┌────────────────┬───────┬───────┬──────┬───────┬──────┬───────┬───────┬──────┐
│Period in review│ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│ │Apr-Jun│Jan-Mar│ │Apr-Jun│ │Jan-Jun│Jan-Jun│ │
│ │ │ │change│ │change│ │ │change│
│ │2014 │ 2014 │ │2013 │ │2014 │2013 │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│Net turnover, │394 │380 │13 │369 │24 │773 │723 │50 │
│SEK m │ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│Operating │31 │21 │10 │-16 │47 │53 │-22 │75 │
│Income, SEK m │ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│ including │ │ │ │ │ │ │ │ │
│items affecting │31 │21 │10 │-4 │35 │53 │-10 │63 │
│comparability │ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│Income after net│ │ │ │ │ │ │ │ │
│financial items,│31 │20 │11 │-20 │51 │50 │-24 │74 │
│SEK m │ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│Profit/loss │24 │16 │8 │-20 │44 │39 │-24 │63 │
│after tax, SEK m│ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│Earnings per │ │ │ │ │ │ │ │ │
│share after tax,│0.16 │0.10 │0.06 │-0.13 │0.29 │0.26 │-0.16 │0.42 │
│SEK │ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│ including │ │ │ │ │ │ │ │ │
│items affecting │0.16 │0.10 │0.06 │-0.05 │0.21 │0.26 │-0.08 │0.34 │
│comparability │ │ │ │ │ │ │ │ │
├────────────────┼───────┼───────┼──────┼───────┼──────┼───────┼───────┼──────┤
│Cash flow before│ │ │ │ │ │ │ │ │
│investments, SEK│-3 │9 │-12 │-9 │6 │6 │12 │-6 │
│m │ │ │ │ │ │ │ │ │
└────────────────┴───────┴───────┴──────┴───────┴──────┴───────┴───────┴──────┘
• Profit after net financial items amounted to SEK 31 million for the second
quarter of 2014, compared with a profit of SEK 20 million for the first
quarter of 2014 and a loss of SEK -20 million for the second quarter of
2013. Profit after net financial items amounted to SEK 50 (‑24) million for
the first half of the year.
• A strong market has led to that the average PIX price for NBSK continued to
rise during the second quarter and amounted to an average of USD 924. The
price increase in Swedish kronor amounts to ten per cent compared with the
corresponding period of 2013. The price increase amounts to two per cent
compared with the previous quarter.
• Production continued to be stable at Vallviks Bruk during the second
quarter, which resulted in lower direct costs and had a positive impact on
the result.
• The increase in working capital had a negative impact on cash flow of SEK
73 million, mainly due to the high level of invoicing in June. Cash flow
from operating activities amounted to SEK -3 (-9) million for the second
quarter of 2014. Net borrowing amounted to SEK ‑42 (‑45) million on 30
June.
(For table, see attached file)
CEO’S STATEMENT
The journey continues – a strong first half year for Rottneros
I would like to start by saying that I am very satisfied with our performance
during the first six months of this year, which resulted in an operating profit
of SEK 53 million, a level we have not been close to achieving since the first
half year of 2011.
Our strong focus on management by objectives and new working methods combined
with clear leadership has brought good order and improved production
availability. Stable market conditions together with our programme of change
have resulted in a strong first half year.
Our programme of change – Focus15 – continues to be pursued vigorously within
our operations. New working methods have, among other things, resulted in more
stable production and fewer production hours lost at Vallviks Bruk compared
with previously. We are running several parallel projects to increase our
capacity, which are expected to yield results after the annual maintenance
shutdown in the autumn. The operation at Rottneros Bruk has performed well,
with more stable production and continued good demand during the second
quarter.
We are launching an advanced leadership training programme in the autumn. Our
work to develop modern, uniform leadership with clear management by objectives
represents an integral component of our programme of change and is both a vital
and central part of our plan to become a market leader.
The paper pulp market remains stable and demand is being underpinned by the
moderate recovery of the world economy. Capacity utilisation for long‑fibre
sulphate pulp was 93 per cent for the year, which must be considered good, and
the price of NBSK has been USD 925 per tonne for some time now.
In conclusion, I am looking forward to an exciting second half to the year and
to seeing the future effects of Focus15.
Carl-Johan Jonsson
(For full report, including tables, please 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 23 July 2014 at 08.30. A Swedish and an English
version of this report have been drawn up. The Swedish version shall prevail in
the event of differences between the two reports.
