Year-end Report for 2007
Quarter Full year
MSEK 4-07 3-07 4-06 2007 2006
Net turnover 5 073 4 637 4 830 19 159 18 592
Operating
profit 1 039 642 590 2 843 2 303
Operating
profit excl.
items
affecting
comparability* 482 642 590 2 286 2 303
Profit after
tax 341 438 369 1 505 1 459
Earnings per
share, SEK 4.0 5.2 4.4 17.8 17.2
Return on 8.1 10.6 9.0 9.2 9.0
equity, %
* Items affecting comparability relate to a write-down of MSEK 569 in
goodwill and of MSEK 1 034 in tangible fixed assets within Holmen Paper,
a reversed write-down of MSEK 60 within Holmen Timber, and a positive
revaluation of forests by MSEK 2 100 within Holmen Skog, all of which
were taken into the accounts in the fourth quarter of 2007.
· The Group's net turnover for 2007 amounted to MSEK 19 159 (2006:
18 592).
· Profit after tax was MSEK 1 505 (1 459).
· Earnings per share amounted to SEK 17.8 (17.2). Return on equity was
9.2% (9.0).
· The Board proposes an unchanged dividend of SEK 12 per share.
· The operating profit for 2007 was MSEK 2 843 (2 303). This figure
includes a net amount of MSEK 557 in respect of items affecting
comparability from the fourth quarter, of which income of MSEK 2 100 is
due to the revaluation of forests, cost of MSEK 1 603 is a consequence
of write-down of goodwill and tangible fixed assets within Holmen Paper
and income of MSEK 60 is an effect of the reversal of an earlier write-
down within Holmen Timber. Items affecting comparability increases the
after-tax result by MSEK 36.
· The operating profit excluding items affecting comparability amounted
to MSEK 2 286 (2 303). The result was favourably affected by higher
prices, while it was adversely affected by higher costs of wood and
recovered paper, extensive maintenance and rebuilding stops, and lower
deliveries.
· The operating profit for the fourth quarter, excluding items
affecting comparability, amounted to MSEK 482, which was MSEK 160 lower
than for the third quarter. The fourth quarter was favourably affected
by higher delivery volumes, while costs increased owing to seasonal
factors. The third-quarter result included capital gains of MSEK 105 on
sale of shares.
· The market situation for newsprint in Europe improved slightly and
deliveries were high during the fourth quarter. Deliveries of newsprint
in Europe were unchanged during 2007 as a whole. Also Holmen Paper's
deliveries in 2007 were broadly unchanged. The prices of Holmen Paper's
products were on average 2% higher than in the previous year.
· The market situation for virgin fibre board in Europe was firm during
the fourth quarter. Iggesund Paperboard's products remained in good
demand, but deliveries for the full year declined by 4% due to an
extensive production stop for rebuilding. Prices were raised during the
second half of the year.
For further information please contact:
Magnus Hall, President and CEO, tel +46 8 666 21 05
Anders Almgren, CFO, tel +46 8 666 21 16
Christer Lewell, Public Relations Director, tel +46 8 666 21 15.
Year-end Report for 2007
| Source: Holmen AB
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