Interim report January-June 2008

Interim report January-June 2008

Submitted for publication at 9 a.m. on 24 July 2008

                          Quarter                     January-June
               2008        2008        2007                       
                II           I          II         2008         2007
Net               1 949       2 096       1 884       4 045        3 816
turnover,
MSEK
Operating           114         214          17         328          194
profit,
MSEK
Operating             6          10           1           8            5
margin, %
Profit/loss          77         180          -9         257          142
after
financial
items ,
MSEK
Net profit/          57         130          -9         187           98
loss, MSEK
Earnings           1.11        2.52       -0.17        3.63         1.91
per share,
SEK

January-June 2008 compared with January-June 2007 

·        Net turnover was MSEK 4,045 (3,816). 
·        Net profit was MSEK 187 (98). 
·        Earnings per share were SEK 3.63 (1.91). 
·         Operating profit climbed by 69% to MSEK 328 (194).
·        The market situation and demand weakened on most of Billerud's markets
towards the end of the period. 
·        Supplies of wood were good. So far this year wood costs have remained
at the same high level established in the second half of 2007.
·         The operating margin was 8% (5).

April-June 2008 compared with January-March 2008 

· Demand weakened on most of Billerud's markets due to a generally weaker
business cycle and inventory adjustments in the customer chain. Production in
the second quarter was reduced slightly to compensate for weaker demand. Prices
in local currency are mainly unchanged.
· Cost reductions of MSEK 29 per year were achieved during the quarter within
the framework to reduce costs per year by MSEK 150 up to the end of 2009, as
announced in the first quarter of 2008.

Outlook for 2008 
· The general business cycle has weakened on Billerud's markets.
· The tendency is for the cost of most input materials to continue rising.
· To maintain profitability at the current level, price increases and/or
improvements in the product mix will be necessary, along with continued focus on
cost savings.

For further information in connection with this report, please contact:  Per
Lindberg, President and CEO, 

+46 8 553 335 01 or +46 70 248 15 17 and Bertil Carlsén, CFO, +46 8 553 335 07
or +46 730 211 092 

Billerud's President Per Lindberg and CFO Bertil Carlsén will present the
interim report at a webcasted press conference for analysts and journalists
today, 24 July, at 12.30. 
Location: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm.