Production problems negatively impact BillerudKorsnäs results for the second quarter of 2013
BillerudKorsnäs second quarter results are negatively impacted by production problems in June in conjunction with the start-up of KM5 in Frövi after extensive remodeling. Earnings are also impacted by higher non-recurring integration costs and restructuring. Operating profit for the second quarter of 2013 will amount to approximately SEK 255 million and adjusted for non-recurring items operating profit will amount to approximately SEK 318 million
"We have done extensive remodeling of KM5 in Frövi with two weeks of downtime where we have created a platform for capacity expansion of 30 Ktonnes per year to 450 Ktonnes per year and improved product quality. At the start-up in June, we were hit by a number of unpredictable disruptions and complications. However, it is not uncommon that this happens in connection with such a large rebuild. Production has stabilized and is currently in line with expectations, although some minor planned adjustments remain. Although our quarterly results, especially in the latter part of June, has been charged with a number of events and one-off costs, the underlying operational performance of the Group remains stable. Our view of the future possibilities have not changed and we are very positive about the future of BillerudKorsnäs "says Per Lindberg, President & CEO.
The periodic maintenance shutdown in Frövi with subsequent complications have had a total negative impact of about SEK115 million on operating profit for the second quarter compared with the first quarter.
The company also had higher non-recurring costs of integration and restructuring of SEK 36 million compared to the first quarter. SEK 24 million due to timing of integration costs and SEK12 million due to restructuring costs in Karlsborg for cost-cutting measures in the form of shift rescheduling. The assessment totaling about SEK 200 million in integration costs for 2013 and the first half of 2014 are not affected. The costs in Karlsborg are not related to integration and will consequently be in addition.
BillerudKorsnäs adjusted operating profit for the second quarter of 2013 is expected to amount to approximately SEK 318 million. Non-recurring costs are estimated to approximately SEK 63 million and reported operating profit is expected to amount to approximately SEK 255 million. The results are still preliminary and have not been reviewed by the auditors.
BillerudKorsnäs will publish its interim report for the second quarter of 2013 at 10:00 on 18 July 2013.
For more information, please contact:
Susanne Lithander, Chief Financial Officer +46 (0) 8 553 335 00
The information is such that BillerudKorsnäs AB (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publishing at 15.00 CET on 5 July 2013.