(Stock Exchange Release)
Kemira's December result fell far short from expectations causing
full year operating profits to fall below earlier guidance and
showing no growth on previous year's operating profits excluding
non-recurring items.
In addition, Kemira will take approximately EUR 47 million write
downs of assets in the final quarter of 2007. Despite of
disappointing results in the fourth quarter, Kemira Oyj' Board of
Directors proposes a dividend EUR 0.50 per share, an increase on 4%
over prior year.
Full-year revenue, operating profit and earnings per share were
earlier expected to improve from their 2006 levels. It is now
estimated that only revenue will show growth.
Kemira Specialty caused major part of the shortfall and made an
operating loss in the final quarter, primarily due to strikes at the
Pori site, non-recurring costs associated with personnel cuts, the
weak US dollar, and weak sales. The full-year operating profit
excluding write-down will be significantly lower than a year earlier;
approximately half of last year's profit.
Kemira Pulp&Paper also had a difficult December. The operating profit
for Kemira Pulp&Paper will fall short of last year's figures even
without the write-down, largely because of additional expenses
associated with the delays in the start-up of the Uruguay mill, high
price of energy at the year-end, and the weak US dollar. Write-down
and other non-recurring items excluded, Kemira Pulp&Paper's full-year
financial performance will be on a par with the previous year.
The operating profit for Kemira Water in the final quarter, excluding
write-down, will be on the previous year's level. Kemira Coatings'
performance reflected the seasonal nature of operations as in earlier
years, and will show a loss in the final quarter. Full-year
performance in both business areas will show reasonable growth from
the previous year.
In connection with the strategic review process currently under way
in Kemira, it was decided to take actions that will involve the
write-downs of approximately EUR 47 million. The write-down will be
recorded for the final quarter of 2007 and it will not affect the
cash flow. The effect of the write-down on business areas is as
follows: Kemira Pulp&Paper EUR 17 million, Kemira Water EUR 6
million, Kemira Specialty EUR 9 million, other business EUR 15
million."Despite the disappointing performance in the final quarter, we do
not anticipate any dramatic changes in the outlook for our market
areas. The uncertainty of the global economic development is
naturally a challenge for all of our business areas, but we have a
strong market and competitive position to meet our customers' global
demand" says Harri Kerminen, Kemira's President and CEO since the
beginning of the year.
Kemira will publish its financial statements bulletin on February 6,
2008.
Kemira Oyj
Timo Leppä, Executive Vice President, Group Communications
For further information, please contact:
Kemira Oyj
Harri Kerminen, President and CEO, tel. +358 10 862 1801
Kemira is a chemicals group made up of four business areas: Kemira
Pulp&Paper, Kemira Water, Kemira Specialty and Kemira Coatings.
Kemira is a global group of leading chemical businesses with a unique
competitive position and a high degree of mutual synergy.
In 2006, Kemira recorded revenue of around EUR 2.5 billion and had a
payroll of 9,000 employees. Kemira operates in 40 countries.
