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(Tables included in attached PDF)
Fourth quarter 2013
- Net sales amounted to SEK 4 713 million, the same level as in the previous quarter. Low sales volumes primarily caused by the planned maintenance shutdowns and seasonal destocking negatively impacted net sales.
- Adjusted operating profit reached SEK 226 million. The decrease of SEK 105 million from the previous quarter was mainly attributable to higher fixed costs.
- Operating profits are negatively impacted by the maintenance shutdowns in the production with approximately SEK 249 million.
- Towards the end of the fourth quarter results were negatively impacted with approximately
SEK 70 million by unexpected production problems (as communicated on 21 January 2014).
Full year 2013 compared with the same period in 2012
- The increase in both net sales and adjusted operating profit was due to the acquisition of the two paper machines in Finland in June 2012 and the combination with Korsnäs in November 2012. Today, BillerudKorsnäs has a stronger platform for future growth on the attractive and expanding packaging market. This makes comparisons in the numbers between 2012 and 2013 not applicable.
- The Board of Directors proposes a dividend of SEK 2.25 per share for 2013.
- The start of 2014 has been good and capacity utilisation is expected to improve for business area Packaging Paper during the first quarter compared to the fourth quarter.
- The outlook for all business areas is expected to remain stable during the first quarter. For the remaining quarters of 2014 business areas Packaging Paper and Containerboard are facing more competition.
- Prices in local currency are anticipated to stay on current level for the next quarter for all business areas. Business areas Containerboard and Packaging Paper are anticipating some pressure on prices in local currency beyond the first quarter.
- Wood prices are expected to stay on current level for the first half of 2014.
- The target of approximately SEK 530 million in annual synergies and savings is unchanged and is expected to be reached by the end of 2014.
Comments by BillerudKorsnäs’ CEO Per Lindberg:
Stable fourth quarter results impacted by production problems
“We have closed the books for the first successful year as the new company BillerudKorsnäs. It has been a year of change and I am very pleased to see that the integration is proceeding very well. The underlying performance in the fourth quarter was strong even if the production towards the end of the year suffered from some unexpected incidents. Our adjusted operating profit reached SEK 226 million corresponding to an adjusted operating margin of 5%. This includes some additional negative impact from the planned maintenance shutdowns and the previously announced costs for production problems of SEK 70 million.
During the quarter business has been relatively stable. We mostly saw stable demand, however with some typical year-end destocking. Prices were more or less stable as well. The start of 2014 has been quite good and we will run production on full capacity in the first quarter. The market will be more competitive and we are anticipating some pressure on prices in local currency for some of the products within business areas Containerboard and Packaging Paper beyond the first quarter.
We continue to realise synergies in a rapid pace, and we continue to expect to reach the target of SEK 530 million annual run-rate reduction during 2014. The integration efforts in 2014 are moving into the next phase when many new systems are implemented and new ways of working are introduced. Integration will therefore continue to be a high priority.
In November we had our first Capital Markets Day where we communicated how we are building a company to deliver value to customers and shareholders. It was well received and gave us further confidence to continue in building a value-creating world-class company for the long term.”
BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will present the year-end report at a press and analyst conference at 10.00 CET on Tuesday 18 February 2014.
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
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 18 February 2014. This report has been prepared in both a Swedish and an English version.
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