January–September 2017 (1–9/2016)
• Sales were EUR 1,397.3 million (1,298.5).
• Comparable operating result was EUR 139.1 million (104.7), or 10.0 per cent (8.1) of sales. The operating result was EUR 152.7 million (93.8).
• Comparable earnings per share were EUR 0.27 (0.21), and earnings per share were EUR 0.30 (0.18).
• Comparable return on capital employed was 10.6 per cent (8.3).
July–September 2017 (4–6/2017)
• Sales were EUR 478.6 million (474.2).
• Comparable operating result was EUR 50.4 million (43.5), or 10.5 per cent (9.2) of sales. The operating result was EUR 60.6 million (46.9).
• Comparable earnings per share were EUR 0.08 (0.09), and earnings per share were EUR 0.11 (0.09).
• Comparable return on capital employed was 11.5 per cent (10.3).
Events in July–September 2017
• Demand for packaging materials made from fresh fibre was at a good level in Metsä Board’s main market areas.
• Market prices in local currencies remained stable or rose slightly. Metsä Board announced an increase in the price of white fresh fibre linerboard in Europe of EUR 50 per tonne (as of 15 September 2017) and in the price of folding boxboard of EUR 90 per tonne (as of 1 November 2017).
• Metsä Board’s paperboard deliveries remained roughly at the level of the previous quarter. Geographic sales mix improved the average price of folding boxboard.
• Net cash flow from operations was strong at EUR 67.5 million (4–6/2017: 37.1).
• Metsä Fibre’s new bioproduct mill started up according to plan in August.
• Metsä Board issued an unsecured bond of EUR 250 million maturing in 2027.
Events after the review period
Metsä Board was once again recognized as a global leader in terms of its responsible water consumption and measures to mitigate the effects of climate change. The company was included on CDP’s Water A and Climate A lists, and achieved Leadership status in CDP’s Forest programme.
Result guidance for October–December 2017
Mainly due to the maintenance shutdown at the Husum integrated mill, Metsä Board’s comparable operating result in the fourth quarter of 2017 is expected to weaken slightly from the third quarter of 2017.
Metsä Board’s CEO Mika Joukio: “Third quarter developed according to our expectations. Paperboard delivery volumes remained roughly at the level of the previous quarter, but our comparable operating result improved by 16 per cent. The result improved due to an increase in average paperboard prices as well as the higher production volumes of pulp and paperboard. Cash flow from operations was strong due to the improved result and release in working capital. Our associated company Metsä Fibre’s new bioproduct mill at Äänekoski started up according to plan in August, and pulp deliveries to customers started at the beginning of September.
Demand for packaging materials made from fresh fibre has remained strong, and market prices in local currencies have increased, particularly in white fresh fibre linerboard. The growth in demand has also been visible in the order books of our paperboard mills, which are now clearly higher than before.
The annual maintenance shutdown at the Husum integrated mill after the review period resulted in losses, particularly in the production and sales of pulp. The total delivery volumes of paperboard will also decline slightly for seasonal reasons towards the end of the year. Due to these reasons, we expect the fourth quarter results to weaken slightly.
We aim to further improve the average price of folding boxboard, production efficiency and profitability at the Husum mill. We estimate that the 2019 operating result of the Husum mill will be EUR 100 million better than in 2016.
Metsä Board’s strategy is clear: we focus on high-quality, light and ecological fresh fibre paperboards in growing markets. We develop our products and services in cooperation with our customers to gain an even stronger market position. Thanks to our skilled and competent personnel, I am confident about the company’s development.”
more detail at: https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=808076&lang=en