Metsäliitto Group interim report 1-3/2009
Metsäliitto Group Interim Report 1 January-31 March 2009, Stock
Exchange Release April 22, 2009 at 11.30
a.m.
Metsäliitto Group's operating result excluding non-recurring items
EUR -67 million
Result for the first quarter of 2009
- Sales EUR 1,278 million (EUR 1,710 million).
- Operating result excluding non-recurring items was EUR -67 million
(60). Operating result including non-recurring items was EUR -137
million (84).
- Result before taxes and excluding non-recurring items was EUR -93
million (2). Result before taxes and including non-recurring items
was EUR -163 million (26).
Events during the first quarter
- Production was discontinued at the Metsä-Botnia Kaskinen pulp mill.
There were no viable economic prerequisites to continue the mill`s
operations.
- Production adjustment measures also continued in the other business
areas of the Group. Wood Products Industry closed the Teuva sawmill
and announced it would suspend operations at the Kyröskoski sawmill
until further notice and start statutory labour negotiations at the
Karihaara sawmill. As a result of the negotiations concluded in
April, operations at the Karihaara sawmill will also be suspended
until further notice by the end of June. In Wood Supply Finland, a
decision on temporary layoffs was made.
- M-real's profitability improvement programme of EUR 80 million and
a separate cash flow improvement programme of EUR 60 million were
successfully launched."We will concentrate on seeking profitability and improving cash flow
in all our operations as well as on restructuring and developing the
core of our business operations. This work is being done in an
extremely challenging market situation. Tissue and Cooking Papers
managed to achieve good results even in the challenging situation at
the beginning of the year, and these have had an uplifting impact on
us."
Kari Jordan, President & CEO, Metsäliitto Group
Metsäliitto Group
Income statement 2009 2008 2008
(Continuing operations) 1-3 1-3 1-12
Sales 1 278 1 710 6 434
Other operating income 42 59 239
Operating expenses -1 342 - 1 587 -6 189
Depreciation and impairment losses -116 -98 -482
Operating result -137 84 2
Share of results in associates -2 2 6
Exchange gains and losses -2 2 19
Other net financial items -20 -62 -260
Result before income tax -163 26 -233
Income tax 19 -7 60
Result from continuing operations -144 19 -172
Metsäliitto Group
Profitability 2009 2008 2008
(Continuing operations) 1-3 1-3 1-12
Operating result, EUR mill. -137 84 2
- " -, excluding non-recurring items -67 60 45
Return on capital employed, % -10.1 7.0 0.5
- " -, excluding non-recurring items -4.7 5.2 1.3
Return on equity, % -34.0 3.2 -8.4
- " -, excluding non-recurring items -17.5 -0.8 -6.4
Financial position 2009 2008 2008
31.3. 31.3. 31.12.
Equity ratio, % 24.8 29.2 26.0
Net gearing ratio, % 167 142 149
Interest-bearing net liabilities, EUR mill. 2 666 3 329 2 666
Sales and Operating result Wood Wood Pulp *) Board Tissue
1-3/2009 Supply Products Industry and and
(EUR mill.) Industry Paper Cooking
Industry Papers
Sales 327 202 303 623 218
Other operating income 1 1 9 33 2
Operating expenses -322 -218 -341 -704 -191
Depreciation & impairment -1 -10 -93 -70 -10
losses
Operating result 5 -25 -122 -118 19
Non-recurring items 0 0 75 53 0
Operating result excl.
non-recurring items 5 -25 -47 -65 19
*) Represents 100%. The Metsäliitto Group consolidates 53% of the
Pulp Industry.
The figures are unaudited
METSÄLIITTO GROUP
INTERIM REPORT 1 JANUARY - 31 MARCH 2009
Sales and result
Metsäliitto Group's sales for the first quarter were EUR 1,278
million (1,710).
Operating result excluding non-recurring items was EUR -67 million
(60). The non-recurring items were a net of EUR -70 million (24), of
which EUR 40 million was associated with the closure of the
Metsä-Botnia Kaskinen mill, EUR 28 million with the closure of the
M-real Hallein paper mill and EUR 2 million with M-real's sales
network improvement programme.
Operating result excluding non-recurring items improved slightly
compared to the previous quarter (Q4/08: -75). Compared to the
corresponding period last year, the operating result weakened
significantly as the effects of the global recession started to show
during the last quarter of 2008. The situation in Wood Products
Industry was extremely challenging even before this and at the end of
2008, the Board and Paper as well as Pulp industries were also hit
hard. The downturn has not had a considerable impact on demand in
Tissue and Cooking Papers.
As a result of the weakened market situation, production adjustment
measures were boosted in nearly all of the Group's business areas.
During the first quarter of the year, Metsä-Botnia's Kaskinen pulp
mill and Wood Products Industry's Teuva sawmill were closed and
operations were temporarily suspended at the Kyröskoski sawmill. In
addition, statutory labour negotiations were held in Wood Supply
Finland and in the different business areas.
The operating result of the Metsäliitto Group including non-recurring
items was EUR -137 million (84). Financial income was EUR 10 million
(5), shares in associated companies' profits totalled EUR -2 million
(2) and financial expenses came to EUR 31 million (67). Net exchange
gains/losses booked in financial items were EUR -2 million (2). On
average, the US dollar strengthened by 13 per cent in the first
quarter, the British pound weakened by 20 per cent and the Swedish
krona by 16 per cent compared with the same period last year.
M-real completed a purchase with a nominal value of EUR 59.95 million
from the market of its own bond of EUR 400 million maturing in
December 2010. The financial income recognised for purchases amounted
to approximately EUR 30.8 million.
The result before taxes was EUR -163 million (26) and taxes,
including changes in deferred tax liability, were EUR 19 million
(-7). The result for continuing operations was EUR -144 million (19),
the result for closed operations was EUR -10 million (-19) and the
result for the financial period was EUR -153 million (0).
The parent company members' share of the result for the period was
EUR -84 million (9) and the minority share was EUR -69 million (-9).
The Group's return on capital employed for continuing operations was
-10.1 per cent (7.0) and return on equity was -34.0 per cent (3.2).
Excluding non-recurring items, return on capital employed was -4.7
per cent (5.2) and return on equity was -17.5 per cent (-0.8).
Balance sheet and financing
Metsäliitto Group's total liquidity was EUR 1.7 billion at the end of
March (31 December 2008: 1.8). Of this, EUR 0.4 billion (0.6) was in
terms of liquid assets and investments, and EUR 1.3 billion (1.2) was
in binding credit facility agreements not included in the balance
sheet. In addition, the Group can satisfy short-term financial needs
with non-binding commercial paper schemes in Finland and abroad, as
well as credit lines amounting to approximately EUR 0.6 billion.
The Group's equity ratio in March was 24.8 per cent and net gearing
was 167 per cent (31 December 2008: 26.0% and 149%, respectively).
Interest-bearing net liabilities were EUR 2,666 million (31 December
2008: 2,666). The equity ratio of the parent company, Metsäliitto
Cooperative, was 55.8 per cent at the end of March and the net
gearing ratio was 49 per cent (31 December 2008: 54.6% and 45%,
respectively).
Metsäliitto Cooperative's members' capital grew by EUR 0.6 million in
January-March. The actual members' capital decreased by EUR 1.5
million, the additional members' capital A grew by EUR 1.8 million
and the additional members' capital B grew by EUR 0.4 million. At the
end of March, Metsäliitto Cooperative had 128,125 members (31
December 2008: 129 267).
Metsäliitto Cooperative's Supervisory Board will make a proposal to
Metsäliitto Cooperative's Representative Council, convening on 22
April 2009, to decide to pay 5.5 per cent (6.5) of interest on the
subscribed members' capital, 5.0 per cent (5.5) on the additional A
series capital and 4.5 per cent (4.0) on the additional B series
capital for 2008. Thus, the interest on members' capital for 2008
would total EUR 37.4 million (41.1).
Personnel
The Group employed an average of 16,236 people (17,774) during the
first quarter. At the end of March, the number of personnel in the
Group was 16,146 (31 December 2008: 16,729). The parent company
Metsäliitto Cooperative employed 3,059 people at the end of March (31
December 2008: 3,217).
Investments
Metsäliitto Group's capital expenditure totalled EUR 35 million (43).
M-real's structural change
In February 2009, M-real launched a new profit improvement programme
with an annual target of EUR 80 million. The programme targets at
savings in the business areas and streamlining M-real's support
functions to reflect the new company structure after the divestment
of Graphic Papers. The full annual effect of the programme will be
visible from 2011. The majority of the profit improvement measures
are expected to be implemented in 2009, and the profit impact is
estimated to be EUR 20-25 million in 2009. The related non-recurring
costs booked during 2009 are expected to be about EUR 18 million.
M-real is also implementing a separate EUR 60 million programme to
improve the 2009cash flow, e.g., the reduction of operating net
working capital and cuts in investments.
Based on strategic alternatives investigated earlier, M-real
announced in 2008 that it was planning to discontinue the production
of standard coated fine paper at the Hallein and Gohrsmühle mills.
The operations at both mills have been unprofitable for a long time.
As a result of the statutory labour negotiations concerning 480
people at the Hallein mill in January 2009, paper production will be
discontinued by the end of April 2009. At the Gohrsmühle mill in
Germany, standard fine paper production will be discontinued in April
while the production of special papers and uncoated fine paper reels
and folio sheets will be expanded. The combined standard coated fine
paper production capacity of Hallein and Gohrsmühle is about 0.6
million tonnes per annum. The review of future options for the
Hallein pulp mill is in progress.
In Finland, statutory negotiations concerning 1,500 people at mill
operations were conducted to carry out temporary lay-offs. The
negotiations were completed during the period 30 January-2 February
2009 in different locations. The temporary lay-offs will be
implemented in varying periods during the year, with the maximum
duration being 90 days.
The reorganisation of the sales network following the sale of the
Graphic Papers business area was completed during the first quarter
and the statutory labour negotiations were concluded by the end of
March. The statutory negotiations were carried out simultaneously in
14 countries, involving approximately 310 employees in customer
service and administration. Approximately 50 people were transferred
to other M-real business areas and approximately 160 were made
redundant. Following the sale of the Graphic Papers business, Sappi
recruited approximately 100 people from M-real's sales organisation
into its own organisation.
The strategic review of the paper business continues.
Business areas
Wood Supply
Wood Supply sales were EUR 327 million (486) in January-March, and
operating result amounted to EUR 5 million (10). Operating result
does not include non-recurring items (2). Wood Supply Finland
accounted for EUR 246 million (334) of sales and EUR 4 million (7) of
the operating result. The most significant reason for the reduced
sales and operating result is the delivery volume that was clearly
lower than the year before.
In the first quarter, the amount of wood bought by Metsäliitto in
Finland was approximately one half of the amount bought during the
corresponding period last year. Due to extensive production cuts, the
purchase and harvesting volumes of timber had to be curtailed,
especially pulpwood. Purchases concentrated on roundwood and forest
energy. The good winter weather enabled the harvesting of stands
marked for winter harvesting which had accumulated as a result of
mild weather in the previous two winters. The price level declined
for both pulpwood and roundwood.
A new membership reward system was implemented at the beginning of
the year encouraging recurring sale of timber and enabling the use of
membership bonuses to purchase services offered by Metsäliitto. An
energy wood harvesting project was launched in order to make forest
energy procurement more effective.
In March, Metsäliitto announced it would adjust Wood Supply Finland
to the market situation by temporarily laying off the staff at the
procurement districts and procurement and delivery units for two to
six weeks. In addition, an organisational restructuring will be
implemented in Northern Finland to adjust the wood procurement
organisation in the region to the reduced delivery volumes.
Timber delivery volumes from Russia fell sharply at the beginning of
the year despite the delay in timber duty increases. The deliveries
were primarily pulpwood and chips from felling by companies owned by
Metsäliitto. Demand for wood was weak and prices fell significantly.
Metsäliitto continued the structural change of wood procurement and
making the operations more efficient.
In the Baltic countries, the market for pulpwood was nearly at a
standstill and the prices of all types of timber fell sharply. The
size of the wood procurement organisations in the Baltic countries
was adjusted to correspond to the reduced delivery volumes.
In Sweden, inventory levels of pulpwood were high and wood reception
was curtailed. Timber prices were slightly decreasing.
The entire delivery volume of Wood Supply to production plants in the
three first months of the year was 6.9 million cubic metres (9.2).
Wood Products Industry
Metsäliitto Wood Products Industry's sales totalled EUR 202 million
(315), and the operating result was EUR -25 million (-2). The result
does not include non-recurring items.
The market situation of the Wood Products Industry was extremely
difficult during the first quarter. The weak demand led to lower
sales. Furthermore, the result was burdened by the distorted cost
structure as a result of the low capacity utilisation rate. The
overcapacity in the sawn goods market and the high inventory levels
of producers in particular reduced the prices of sawn goods during
the first quarter. The interior decoration and garden range markets
have not yet slowed down significantly, and Wood Products Industry
has managed to maintain a satisfactory price level in highly
processes products.
Temporary layoffs and other cost saving measures continued at the
beginning of the year in order to align costs with the reduced
demand. In addition to the closure of the Soinlahti sawmill at the
end of 2008, the operations at the Teuva sawmill were discontinued in
January 2009. Production at the Kyröskoski sawmill has been suspended
until further notice since February, and the operations at the
Karihaara sawmill will be suspended by the end of June. Continuing
the operations at the Kyröskoski and Karihaara sawmills will be
re-evaluated depending on the development in the market. In addition
to the sawn goods production, the production of processed sawn goods,
plywood and engineered wood products were curtailed in January-March.
At the beginning of the year, Wood Products Industry launched further
processed plywood products to meet the needs of industrial customers.
The development of yard and garden buildings and related services
continued strongly in Great Britain and France. A new surface treated
decking board with hidden fasteners was launched for the domestic
yard and garden furnishing market.
In January, Metsäliitto Wood Products Industry signed an agreement on
the delivery of Finnforest structures to the Ideapark commercial city
in Kiiminki.
Pulp
Pulp industry sales were EUR 303 million (398) in January-March, and
operating result amounted to EUR -47 million (75). The cost effects
of non-recurring items and fixed assets write-downs connected to the
closure of the Kaskinen mill were EUR 75 million, of which EUR 20
million have an impact on cash flow. The operating result including
non-recurring items was EUR -122 million (75).
The fall in sales and operating result was due to considerable
weakening of the market situation and declining price of pulp that
caused the impairment of pulp inventories. The result was also
weakened by production curtailment shutdowns caused by declining
demand.
Demand for pulp continues to be weak due to the low utilisation rate
of paper mills. Producers' inventory levels are high in spite of
production curtailments at several mills and closures of older
capacity. Metsä-Botnia curtailed production at all mills in Finland
during the first quarter.
The price of pulp continued to decline during the first quarter of
the year. In March, softwood pulp was selling at US dollar 580/tonne
and hardwood pulp at US dollar 490/tonne.
Foreign-currency-denominated market prices for softwood pulp were, on
average, 33 per cent lower compared with the first quarter last year.
The average prices of hardwood pulp fell by 34 per cent.
The statutory labour negotiations regarding the Kaskinen mill were
completed on 12 January 2009. The negotiations did not find the
economic prerequisites for continuing the operations of the mill, and
the running down of production started on 11 March 2009. Draining and
cleaning of the process equipment and tanks continued until the end
of March. Wood handling, operations of the water treatment and
effluent treatment plants and energy production will continue
according to the needs of the M-real BCTMP mill located in the same
integrate.
In March, the International Finance Corporation (IFC) of the World
Bank Group published the results of the environmental monitoring for
the first year of operations at the Fray Bentos mill. According to
the report, the mill's operations comply with environmental standards
and its emissions and effluents remain below the levels set by the
authorities. The report also indicates that the mill has not had an
impact on the quality of water in Río Uruguay or the air quality in
the region.
M-real's result includes 30 per cent of Pulp Industry's operating
result. In total, 53 per cent of the figures for the Pulp Industry
are consolidated into Metsäliitto Group's financial statements.
Board and Paper
Board and Paper's sales totalled EUR 623 million (859), and the
operating result excluding non-recurring items was EUR -65 million
(14).
Operational result was weakened by the reduced delivery volumes due
to the difficult demand situation and by the impairment of
inventories. The result was improved by the achieved price increases
and cost savings.
Net non-recurring items totalled EUR -53 million (23) in
January-March. Of these, EUR 22 million was associated with the
closure of the Metsä-Botnia Kaskinen mill, EUR 28 million with the
closure of the M-real Hallein paper mill and EUR 2 million with
M-real's sales network improvement programme.
The operating result including non-recurring items was EUR -118
million (37). Net interest and other financial expenses totalled EUR
+4 million (-37), income from associates was EUR -1 million (0) and
net exchange gains/losses recognised as financial items were EUR 0
million (2).
In March, M-real completed a purchase with a nominal value of EUR 60
million from the market of its own bond of EUR 400 million maturing
in December 2010. A profit of approximately EUR 31 million was
recognised in financial income from purchases made.
Profit before taxes was EUR -115 million (2), earnings per share were
EUR -0.32 (0.00) and return on investment was -13.4 per cent (5.7).
The result excluding non-recurring items before taxes was EUR -62
million (-21), earnings per share were EUR -0.18 (-0.06) and return
on capital employed was -7.0 per cent (2.9).
At the end of March, M-real's equity ratio was 30.3 per cent and net
gearing was 101 per cent (31 December 2008: 30.8% and 90%,
respectively). In some of M-real's borrowing arrangements, a limit of
120 per cent has been set for gearing and a limit of 30 per cent for
the equity ratio. At the end of March, gearing calculated in the
manner defined in the borrowing agreements was approximately 81 per
cent and the equity ratio about 35 per cent.
Tissue and Cooking Papers
Sales of Metsä Tissue, which produces tissue and cooking papers,
totalled EUR 218 million (230), and its operating result was EUR 19
million (9). The improved operating result was due to both
improvement measures and reduced raw material costs. The result does
not include non-recurring items.
{0>Liikevaihto pieneni ensimmäisellä vuosineljänneksellä noin viisi
prosenttia edelliseen vuoteen verrattuna.<}0{>In the first quarter,
sales decreased by about 5 per cent compared with the previous
year.<0} {0>Pieneneminen johtui myyntivolyymeista (-3 %) ja
valuuttakurssimuutoksista (-2 %).<}0{>The decrease was a result of
the sales volume (-3%) and exchange rate differences (-2%).<0}{0>Omien tuotemerkkien myynti kasvoi kolme prosenttia edelliseen
vuoteen verrattuna.<}0{>The sale of its own brands grew by 3 per cent
compared with the previous year.<0}
Metsä Tissue will continue to invest in product development and its
own product brands and to boost sales based on them. Own brands were
strengthened further with the launch of the Lambi Limited Collection
premium product concept and the reforms of various product
categories. Private label products were also developed and will
continue to be developed through innovative campaign products.
Risks and uncertainties
Since the estimates and statements in this interim report are based
on current plans and estimates, they involve risks and uncertainties
that may cause the outlook to materially differ from those expressed
in such statements. The risks related to the Group's business have
been explained more extensively in Metsäliitto Group's Annual report
for 2008.
Outlook
The development in the finished goods market situation will be
monitored by Wood Supply. The demand for log-intensive stands marked
for felling and forest energy continues to be good.
The difficult market situation in Wood Products Industry is expected
to continue at least during the second quarter, and cost adjustments
will continue in all operations. On the other hand, economic stimulus
activities are expected to boost the activity in the European
construction market, and project construction order stock in Wood
Products Industry is likely to remain at a good level. The market for
wooden consumer products for interior decoration and yard and garden
furnishings is expected to develop favourably, and the sale of these
products is expected to grow seasonally during the spring and
summer.
At present, it seems possible that the pulp cycle will turn in the
second half of 2009.
Producers' inventories are still very high. Production curtailments
will be carried out in the mills in Finland during the year if the
market situation so requires.
During the coming months, demand and delivery volumes of board and
paper products seem to remain clearly weaker than during the
corresponding period last year. Major production curtailments will be
continued, and the current level of product prices is defended by
production curtailments. M-real's internal profit improvement
programmes, concurrently with declining wood raw material and
chemical costs, will ease the challenging profitability situation.
The downturn will not have a considerable impact on the demand for
tissue and cooking papers. However, growth has slowed down,
particularly in emerging markets. It is likely that rapidly
decreasing raw materials costs have bottomed out during the first
quarter.
As the uncertainty continues in the global market situation,
Metsäliitto Group will not provide forecasts on the estimated profit
development for the time being. Due to the difficult operating
environment, the second quarter of the year will be as challenging as
the first. However, we will continue to adjust our operations
actively to the situation.
Espoo, 22 April 2009
Metsäliitto Group
Board of Directors
For further information:
Ilkka Pitkänen, Group CFO, Metsäliitto Group, tel. +358 10 465 4260
Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541
The figures are unaudited
METSÄLIITTO GROUP
Condensed consolidated statement of 2009 2008 2008
comprehensive income 1-3 1-3 Change 1-12
Continuing operations
Sales 1 278 1 710 -432 6 434
Other operating income 42 59 -17 239
Operating expenses -1 342 -1 587 245 -6 189
Depreciation and impairment losses -116 -98 -18 -482
Operating result -137 84 -221 2
Share of result in associated companies -2 2 -4 6
Exchange gains and losses -2 2 -4 19
Other net financial items -20 -62 42 -260
Result before income tax -163 26 -189 -233
Income tax 19 -7 26 60
Result for the period from continuing -144 19 -163 -172
operations
Discontinued operations
Result from discontinued operations -10 -19 9 -338
Result for the period -153 0 -153 -511
Other comprehensive income
Cash flow hedges -4 -8 4 -55
Available for sale financial assets -66 73 -139 97
Currency translation differences 9 -10 19 13
Other items 2 0 2 -1
Income tax relating to components of
other comprehensive income 21 -21 42 -16
Other comprehensive income, net of tax -37 35 -72 39
Total comprehensive income for the period -191 35 -225 -472
Result attributable to:
Members of parent company -84 9 -93 -213
Minority interest -69 -9 -60 -297
-153 0 -153 -511
Total comprehensive income attributable
to:
Members of parent company -98 21 -119 -199
Minority interest -93 14 -106 -272
-191 35 -225 -472
Unaudited
Condensed consolidated balance sheet 2009 2008 2008
31.3. 31.3. 31.12.
ASSETS
Non-current
Goodwill 181 321 176
Other intangible assets 100 113 88
Tangible assets 2 888 3 853 2 958
Biological assets 108 77 103
Investments in associated companies 133 136 139
Available for sale investments 430 445 493
Non-current financial assets 234 38 234
Deferred tax receivables 70 44 61
4 145 5 028 4 252
Current
Inventories 905 1 175 943
Accounts receivables and other receivables 1 023 1 514 1 085
Cash and cash equivalents 389 323 619
2 317 3 013 2 647
Total assets 6 462 8 041 6 899
MEMBERS' FUNDS AND LIABILITIES
Members' funds
Members' funds 1 007 1 355 1 104
Minority interest 587 982 682
1 594 2 337 1 786
Non-current liabilities
Deferred tax liabilities 292 421 328
Post-employment benefit obligations 125 176 131
Provisions 113 73 111
Borrowings 2 704 3 030 2 854
Other liabilities 23 46 26
3 256 3 746 3 449
Current liabilities
Current borrowings 605 733 690
Accounts payable and other liabilities 1 007 1 225 974
1 611 1 958 1 664
Total liabilities 4 868 5 704 5 113
Total members' funds and liabilities 6 462 8 041 6 899
Equity
attributable to members of parent company
Change in Members' Share Tran- Fair Retain- Total Minor- Total
members' capital pre- slation value ed ity
funds mium differ- and earn- inte-
acc- ences other ings rest
EUR mill. ount reser-
ves
Members' 574 30 -7 148 583 1 328 978 2 306
funds
1.1.2008
Dividends 0 -12 -12
paid
Change in 6 6 6
members'
capital
Change in 0 0
share premium
account
Change in 0 0
fair value
reserve
Transfer from
unrestricted 0 0
to restricted
equity
Business 0 3 3
combinations
Total
comprehensive -8 19 10 21 14 35
income
for the
period
Members' 580 30 -15 167 593 1 355 982 2 337
funds
31.3.2008
Members' 585 30 -5 165 329 1 104 682 1 786
funds
1.1.2009
Dividends 0 -1 -1
paid
Change in 1 1 1
members'
capital
Change in 0 0
share premium
account
Change in 0 0
fair value
reserve
Transfer from
unrestricted 0 0
to restricted
equity
Business 0 -1 -1
combinations
Total
comprehensive 7 -22 -82 -98 -93 -191
income
for the
period
Members' 585 30 2 143 246 1 007 587 1 594
funds
31.3.2009
Unaudited
Condensed consolidated cash flow statement 2009 2008 2008
1-3 1-3 1-12
Result for the period -153 0 -511
Total adjustments 117 152 832
Change in working capital 1 -164 88
Cash flow arising from operations -35 -12 410
Net financial items 44 -51 -239
Income taxes paid -7 -15 -58
Net cash flow arising from operating activities 2 -77 113
Investments in tangible and
intangible assets -35 -43 -272
Divestments of assets and other 5 58 511
Net cash flow arising from investing activities -30 14 239
Change in members' funds 1 8 -1
Change in long-term loans
and other financial items -204 -37 -101
Dividends paid 0 -12 -55
Net cash flow arising from financing activities -203 -40 -157
Changes in cash and cash equivalents -231 -103 195
Cash and cash equivalents at beginning of period 619 428 428
Translation difference 1 -2 -4
Changes in cash and cash equivalents -231 -103 195
Cash and cash equivalents at end of period 389 323 619
Unaudited
BUSINESS SEGMENTS
Wood Supply QI/09 QI/08 QI-IV/08
Sales 327 486 1 734
EBITDA 6 12 35
- " -, excl. non-recurring items 6 10 33
Depreciation and impairment -1 -1 -5
Operating result 5 10 30
- " -, excl. non-recurring items 5 9 28
Investments 0 1 4
Personnel at end of period 1 093 1 278 1 140
Wood Products Industry QI/09 QI/08 QI-IV/08
Sales 202 315 1 162
EBITDA -15 9 -18
- " -, excl. non-recurring items -15 9 -11
Depreciation and impairment -10 -11 -57
Operating result -25 -2 -74
- " -, excl. non-recurring items -25 -2 -53
Investments 1 6 36
Personnel at end of period 3 979 4 501 4 199
Pulp Industry QI/09 QI/08 QI-IV/08
Sales 303 398 1 591
EBITDA -29 110 347
- " -, excl. non-recurring items -12 110 347
Depreciation and impairment -93 -34 -138
Operating result -122 75 209
- " -, excl. non-recurring items -47 75 209
Investments 10 23 99
Personnel at end of period 1 767 1 859 1 815
The Metsäliitto Group consolidates 53% of the Pulp Industry
(M-real 30% and Metsäliitto Cooperative 23%).
Board and Paper Industry QI/09 QI/08 QI-IV/08
Sales 623 859 3 236
EBITDA -48 96 254
- " -, excl. non-recurring items -13 73 192
Depreciation and impairment -70 -59 -315
Operating result -118 37 -61
- " -, excl. non-recurring items -65 14 -35
Investments 16 21 128
Personnel at end of period 6 314 6 866 6 546
Tissue and Cooking Papers QI/09 QI/08 QI-IV/08
Sales 218 230 930
EBITDA 29 25 98
- " -, excl. non-recurring items 29 25 99
Depreciation and impairment -10 -16 -56
Operating result 19 9 42
- " -, excl. non-recurring items 19 9 44
Investments 4 3 33
Personnel at end of period 3 204 3 284 3 222
Other operations QI/09 QI/08 QI-IV/08
Sales 90 91 315
EBITDA 14 10 29
- " -, excl. non-recurring items 14 10 24
Depreciation and impairment -5 -4 -20
Operating result 10 6 9
- " -, excl. non-recurring items 10 6 4
Investments 12 8 48
Personnel at end of period 1 150 1 242 1 204
Other operations include Vapo Group (49,9%) and Metsäliitto's service
and
holding functions.
Internal sales
and eliminations QI/09 QI/08 QI-IV/08
Sales -485 -670 -2 534
EBITDA 22 -79 -261
- " -, excl. non-recurring items 9 -78 -259
Depreciation and impairment 73 27 109
Operating result 94 -52 -152
- " -, excl. non-recurring items 36 -51 -150
Metsäliitto Group QI/09 QI/08 QI-IV/08
Sales 1 278 1 710 6 434
EBITDA -22 182 484
- " -, excl. non-recurring items 15 159 425
Depreciation and impairment -116 -98 -482
Operating result -137 84 2
- " -, excl. non-recurring items -67 61 45
Investments 35 43 272
Personnel at end of period 16 146 17 599 16 729
EBITDA = Operating result before depreciation and impairment losses.
Unaudited
Quarterly data 2009 2008 2008 2008 2008
QI QIV QIII QII QI
Sales
Wood Supply 327 360 414 474 487
Wood Products Industry 202 239 279 329 315
Pulp Industry 303 359 421 413 398
Board and Paper Industry 623 722 826 829 859
Tissue and Cooking Papers 218 234 235 231 230
Other operations 90 87 60 77 91
Internal sales and eliminations -485 -548 -639 -677 -670
Group sales 1 278 1 453 1 595 1 676 1 710
Operating result
Wood Supply 5 4 4 12 10
Wood Products Industry -25 -55 -16 -1 -2
Pulp Industry -122 -13 102 44 75
Board and Paper Industry -117 -161 -8 71 37
Tissue and Cooking Papers 19 10 13 11 9
Other operations 10 -1 3 1 6
Elimineringar 94 10 -78 -32 -52
Group operating result -137 -206 19 105 84
- % of sales -10.7 -14.2 1.2 6.3 4.9
Share of results in
associated companies -2 -6 8 2 2
Exchange gains and losses -2 18 0 -2 2
Other net financial items -20 -84 -63 -51 -62
Result before income tax -163 -277 -35 54 26
Income tax 19 66 2 -1 -7
Result for the period from
continuing operations -144 -211 -33 53 19
Result from
discontinued operations -10 -62 -212 -45 -19
Result for the period -153 -273 -245 8 0
Unaudited
Change in tangible assets QI/09 QI/08 QI-IV/08
Book value at beginning of period 2 958 4 021 4 021
Company acquisitions 1 - 4
Investments 31 46 255
Decrease -6 -79 -686
Depreciation and impairment charges -109 -90 -438
- " - , discontinued operations - -19 -149
Translation differences and other changes 13 -27 -49
Book value at end of period 2 888 3 853 2 958
Depreciation and impairment charges of discontinued operations
include the Graphic Papers business.
Commitments QI/09 QI/08 QIV/08
On own behalf (incl. leasing liabilities) 310 341 318
On behalf of associated companies 4 3 3
On behalf of others 6 2 4
Total 320 346 325
Commitments related to fixed assets QI/09 QI/08 QIV/08
Payments due under 1 year 0 9 0
Payments due in subsequent years 1 1 1
Open derivative contracts QI/09 QI/08 QIV/08
Interest rate derivatives 1 027 1 458 1 158
Currency derivatives 2 055 2 613 2 346
Other derivatives 337 184 232
Total 3 419 4 255 3 735
The market value of open derivative contracts at the end of the
review period was EUR -56 million (12/08: EUR 33 million). Open
derivative contracts also include closed contracts to a total amount
of EUR 496 million (12/08: EUR 787 million).
Accounting policies
The Financial Statements Bulletin was prepared in accordance with the
IAS 34 standard Interim Financial Reporting and the accounting
policies presented in Metsäliitto Group's Annual Report.
The Group has adopted the following standards in 2009:
IAS 1 (Revised), 'Presentation of Financial Statements'. The revised
standard is aimed at improving users' ability to analyse and compare
the information given in financial statements by separating changes
in equity of an entity arising from transactions with owners from
other changes in equity. Non-owner changes in equity are presented in
the statement of comprehensive income.
IFRS 8, 'Operating Segments'. The new standard replaces IAS 14. The
new standard requires a 'management approach', under which segment
information is presented on the same basis as that used for internal
reporting purposes. The segments reported by the Group as from Jan 1,
2009 are Wood Supply, Wood Products Industry, Pulp Industry, Board
and Paper Industry, Tissue and Cooking Papers and Other operations.
The figures for the comparative periods have been changed according
to the new segments.
Taxes include taxes corresponding to the result for the period under
review.
