Strong development for Billerud's packaging paper in terms of both earnings and new solutions

Strong development for Billerud's packaging paper in terms of both
earnings and new solutions

CEO Per Lindberg comments on the development during Q3 2010:

“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.”

Solna, 29 October 2010
Billerud AB (publ)

 

Per Lindberg
President and CEO

For further information please contact:
Per Lindberg, President and CEO, +46 8 553 335 01 or +46 70 248 15 17
Bertil Carlsén, CFO, +46 8 553 335 07 or +46 73 021 10 92

The information is such that Billerud is obligated to publish under the
Swedish Securities Market Act. Submitted for publication at 07.47 CET on
29 October 2010.