(Tables included in attached PDF)
Third quarter 2013
· Net sales amounted to SEK 4 715 million, down 5% compared to the previous
quarter. The decrease was due to lower sales volumes primarily caused by the
planned maintenance shutdowns.
· Adjusted operating profit reached SEK 331 million. The increase of SEK 13
million from the previous quarter was mainly attributable to lower fixed costs.
· Operating profits are negatively impacted by the maintenance shutdowns in
the production with approximately SEK 209 million.
· Integration and realisation of synergies are progressing well and
accumulated synergies of approximately SEK 200 million have been realised,
whereof approximately SEK 80 million relate to the third quarter.
January-September 2013 compared with the same period in 2012
The increase in both net sales and adjusted operating profit was due to the
acquisition of the two paper machines in Finland in June 2012 and the
combination with Korsnäs in November 2012. Today, BillerudKorsnäs has a stronger
platform for future growth on the attractive and expanding packaging market.
· The target of approximately SEK 530 million in annual synergies and savings
is expected to be reached already in 2014.
· Demand in business areas Consumer Board and Containerboard is expected to
remain stable during the fourth quarter. Business area Packaging Paper expects a
normal market situation during the fourth quarter, except for sack paper where
demand is expected to be lower than normal and production will not run at full
· Prices in local currency are anticipated to stay on current level for the
· Wood prices are expected to stay on current level for the coming quarter and
first half of 2014.
· The maintenance shutdown in Skärblacka will impact the fourth quarter
negatively as part of the shutdown occurred in October and the start-up was a
few days delayed.
Comments by BillerudKorsnäs’ CEO Per Lindberg:
On track to reach synergy targets ahead of plan
“Third quarter’s results show a stable performance. Our adjusted operating
profit reached SEK 331 million corresponding to an adjusted operating margin of
7% which, taking the negative impact from the planned maintenance shutdowns into
consideration is satisfactory.
The quarter has been very eventful in our production units with two planned
maintenance shutdowns in Karlsborg and Skärblacka. After some delay in
Skärblacka in connection with the major rebuild, all machines are now up and
running again and performing as planned.
During the quarter, we have agreed on new long-term contracts with all major
customers for liquid packaging board, which will contribute to long-term
stability of demand. In general, however, the European market currently
continues sideways, without strong signs of improvement. We therefore strengthen
our efforts to increase sales outside Europe in markets with more healthy demand
and we re-allocate resources from Europe to these areas.
The Board of Directors have approved an investment in one of the board machines
in Gävle amounting to approximately SEK 220 million. The purpose of the
investment is to increase machine capacity with approximately 10% to support
further growth within the attractive liquid packaging board market. The
investment will also improve both cost efficiency and product quality and the
rebuild will take place during the planned maintenance shutdown next year.
During the quarter the remaining 70% of the shares in PACCESS Packaging LLC in
the US were acquired. This is strengthening BillerudKorsnäs’ position to bring
smarter packaging solutions to brand owners and is a further step in challenging
The integration efforts are progressing relentlessly and I am pleased to end on
the note that we now have realised synergies corresponding to an annual pace of
approximately SEK 300 million. The synergy targets are expected to be reached
approximately a year ahead of plan during 2014.
Finally, I just want to remind you of our Capital Markets Day on 14 November
2013, in Stockholm. I hope to meet many of you there.”
BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will
present the interim report at a press and analyst conference at 10.00 CET on
Wednesday 30 October 2013.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm, Sweden.
For further information, please contact:
Per Lindberg, President and CEO +46 (0)8 553 335 00
Susanne Lithander, CFO, +46 (0)8 553 335 00
Sophie Arnius, Investor Relations & Financial Media Director, +46 (0)70 590 80
The information in this report is such that BillerudKorsnäs AB (publ) is obliged
to disclose under the Swedish Securities Market Act and was submitted for
publication at 07.00 CET on 30 October 2013. This report has been prepared in
both a Swedish and an English version.
BillerudKorsnäs – Packaging manufacturers and brand owners are offered added
value in the form of brand-strengthening, productivity-boosting and environment
-enhancing packaging solutions. BillerudKorsnäs has a world-leading market
position within primary fibre-based packaging paper. The company has annual
sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm.
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