Interim report January-September 2011

Interim report January-September 2011

Submitted for publication at 07.45 CET on 28 October 2011

(Tables included in attached PDF)

January-September 2011 compared with the same period in 2010

  · Net sales amounted to SEK 7 257 million (6 549), an increase of 11%.
  · Operating profit amounted to SEK 903 million (711), corresponding to
a margin of 12% (11).
  · Profit for the period amounted to SEK 638 million (480).
  · Earnings per share amounted to SEK 6.19 (4.66).
   

July-September 2011 compared with April-June 2011

  · Net sales amounted to SEK 2 327 million (2 383).
  · Operating profit amounted to SEK 296 million (275). The increase is
mainly due to lower costs including lower costs for periodic maintenance
shutdowns and lower costs for inputs.
  · The order situation weakened during the quarter.
  · Prices in local currency for the packaging paper segments were
stable compared with the second quarter. Price pressure increased,
however, towards the end of the quarter.
  · Market-related shutdowns were implemented during the quarter,
primarily relating to sack paper, in order to restore the balance in the
market.

 

Outlook for the full-year 2011

  · Market development at the start of the fourth quarter was marked by
some uncertainty about demand. Customers have continued to reduce their
packaging paper stock levels, which is having a negative impact on
orders. Underlying demand, however, is estimated to be relatively stable
in most segments.
  · The start of the fourth quarter has been characterised by continued
price pressure.
  · Billerud continues its efforts to increase the proportion of sales
of packaging paper solutions, i.e. material combined with services in
order to create conditions for a relatively more stable development.

 

Comments by Billerud's CEO Per Lindberg:
Strong earnings and very strong cash flow
“Billerud can deliver yet another strong result for the third quarter
with an operating margin of 13%. Cash flow from operating activities
amounted to SEK 531 million, which is very strong. Operating profit for
the quarter of SEK 296 million means that earnings for the third quarter
were just as strong as in the previous quarters in 2011. This was
achieved despite periodic maintenance and market-related shutdowns. So
the weaker market situation during the quarter was not reflected in the
figures. In the packaging paper segments, we maintained the price level
in local currency, but in the latter part of the third quarter we felt
some price pressure from the market.

Our work to strengthen Billerud's brand as “The Natural Part in Smarter
Packaging” was launched when Billerud opened NASDAQ OMX in New York on
26 September. This clarifies our position as a more customer- and
solutions-oriented company and we offer packaging manufacturers and
brand owners clear added value with brand-strengthening,
productivity-boosting and environment-enhancing packaging solutions.

During the quarter we also earned recognition in the form of the
packaging world's finest design award, Pentawards Best of the Show,
which went to NINE, Billerud's innovation and design agency, as well as
Design Challenge 2011 at the largest packaging fair in the Nordic region
which was won by Chesapeake's new Impressions™ packaging range based on
Billerud FibreForm®.

Even though the current market situation is uncertain, I view the future
with great confidence. We feel well equipped to deal with the challenges
and opportunities that lie ahead.”

Billerud's CEO Per Lindberg and CFO Susanne Lithander will present the
interim report at a press and analysts conference on Friday, 28 October
at 10.30 CET.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm.
 
 

For further information in connection with this report, please contact
Per Lindberg, President and CEO, +46 702 481 517 and Susanne Lithander,
CFO, +46 730 370 874.

This information is such that Billerud AB is required to disclose under
the Securities Market Act. Submitted for publication at 07.45 CET on 28
October 2011. 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 - “The Natural Part in Smarter Packaging”. Packaging
manufacturers and brand owners are offered added value in the form of
brand-strengthening, productivity-boosting and environment-enhancing
packaging solutions. Billerud has a world-leading market position within
primary fibre-based packaging paper. Billerud has annual sales of around
SEK 9 000 million and is listed on NASDAQ OMX Stockholm.
www.billerud.com