Financial statement January-December 2008

Financial statement January-December 2008

Submitted for publication at 12 noon on 11 February 2009

                          Quarter                      Full year
               2008        2008        2007                       
                IV          III         IV         2008         2007
Net            1 709       2 038      2 068       7 792        7 758
turnover,
MSEK                          
Operating       -165         126        243         289          590
profit/
loss, MSEK                      
Operating        -10           6         12           4            8
margin, %                     
Profit/loss     -222          89         209         124          473
after
financial
items ,
MSEK                             
Net profit/      -98          63          153         152         336
loss, MSEK                       
Earnings       -1.89        1.22         2.96        2.96         6.52
per share,
SEK                            

Full year 2008 compared with 2007
• Net turnover was MSEK 7,792 (7,758).
• Net profit was MSEK 152 (336), and earnings per share were SEK 2.96 (6.52).
• Operating profit was MSEK 289 (590), a decrease of 51% or MSEK 301.
• The operating margin was 4% (8). 
• Cash flow from operating activities increased to MSEK 791 (730).

Final quarter 2008 
• Operating loss was MSEK -165, compared with an operating profit of MSEK 126 in
the third quarter.
• Markets for long-fibre sulphate pulp and sack paper deteriorated strongly,
which led to a decision to implement a market-related production stop at the end
of the quarter.
• A planned maintenance stop was carried out at Gruvön mill.
• A new three-year syndicated credit facility of MSEK 450 was agreed.

Proposed dividend
The Board proposes that this year's profits be used to strengthen the company's
equity and no dividend be paid for 2008.

Outlook for 2009 
• There is great uncertainty about market development. The situation for sack
paper and market pulp weakened considerably in the final quarter, although other
segments were relatively stable.
• A reduction in global inventories to normal levels is needed to restore
profitability in the market pulp segment.
• There are good prospects for relatively stable development in packaging paper
segments where Billerud works closely with end-users and is a leader in quality.
• Cost savings are continuing according to plan and are expected to amount to at
least MSEK 250 annually by the end of 2009, while investment levels will be
reduced to half during 2009.
• An improved currency situation and falling prices for wood materials will have
positive effects over time.

For further information in connection with this report, please contact Per
Lindberg, President and CEO, +46 8 553 335 01 or 
+46 70 248 15 17 and Bertil Carlsén, CFO, +46 8 553 335 07 or +46 730 211 092 

Billerud's President Per Lindberg and CFO Bertil Carlsén will present the
financial statement at a press conference for analysts and journalists today at
3 p.m. Location: Lecture Hall, Salénhuset, Norrlandsgatan 15, Stockholm.
You can see the conference at www.billerud.se

Billerud is a packaging paper company with a business concept to supply
customers with innovative and high quality packaging paper. A consistent
concentration on attractive market segments and a strong customer focus are
cornerstones of Billerud's strategy. Billerud focuses on kraft paper and
containerboard and has a world-leading position within several product segments.
The company's production units are among the most cost-efficient in Europe for
these products.