Interim report January-September 2009
Submitted for publication at 9 a.m. on 28 October 2009 (Tables included in attached PDF) January-September 2009 compared with same period in 2008 • Net turnover was MSEK 5,700 (6,083), down 6%. • Net profit was MSEK 5 (250). • Earnings per share were SEK 0.07 (3.39). • Operating profit was MSEK 69 (454), representing a margin of 1% (7). • The rights issue has been completed and raised MSEK 928 after issue costs. July-September 2009 compared with April-June 2009 • Net turnover was MSEK 1,893 (1,907). • Net profit was MSEK 36 (8), an improvement of MSEK 28. •Operating profit was MSEK 64 (42), an improvement of MSEK 22, mainly due to lower fixed and variable costs. • Operating cash flow amounted to MSEK 348 (170). • The improved order situation noted in the second quarter continued in the third quarter. • A provision of MSEK 19 has been accounted for relating to The Swedish Environmental Court’s ruling regarding incorrect transfers of emissions certificates in 2006. Billerud has appealed the ruling. • Maintenance stops have been carried out at two mills, however with lower costs than earlier. Outlook for full year 2009 • The order situation remained positive at the end of the third quarter but uncertainty remains about the effects of general economic conditions on demand as the year reaches its end. • Price reductions for packaging paper bottomed out during the quarter, and price increases have been announced for most of Billerud’s products. • Lower input prices mainly for wood and chemicals and an improved currency situation are expected to have positive effects on earnings also in the final quarter compared with the same period last year. • Work on cost savings is progressing according to plan and is expected to produce savings of at least MSEK 250 annually by the end of 2009. • Inventory levels for market pulp on world markets continued to fall during the third quarter, which has led to an improvement in price levels. Billerud’s President Per Lindberg and CFO Bertil Carlsén will present the interim report at a press conference on Wednesday 28 October at 2 p.m. Location: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm. Comment by Per Lindberg, Billerud CEO “We are very pleased that orders continued to be good in the third quarter and that the operating profit improved to reach MSEK 64, compared with MSEK 42 in the previous quarter. Work on cost savings continues to produce good results. The trend of falling prices at the start of the year has bottomed out and been followed by the announcement of price increases for most of our products. If the current order situation continues, an important task begins of re-establishing prices to levels that are sustainable over the long term. The rights issue was completed with a large amount of interest and has given us a strong balance sheet. We now have adequate headroom from which to manage the uncertainty that remains on the market while we also have a good platform to further develop Billerud. In the next few days we will start the commercial launch of FibreForm®, a completely new product. This is our response to our customers’ requests for an innovative and renewable alternative to moulded plastic packaging and is a result of working on product development in close co-operation with customers.” For further information in connection with this report, please contact Per Lindberg, President and CEO, +46 8 553 335 00 or +46 70 248 15 17 and Bertil Carlsén, CFO, +46 8 553 335 00 or +46 730 211 092