Norske Skog has decided to extend the consent solicitation deadline for the ongoing recapitalization proposal from 3 October until Thursday 5 October at 17:00 CET. Norske Skog will use the period up to the new expiration deadline to speed up the continued discussions with the various stakeholder groups to try to achieve sufficient support for a consensual recapitalization solution for the Norske Skog group. The Board of Directors will continue to follow and evaluate the situation thoroughly during this period. We need some extra time to align initiatives among the various stakeholders. We believe that the extension of the consent deadline will improve the chances of reaching a solution," said Mr. Christen Sveaas, Chairman of Norske Skogindustrier ASA.
All-time high quarterly operating profit combined with solid sales growth
- Net sales EUR 273.2 million (EUR 266.9 million).At constant currency rates, growth was 3.7%.
- Adjusted EBITDA EUR 39.5 million (EUR 25.5 million), representing 14.4% (9.5%) of net sales
- Operating profit EUR 28.9 million (EUR 9.9 million)
- Adjusted operating profit EUR 26.7 million (EUR 11.2 million), representing 9.8% (4.2%) of net sales, and the 12th consecutive quarter of year-on-year improvement
- Profit before taxes EUR 25.1 million (EUR 8.5 million. The comparison figure includes a capital gain of EUR 3.2 million from share sales.)
- Earnings per share EUR 0.35 (EUR 0.06)
Net cash flow from operating activities EUR 35.6 million (EUR 24.2 million)
Marco Levi, President & CEO
“July-September 2016 was an excellent quarter for us, with very strong performance from our organization. We achieved 3.7% sales growth at constant currency rates and profitability reached yet another record in the current structure of the company. This was also the 12th consecutive improvement in quarterly operating profit. Our hard work towards enhancing operational efficiency and achieving a more competitive cost structure is clearly paying off and we continued to benefit from lower variable costs during the quarter.
I am pleased that we have been able to grow our net sales for the past two quarters on a comparable basis. This is particularly true for glassfiber, wallcover, filtration, and tape products, as well as single-serve coffee materials, where we achieved a breakthrough in the North American market during the reporting period. All of our business units reported higher operating profits and most of them increased net sales. We have also announced a EUR 23 million investment into our engine and industrial filtration portfolio to show our commitment to growth and the further development of the company.
We will continue to execute our strategic agenda at full speed. The benefits are clearly visible when looking at higher margins through commercial excellence, our lean operating model, the increased capacity utilization at our recent investments and capitalizing on new growth opportunities. As a result, we have further accelerated our progress towards reaching our financial target of above 8% adjusted operating margin by 2018. Also, we are already well below our gearing target thanks to the very strong cash flow generation this year.”
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