Strong earnings and very strong cash flow

Strong earnings and very strong cash flow

 

CEO Per Lindberg comments on the development during Q3 2011:

“Billerud can deliver yet another strong result for the third quarter
with an operating margin of 13%. Cash flow from operating activities
amounted to SEK 531 million, which is very strong. Operating profit for
the quarter of SEK 296 million means that earnings for the third quarter
were just as strong as in the previous quarters in 2011. This was
achieved despite periodic maintenance and market-related shutdowns. So
the weaker market situation during the quarter was not reflected in the
figures. In the packaging paper segments, we maintained the price level
in local currency, but in the latter part of the third quarter we felt
some price pressure from the market.

Our work to strengthen Billerud's brand as “The Natural Part in Smarter
Packaging” was launched when Billerud opened NASDAQ OMX in New York on
26 September. This clarifies our position as a more customer- and
solutions-oriented company and we offer packaging manufacturers and
brand owners clear added value with brand-strengthening,
productivity-boosting and environment-enhancing packaging solutions.

During the quarter we also earned recognition in the form of the
packaging world's finest design award, Pentawards Best of the Show,
which went to NINE, Billerud's innovation and design agency, as well as
Design Challenge 2011 at the largest packaging fair in the Nordic region
which was won by Chesapeake's new Impressions™ packaging range based on
Billerud FibreForm®.

Even though the current market situation is uncertain, I view the future
with great confidence. We feel well equipped to deal with the challenges
and opportunities that lie ahead.”

Solna, 28 October 2011
Billerud AB (publ)

Per Lindberg
President and CEO

For further information please contact:
Per Lindberg, President and CEO, +46 8 553 335 01 or +46 70 248 15 17
Susanne Lithander, CFO, +46 8 553 335 07 or +46 73 037 08 74

The information is such that Billerud is obligated to publish under the
Swedish Securities Market Act. Submitted for publication at 07.47 CET on
28 October 2011.