Interim report January-September 2010
Submitted for publication at 07.45 CET on 29 October 2010.
(Tables included in attached PDF)
January-September 2010 compared with the same period in 2009
- Net sales amounted to SEK 6 549 million (5 700), an increase of 15%.
- Profit for the period amounted to SEK 480 million (5).
- Earnings per share amounted to SEK 4.66 (0.07).
- Operating profit amounted to SEK 711 million (69), corresponding to a margin of 11% (1).
July-September 2010 compared with April-June 2010
- Net sales amounted to SEK 2 251 million (2 108), an increase of 7%.
- Operating profit amounted to SEK 276 million (201). The 37% increase is mainly attributable to improved prices as well as lower costs for periodic maintenance shutdowns. No periodic maintenance shutdowns are planned for the forth quarter.
- The strong order situation continued during the third quarter.
- After the end of the quarter, the anticipated compensation of SEK 77 million related to the strike during the second quarter was received from the Confederation of Swedish Enterprise.
Outlook for the full-year 2010
- The order situation remains good or very good within most of Billerud’s packaging paper areas, which should enable a continued positive development within Billerud’s segments for packaging paper and packaging paper solutions.
- Further price increases for some of Billerud’s packaging paper products have been announced for the fourth quarter.
- Lower market prices and a weaker USD will have a negative impact on the operating margin for the Market Pulp business area.
Comments by Billerud’s CEO Per Lindberg:
Strong development for Billerud’s packaging paper in terms of both earnings and new solutions
“We are very pleased with the results for the third quarter as well as the underlying earnings for all our business areas. The strong development for Billerud’s main area, packaging paper, led to an improvement in operating profit to SEK 276 million for the third quarter. This result corresponded to an operating margin of 12% compared with the 11% average over the last three quarters. This improvement is due to good demand and continued efforts to improve margins and value creating packaging paper solutions.
We have just launched our first product where we combine two renewable materials; paper and bioplastic. The result is an effective and climate-smart sack solution with a moisture barrier. We can see a number of opportunities ahead of us where our close dialogue with end customers, combined with our expertise within packaging paper and bioplastics, will lead to new packaging solutions with increased value creation for our customers. This applies in particular to customers who set a high value on packaging their products in climate-smart packaging made from renewable materials.
Following our receipt of the “Technology Innovation Award 2010” in China for our FibreForm® product in the previous quarter, the number of customer enquiries and development cooperations relating to FibreForm® has further increased. We feel strengthened by the fact that our long-term focus on development work close to the customer, and innovative product development, will give us future opportunities for a continued positive margin development within packaging paper.”
Billerud’s CEO Per Lindberg and CFO Bertil Carlsén will present the interim report at a press and analysts conference on Friday, 29 October at 13.30 CET.
Venue: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm.
For further information in connection with this report, please contact Per Lindberg, President and CEO, +46 702 481 517 and Bertil Carlsén, CFO, +46 730 211 092
This information is such that Billerud AB is required to disclose under the Securities Market Act. This report has been prepared in both a Swedish and an English version. In the event of variations between the two, the Swedish version shall take precedence. The report has not been reviewed by the company’s auditors.
Billerud is a packaging paper company. The business concept is to offer customers packaging material and solutions that promote and protect their products – packaging that is attractive, strong and made of renewable material. Billerud has a world-leading position within several product segments, both within paper for consumer packaging and for industrial applications. Production takes place at the Group’s three integrated pulp and paper mills in Sweden, and at a paper mill in the UK.