(Tables included in attached PDF)
Fourth quarter 2013
· Net sales amounted to SEK 4 713 million, the same level as in the previous
quarter. Low sales volumes primarily caused by the planned maintenance shutdowns
and seasonal destocking negatively impacted net sales.
· Adjusted operating profit reached SEK 226 million. The decrease of SEK 105
million from the previous quarter was mainly attributable to higher fixed costs.
· Operating profits are negatively impacted by the maintenance shutdowns in
the production with approximately SEK 249 million.
· Towards the end of the fourth quarter results were negatively impacted with
SEK 70 million by unexpected production problems (as communicated on 21 January
Full year 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.
This makes comparisons in the numbers between 2012 and 2013 not applicable.
· The Board of Directors proposes a dividend of SEK 2.25 per share for 2013.
· The start of 2014 has been good and capacity utilisation is expected to
improve for business area Packaging Paper during the first quarter compared to
the fourth quarter.
· The outlook for all business areas is expected to remain stable during the
first quarter. For the remaining quarters of 2014 business areas Packaging Paper
and Containerboard are facing more competition.
· Prices in local currency are anticipated to stay on current level for the
next quarter for all business areas. Business areas Containerboard and Packaging
Paper are anticipating some pressure on prices in local currency beyond the
· Wood prices are expected to stay on current level for the first half of
· The target of approximately SEK 530 million in annual synergies and savings
is unchanged and is expected to be reached by the end of 2014.
Comments by BillerudKorsnäs’ CEO Per Lindberg:
Stable fourth quarter results impacted by production problems
“We have closed the books for the first successful year as the new company
BillerudKorsnäs. It has been a year of change and I am very pleased to see that
the integration is proceeding very well. The underlying performance in the
fourth quarter was strong even if the production towards the end of the year
suffered from some unexpected incidents. Our adjusted operating profit reached
SEK 226 million corresponding to an adjusted operating margin of 5%. This
includes some additional negative impact from the planned maintenance shutdowns
and the previously announced costs for production problems of SEK 70 million.
During the quarter business has been relatively stable. We mostly saw stable
demand, however with some typical year-end destocking. Prices were more or less
stable as well. The start of 2014 has been quite good and we will run production
on full capacity in the first quarter. The market will be more competitive and
we are anticipating some pressure on prices in local currency for some of the
products within business areas Containerboard and Packaging Paper beyond the
We continue to realise synergies in a rapid pace, and we continue to expect to
reach the target of SEK 530 million annual run-rate reduction during 2014. The
integration efforts in 2014 are moving into the next phase when many new systems
are implemented and new ways of working are introduced. Integration will
therefore continue to be a high priority.
In November we had our first Capital Markets Day where we communicated how we
are building a company to deliver value to customers and shareholders. It was
well received and gave us further confidence to continue in building a value
-creating world-class company for the long term.”
BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will
present the year-end report at a press and analyst conference at 10.00 CET on
Tuesday 18 February 2014.
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
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 18 February 2014. 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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