Interim report January-September 2008 Submitted for publication at 12 noon on 13 November 2008 Quarter January-September 2008 2008 2007 III II III 2008 2007 Net turnover, MSEK 2 038 1 949 1 874 6 083 5690 Operating profit/ loss, MSEK 126 114 153 454 347 Operating margin, % 6 6 8 7 6 Profit/loss after financial items , MSEK 89 77 122 346 264 Net profit/ loss, MSEK 63 57 85 250 183 Earnings per share, SEK 1.22 1.11 1.65 4.85 3.56 January-September 2008 compared with January-September 2007 · Net turnover was MSEK 6,083 (5,690). · Net profit was MSEK 250 (183). · Earnings per share were SEK 4.85 (3.56). · Operating profit was MSEK 454 (347). · From the end of the second quarter the business cycle and demand for most of Billerud's products continued to weaken. The market for market pulp has significantly weakened. · Market-related production curtailments have been carried out within some product areas, amounting to around 3% of production capacity during the second and third quarter. · Investment amounting to MSEK 370 in rebuilds of kraft paper machines PM2 and PM7, and investment in a new customer and order management system, was completed during the third quarter according to plan. Outlook for 2008 · Market demand for Billerud's products is expected to continue weakening in areas relating to industrial production but to be stable in areas relating to food production and healthcare. The development is however uncertain. · Additional production curtailments are expected to be necessary in the fourth quarter, which will affect profits negatively. · An improved currency situation and tendency towards lower prices for wood and input materials will have positive effects in the longer term. · Further measures for cost reductions will be initiated, with an expected effect of MSEK 100 in annual savings in addition to the MSEK 150 previously announced. · A planned maintenance stop will be carried out at Gruvön mill in the fourth quarter, which normally means extra costs of around MSEK 100. 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 journaliststoday, 13 November, at 3 p.m. Location: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm. Billerud is a packaging paper company with a business concept to supply customers with innovative and high quality packaging paper. A consistent concentration on attractive market segments and a strong customer focus are cornerstones of Billerud's strategy. Billerud focuses on kraft paper and containerboard and has a world-leading position within several product segments. The company's production units are among the most cost-efficient in Europe for these products.
Interim report January-September 2008
| Source: BillerudKorsnäs AB