Net sales are lower than the same period previous year. The decrease is due to the divestment of Latgran in the third quarter 2015.
Adjusted EBITDA is on the same level compared to the same quarter previous year.
Sales volumes are on the same level as Q3 last year.
Earnings per share for the quarter amounted to SEK 2.41 (3.49).
Costs for planned maintenance shutdowns in the production units in Karlsborg and Gävle amounted to SEK 194 million in line with the estimated SEK 195 million.
Production ran according to plan except for the recovery boiler in Frövi that experienced serious problems at the end of the quarter.
Demand and order situation for the fourth quarter is expected to be stable with normal seasonal variances for all business areas.
Average prices in local currency in the fourth quarter are anticipated to be unchanged in all segments except for brown sack where a slight increase is expected.
No changes to wood prices are expected for the fourth quarter.
The production unit in Frövi will have planned maintenance shutdown in the fourth quarter estimated to cost SEK 90 million.
The recovery boiler incident in Frövi will negatively impact growth for Consumer Board in quarter four.
Additional cost in Q4, up to SEK 100 million, for repair of the recovery boiler in Frövi.
Comments by BillerudKorsnäs’ CEO Per Lindberg: ”Once again we show a stable performance and I am happy to see that we deliver results as expected. Our production has stabilized and we have been producing in line with planned levels. The one issue for me is the lack of growth in Consumer Board. This is due to the production problems we suffered in previous quarters, but our view on the Consumer Board market has not changed and we expect to see the growth coming back as we catch up on inventory levels.”
Net sales and adjusted EBITDA in Q3 are on par with previous year’s performance and in line with our expectations which is very satisfactory. We are not satisfied with our current lack of growth in the Consumer Board segment, but we have put the production disturbances related to last year’s rebuilds behind us, and the anticipated improvements will come as we now are able to run our capacity on higher levels to match market demand and growth. Unfortunately, at the end of the quarter the recovery boiler in Frövi experienced serious problems and we were forced to stop it before our planned maintenance shutdown. We can run the board machine on lower capacity on external pulp but as a consequence we will see additional costs for pulp and the repair of the recovery boiler in the coming quarter beyond our previous estimates.
Overall the markets in all three business areas were stable and we anticipate that to continue.
The brown sack paper market improved compared to previous quarter. The market demand and local pricing for NBSK pulp also remained stable in the quarter.
Our view on the Consumer Board market continues to be very positive. Local pricing has been stable and we are not expecting any changes.
Within Business area Corrugated Solutions the demand for fluting has strengthened throughout the quarter and local pricing was unchanged. Managed Packaging sales have continued to deliver good progress.
more at: http://www.billerudkorsnas.com/Media/Press-releases/2016/INTERIM-REPORT-JanuarySeptember-2016/