• Income after net financial items amounted to SEK 6 (-120) million for the
full year 2012. The result for the previous year included total write-down
and one-off costs of SEK -148 million.
• Income after net financial items amounted to SEK 0 million for the fourth
quarter of 2012 compared with a loss of SEK -44 million for the same
quarter of the previous year. Cash flow from operating activities amounted
to SEK ‑8 (‑22) million for the fourth quarter of 2012 and SEK 41 (35)
million for the full year 2012.
• The Board proposes a dividend of SEK 0.10 (0.10) per share for the
financial year 2012.
• Arctic Paper S.A. made a public takeover bid for all of the Rottneros
shares in November; this offer has been extended to 4 February 2013 owing
to poor support. Arctic Paper’s shareholding amounted to 39.4% of the total
number of shares at the turn of the year.
• A decision was made to continue production of groundwood pulp at Rottneros
The operating surplus (referred to internationally as ‘EBITDA’) amounted to SEK
61 million for the full year 2012. The corresponding figure for the previous
year was SEK 97 million. The result after net financial items (EBT) was once
more in the black at ‘zero’ for the fourth quarter of the year and SEK 6
million for the full year. This is not a great result, although we are pleased
to have been able to produce a profit in a year that was tough for many pulp
manufacturers. Those of us based in Sweden not only had to struggle with an
increasingly weak global economy but were also subject to a very strong Swedish
currency during the autumn.
Despite things not running smoothly throughout the world, the consumption of
pulp rose by approximately three per cent, slightly more for softwood and
slightly less for hardwood. The demand outlook for 2013 appears as though it
will remain more or less the same. Prices, which increased during the first
half of 2012, peaked at just over USD 850 per tonne to fall by around USD 100
per tonne during the summer and autumn and subsequently rise again to just over
USD 800 per tonne by the end of the year. Global stocks fell during the autumn,
particularly for softwood pulp, so that we are entering 2013 with some positive
market momentum. Total global manufacturing capacity for softwood pulp will
fall rather than rise in 2013 as several pulp mills are being built or
converted for other grades. Together with the increase in demand, capacity
utilisation is likely to increase, and price trends should therefore continue
Focusing specifically on Rottneros, we have during the year, successfully
continued our move towards more sales within customer segments having specific
requirements, where our raw materials and process equipment can prove their
worth. This will reduce our exposure to the constrained and less specialised
printing paper market. This applies to both mechanical and chemical pulp and is
a development that we will continue in 2013. Our sales for different filter
applications continue to increase slowly but surely. Deliveries to board
manufacturers with an express requirement for bulk are steadily growing. The
market for our customers within electrical applications has been tough, with a
temporary reduction in infrastructure investments and consequently lower
deliveries, which meant that our sales fell despite retaining market shares. On
the cost side, both our variable and fixed costs have fallen. It was primarily
the cost of timber that fell during the autumn, and then remained stable during
the winter. All-in-all, comparing 2011 with 2012, variable costs per tonne
reduced by almost ten per cent. The corresponding figure for fixed costs per
tonne for Rottneros Mill is over ten per cent despite falling production, and
slightly less than ten per cent for Vallvik Mill thanks to our annual
production record of almost 209,000 tonne, of which we are proud. Rottneros
Mill produced a small positive operating surplus for 2012 despite the ongoing
programme of staff cuts. The cash flow after investments amounted to SEK 17
million. Vallvik Mill’s operating surplus is SEK 55 million and has exceeded
SEK 350 million for the past three years. This surplus is being reinvested in
the mill. We do not intend to provide this kind of mill-specific result on an
ongoing basis, but consider it was justified to do so on this occasion as in
the course of last year certain information appeared in the media that conveyed
Arctic Paper SA announced in early November 2012 an offer to all of the
Rottneros shareholders to exchange their shares in Rottneros AB for shares in
Arctic Paper. The intention was to subsequently merge the companies. A large
number of shareholders declined the offer, for which reason a merger of the
companies did not take place. A merger of the companies – with one management
team and one income statement/balance sheet – could have realised substantial
synergies. Rottneros is now continuing as an independent company, though with a
different shareholder structure, where the shareholding within the sphere of
influence of the main owner company increased from 20% to 40% while virtually
all of the bank shareholdings have been relinquished. As we are two independent
companies, only transactions for the benefit of both parties and all
shareholders will be concluded, that is to say as is the situation is at
present and as it has been for many years. We will continue to develop our
ongoing business and further improve our supplier and customer relationships.
Our doors are open to the discussion promised by Arctic Paper SA in respect of
synergies, even without a merger. Any way of improving Rottneros is welcome.
In conclusion, I would like to express my appreciation for the significant
shareholder support expressed both by telephone calls and by email in recent
CEO and President
This interim report has been prepared in accordance with IAS 34 ‘Interim
Financial Reporting’, which complies with Swedish law through the application
of the Swedish Financial Reporting Board’s Recommendation RFR 1 ‘Supplementary
Accounting Rules for Groups’ together with RFR 2 ‘Accounting for Legal
Entities’, in respect of the parent company.
The accounting principles, definitions of key ratios and calculation methods
are the same as those used in the last annual report.
FORECAST FOR 2013
The company is not providing an earnings forecast for 2013.
FORTHCOMING FINANCIAL INFORMATION
18 April 2013 Interim Report January-March 2013
18 July 2013 Interim Report January-June 2013
22 October 2013 Interim Report January-September 2013
24 January 2014 Year-end Report for 2013
The AGM for Rottneros AB will be held in Stockholm on Thursday, 18 April 2013.
For more information, please visit Rottneros’ updated website,
Stockholm, 24 January 2013
CEO and President
This report has not been reviewed by the company's auditors.
Rottneros AB (publ)
Corp. ID no. 556013-5872
Box 70 370, SE-107 24 Stockholm, Sweden
Tel. +46 8 590 010 00, fax +46 8-590 010 01
(For full report, see attached file)
Rottneros discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. This information was
submitted for publication on 24 January 2013 at 08.00 CET. A Swedish and an
English version of this report have been drawn up. The Swedish version shall
apply in the event of differences between the two reports.
Rottneros is a supplier of customised and high quality paper pulp with its
origins dating back to the 17th century. Rottneros adapts its product range to
meet the needs and high expectations of customers by continuously developing
its products and providing a high level of supply reliability, technical
support and service.
Rottneros has an annual total production capacity of almost 400,000 tonnes of
pulp at two mills in Sweden. Increasingly intensive product development in line
with the requirements of customers will result in profitability that is higher
and more stable throughout the business cycle.
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