Klippan's Interim Report January - September 2002


KLIPPAN, Sweden, Oct. 28, 2002 (PRIMEZONE) -- Klippan AB:

- Profit after net financial items MSEK 47.1 (15.1)

- Weakened order situation

- The acquisition of Klippan Molndal has contributed to an improved result

General

Klippan AB bought Stora Enso Molndal AB as of 2 April 2002, whereupon this company changed its name to Klippan Molndal AB. The acquisition has meant that certain historical comparison figures are not relevant.

Sales

The European market for fine paper weakened further during the third quarter. This applied in particular to the uncoated qualities, which showed a reduced order intake of some 4% compared to last year. Prices are under pressure for coated paper, where there is some 20% over capacity on the market. The seasonal recuperation during the autumn was delayed this year, which in turn has affected the market for pulp negatively.

Klippan's order book was reduced during the third quarter and now amounts to only 1-2 weeks, compared to the normal 3-4 weeks. The sales volume during the year increased by approximately 4%. Price levels for the most important products have been maintained.

Production Like in previous years, the mills at Klippan and Lessebo have had a four week holiday closure during the third quarter, while the mill at Molndal has continued production throughout summer. The strategic relocation of production between the mills has started. It has thus been possible to utilize the plant at Molndal efficiently during the time when the mills at Klippan and Lessebo had their maintenance closures.

The relatively weak order intake after the holiday has meant that certain machines have been standing still for a few days towards the end of the period.

The year's production of paper amounted to 108,300 tons (67,800). Klippan Molndal's proportion of the manufacturing was 35,400 tons. Pulp manufacture increased by just over 700 tons to 21,300 tons.

This information was brought to you by Waymaker http://www.waymaker.net

The following files are available for download:

http://www.waymaker.net/bitonline/2002/10/28/20021028BIT01050/wkr0001.doc The Full Report

http://www.waymaker.net/bitonline/2002/10/28/20021028BIT01050/wkr0002.pdf The Full Report