(Tables included in attached PDF)
First quarter 2013
- Net sales amounted to SEK 5 132 million, compared to SEK 3 068 million in the previous quarter. The increase was due to the Korsnäs acquisition.
- Adjusted operating profit (excluding non-recurring items) reached SEK 432 million. The increase of SEK 305 million from the previous quarter is mainly attributable to the Korsnäs acquisition.
- Integration and realisation of synergies are progressing better than planned and synergies of SEK 77 million have been realised.
- Non-recurring costs of SEK 75 million have burdened the results for the quarter.
- A Medium Term Note (MTN) program was successfully launched on the capital market and SEK 1 500 million was raised and used to repay a short-term loan drawn down in connection with closing the acquisition.
- Additional synergies and savings potentials have been identified. The target has been increased to approximately SEK 530 million in annual synergies and savings by the end of 2015.
- Non-recurring costs of approximately SEK 200 million will be incurred to realise synergies and savings. Costs will impact earnings mainly during 2013 and first half of 2014.
- The order situation varies between segments, but is overall expected to seasonally improve during the second quarter of 2013.
- Price increases in local currency have been announced from April for some products and are being implemented during the second quarter of 2013.
- Supply of wood is good and prices in 2013 are expected to be stable on current level. Average price for 2013 is expected to be 4% below average price level during the fourth quarter of 2012.
Comments by BillerudKorsnäs’ CEO Per Lindberg:
Integration progressing better than planned
“The first full quarter as the new BillerudKorsnäs has come to an end and the integration of the two companies is progressing very well. We have therefore increased the target with SEK 200 million for our integration program to approximately SEK 530 million in synergies, savings and increased efficiency. Non-recurring costs for realising the synergies and savings will increase to approximately SEK 200 million, but are clearly justified given the expected savings. The sales process of PM2 in Gävle is also progressing according to plan and we expect to be able to fulfill the requirements from EU concerning our acquisition of Korsnäs.
Our adjusted operating profit for the quarter of SEK 432 million is in line with expectations given current environment. The currency situation with a very strong Swedish krona is putting high pressure on our operating profit and the negative impact quarter on quarter is SEK 68 million. Given the strong krona, it is pleasing to see that the integration generates positive savings effects beyond our initial expectations.
The trading situation in the first quarter was somewhat slow but stable. The market situation varied between our business areas, and while Packaging Paper faced a slightly slower than normal market, Consumer Board experienced a more satisfactory and normal market and the Containerboard’s market was rebounding and strong. Overall, we are still waiting for a European pick-up, and as a consequence increasing our sales efforts in emerging markets.”
BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will present the interim report at a press and analyst conference at 10.00 CET on Tuesday 23 April 2013.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm, Sweden.
For further information, please contact:
Per Lindberg, President and CEO +46 (0)8 553 335 00
Susanne Lithander, CFO, +46 (0)8 553 335 00
Sophie Arnius, Investor Relations & Financial Media Director, +46 (0)70 590 80 72
The information in this report is such that BillerudKorsnäs AB (publ) is obliged to disclose under the Swedish Securities Market Act and was submitted for publication at 07.00 CET on 23 April 2013.This report has been prepared in both a Swedish and an English version. The report has not been reviewed by the company’s auditor.
BillerudKorsnäs – Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm. www.billerudkorsnas.com