Interim report January-September 2011
Submitted for publication at 07.45 CET on 28 October 2011
(Tables included in attached PDF)
January-September 2011 compared with the same period in 2010
- Net sales amounted to SEK 7 257 million (6 549), an increase of 11%.
- Operating profit amounted to SEK 903 million (711), corresponding to a margin of 12% (11).
- Profit for the period amounted to SEK 638 million (480).
- Earnings per share amounted to SEK 6.19 (4.66).
July-September 2011 compared with April-June 2011
- Net sales amounted to SEK 2 327 million (2 383).
- Operating profit amounted to SEK 296 million (275). The increase is mainly due to lower costs including lower costs for periodic maintenance shutdowns and lower costs for inputs.
- The order situation weakened during the quarter.
- Prices in local currency for the packaging paper segments were stable compared with the second quarter. Price pressure increased, however, towards the end of the quarter.
- Market-related shutdowns were implemented during the quarter, primarily relating to sack paper, in order to restore the balance in the market.
Outlook for the full-year 2011
- Market development at the start of the fourth quarter was marked by some uncertainty about demand. Customers have continued to reduce their packaging paper stock levels, which is having a negative impact on orders. Underlying demand, however, is estimated to be relatively stable in most segments.
- The start of the fourth quarter has been characterised by continued price pressure.
- Billerud continues its efforts to increase the proportion of sales of packaging paper solutions, i.e. material combined with services in order to create conditions for a relatively more stable development.
Comments by Billerud’s CEO Per Lindberg:
Strong earnings and very strong cash flow
“Billerud can deliver yet another strong result for the third quarter with an operating margin of 13%. Cash flow from operating activities amounted to SEK 531 million, which is very strong. Operating profit for the quarter of SEK 296 million means that earnings for the third quarter were just as strong as in the previous quarters in 2011. This was achieved despite periodic maintenance and market-related shutdowns. So the weaker market situation during the quarter was not reflected in the figures. In the packaging paper segments, we maintained the price level in local currency, but in the latter part of the third quarter we felt some price pressure from the market.
Our work to strengthen Billerud’s brand as “The Natural Part in Smarter Packaging” was launched when Billerud opened NASDAQ OMX in New York on 26 September. This clarifies our position as a more customer- and solutions-oriented company and we offer packaging manufacturers and brand owners clear added value with brand-strengthening, productivity-boosting and environment-enhancing packaging solutions.
During the quarter we also earned recognition in the form of the packaging world’s finest design award, Pentawards Best of the Show, which went to NINE, Billerud’s innovation and design agency, as well as Design Challenge 2011 at the largest packaging fair in the Nordic region which was won by Chesapeake’s new Impressions™ packaging range based on Billerud FibreForm®.
Even though the current market situation is uncertain, I view the future with great confidence. We feel well equipped to deal with the challenges and opportunities that lie ahead.”
Billerud’s CEO Per Lindberg and CFO Susanne Lithander will present the interim report at a press and analysts conference on Friday, 28 October at 10.30 CET.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm.
For further information in connection with this report, please contact Per Lindberg, President and CEO, +46 702 481 517 and Susanne Lithander, CFO, +46 730 370 874.
This information is such that Billerud AB is required to disclose under the Securities Market Act. Submitted for publication at 07.45 CET on 28 October 2011. This report has been prepared in both a Swedish and an English version. In the event of variations between the two, the Swedish version shall take precedence. The report has not been reviewed by the company’s auditors.
Billerud – “The Natural Part in Smarter Packaging”. Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. Billerud has a world-leading market position within primary fibre-based packaging paper. Billerud has annual sales of around SEK 9 000 million and is listed on NASDAQ OMX Stockholm. www.billerud.com