(For complete interim report see attached file)
• Income after net financial items amounted to SEK 52 million for the third
quarter of 2014, compared with a profit of SEK 31 million for the second
quarter of 2014 and a loss of SEK -91 million for the third quarter of
2013. Income after net financial items amounted to SEK 102 (-115) million
for the period January to September. The comparison period 2013 included
one-off items that amounted to SEK ‑92 million.
• A strong market meant that the average PIX price for NBSK continued to rise
during the third quarter and amounted to an average of USD 929. The price
increase in Swedish kronor amounts to seven per cent compared with the
second quarter of 2014. The price increase in SEK amounts to approximately
14 per cent compared with the third quarter of 2013.
• Cash flow from operating activities amounted to SEK 92 (47) million for the
third quarter of 2014. Net loan receivables amounted to SEK 44 (-9) million
on 30 September.
• Rottneros’ deliveries increased by five per cent over the year, while the
pulp market increased by one per cent.
Events after the end of the period
• Rottneros is selling the BCTMP equipment from Utansjö Bruk to
BillerudKorsnäs. The sale will affect the cash position positively with SEK
39 million.
CEO’S STATEMENT
Strong upward trend continues
It is with great delight and satisfaction that we are able to report a
continuing upward trend for the third quarter. The Group is showing an
operating profit of SEK 53 million, which is significantly better than the
levels reported in recent years. The operating profit for the first nine months
of the year amounted to SEK 106 million, representing an improvement of SEK 125
million compared with the same period of 2013.
Good market prospects and favorable currency trends have paved the way for this
significant improvement to our results. In addition to this, internal measures
with a clear focus on structured working methods have brought good order to our
mills within a short period of time. This will also increase production
availability in the future.
We are continuing to work on a broad front to build a new Rottneros. Modern and
cohesive leadership represents a critical piece of the jigsaw for achieving
market leadership and sustainable profitability. By creating common core values
for all workers, we are laying the foundation for long-term success. For this
reason we launched an advanced leadership training program for all managers
within the Group after the summer. The next phase of this work will involve our
entire workforce. So far our ’Core value project’ has been successful and has
great prospects of proving to be of decisive importance for our future. Our
yearly maintenance stop in Vallvik was conducted during October and it went
successfully according to plan. The cost of the stop will affect the result for
the fourth quarter.
It is also pleasing that the process of selling the production equipment from
Utansjö Bruk has borne fruit after several years' work. The sale of the
equipment to BillerudKorsnäs, which is to be completed during the fourth
quarter, is expected to provide a cash injection of SEK 39 million.
The normal seasonal decline in August never emerged, and the strong demand
reached new heights in September. The market for softwood kraft pulp continues
to be strong and our order books are well filled for the fourth quarter.
Projects are being conducted at both mills that will further increase
productivity following the maintenance shutdown in the autumn.
To conclude, I am excited about the forthcoming quarter and the opportunities
that our extensive program of change will yield for the future.
Carl-Johan Jonsson
For more information, please visit Rottneros’ updated website,
www.rottneros.com.
This report has not been reviewed by the company’s auditors.
Stockholm, 23 October 2014
Carl-Johan Jonsson
Chief Executive Officer and President
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 October 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.
