia 72.4 70.3 -5 3
Metsäliitto Group 37.3 35.0 100 117
*) capital note loan included in equity
Production, 1 000 units 2004 2003
Sawn goods, m3 4 185 3 958
Processed timber, m3 1 166 691
EW products, m3 911 866
Paper, t 4 144 3 785
Paperboard, t 1 111 913
Pulp, t (M-real) 1 533 1 439
Pulp, t (Botnia) 2 450 2 391
