Interim report January-September 2010

Interim report January-September 2010

Submitted for publication at 07.45 CET on 29 October 2010. 

(Tables included in attached PDF) 

January-September 2010 compared with the same period in 2009

  · Net sales amounted to SEK 6 549 million (5 700), an increase of 15%.
  · Profit for the period amounted to SEK 480 million (5).
  · Earnings per share amounted to SEK 4.66 (0.07).
  · Operating profit amounted to SEK 711 million (69), corresponding to
a margin of 11% (1). 

July-September 2010 compared with April-June 2010

  · Net sales amounted to SEK 2 251 million (2 108), an increase of 7%.
  · Operating profit amounted to SEK 276 million (201). The 37% increase
is mainly attributable to improved prices as well as lower costs for
periodic maintenance shutdowns. No periodic maintenance shutdowns are
planned for the forth quarter.
  · The strong order situation continued during the third quarter.
  · After the end of the quarter, the anticipated compensation of SEK 77
million related to the strike during the second quarter was received
from the Confederation of Swedish Enterprise.  

Outlook for the full-year 2010

  · The order situation remains good or very good within most of
Billerud's packaging paper areas, which should enable a continued
positive development within Billerud's segments for packaging paper and
packaging paper solutions.
  · Further price increases for some of Billerud's packaging paper
products have been announced for the fourth quarter.
  · Lower market prices and a weaker USD will have a negative impact on
the operating margin for the Market Pulp business area.

 

Comments by Billerud's CEO Per Lindberg:
Strong development for Billerud's packaging paper in terms of both
earnings and new solutions
“We are very pleased with the results for the third quarter as well as
the underlying earnings for all our business areas. The strong
development for Billerud's main area, packaging paper, led to an
improvement in operating profit to SEK 276 million for the third
quarter. This result corresponded to an operating margin of 12% compared
with the 11% average over the last three quarters. This improvement is
due to good demand and continued efforts to improve margins and value
creating packaging paper solutions. 

We have just launched our first product where we combine two renewable
materials; paper and bioplastic. The result is an effective and
climate-smart sack solution with a moisture barrier. We can see a number
of opportunities ahead of us where our close dialogue with end
customers, combined with our expertise within packaging paper and
bioplastics, will lead to new packaging solutions with increased value
creation for our customers. This applies in particular to customers who
set a high value on packaging their products in climate-smart packaging
made from renewable materials. 

Following our receipt of the “Technology Innovation Award 2010” in China
for our FibreForm® product in the previous quarter, the number of
customer enquiries and development cooperations relating to FibreForm®
has further increased. We feel strengthened by the fact that our
long-term focus on development work close to the customer, and
innovative product development, will give us future opportunities for a
continued positive margin development within packaging paper.” 

Billerud's CEO Per Lindberg and CFO Bertil Carlsén will present the
interim report at a press and analysts conference on Friday, 29 October
at 13.30 CET. 

Venue: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm.

 

For further information in connection with this report, please contact
Per Lindberg, President and CEO, +46 702 481 517 and Bertil Carlsén,
CFO, +46 730 211 092 

This information is such that Billerud AB is required to disclose under
the Securities Market Act. This report has been prepared in both a
Swedish and an English version. In the event of variations between the
two, the Swedish version shall take precedence. The report has not been
reviewed by the company's auditors. 

Billerud is a packaging paper company. The business concept is to offer
customers packaging material and solutions that promote and protect
their products - packaging that is attractive, strong and made of
renewable material. Billerud has a world-leading position within several
product segments, both within paper for consumer packaging and for
industrial applications. Production takes place at the Group's three
integrated pulp and paper mills in Sweden, and at a paper mill in the
UK.

www.billerud.com