Intertape Polymer Group Inc. announced an agreement to acquire a majority stake in Capstone Polyweave Private Limited (d/b/a “Capstone”), a newly-formed enterprise in India, which is expected to lead to a greenfield investment by Capstone. The principal purpose of the Capstone partnership will be to provide IPG with a globally-competitive supply of certain woven products in order to better service and grow IPG’s woven products business. IPG will be partnering with the current shareholders of Capstone, who are also the shareholders and operators of Airtrax Polymers Private Limited (d/b/a “Airtrax”). Airtrax manufactures and sells woven products that are used in various applications, including in the building and construction industry. All amounts in this press release are denominated in US dollars unless otherwise indicated. Click Read More below for additional detail.
Third Quarter Highlights
- Sales amounted to EUR 440.0 million (422.9).
- Comparable operating result was EUR 34.0 million (35.8), or 7.7 per cent (8.5) of sales. Operating result was EUR 26.6 million (34.5).
- Comparable result before taxes was EUR 27.1 million (26.8). Result before taxes was EUR 19.8 million (25.5).
- Comparable earnings per share were EUR 0.07 (0.07), and earnings per share were EUR 0.05 (0.06).
Third Quarter Events
- The production volumes of Husum’s new folding boxboard machine grew steadily.
- Metsä Board’s production of uncoated fine paper ended in July.
- The wallpaper base machine PM3 at the Kyro mill was closed down in September.
Events After the Review Period
Metsä Board was identified as a global leader for its actions and strategies in response to climate change. CDP (formerly Carbon Disclosure Project) awarded Metsä Board a position on the Climate A List. Metsä Board was among the 9% of corporations participating in programme to be awarded a position on the list.
Mika Joukio, CEO:
“Comparable operating result for the third quarter remained on the same level as in the previous quarter, as we expected. Our result continued to be burdened by the lower price level of the start-up volumes of Husum’s new folding boxboard. In addition, a leak in the pulp mill’s recovery boiler and the production-related challenges of the new folding boxboard machine in the second quarter slowed down our customer deliveries especially to North America.
The production and delivery volumes of Husum’s new folding boxboard have increased steadily since the summer, and the average price of the order inflow is already at a good level. Due to the long lead time, the profit impact of the improved average price will nevertheless be visible with a delay of approximately three months. The profit development of our Finnish mills was positive. The decrease in working capital turned our cash flow from operations clearly positive.
During the review period, we produced our last fine paper reels and announced to discontinue the loss-making wallpaper business. In the future, we will focus on premium fresh fibre paperboard used in consumer goods and retail-ready packaging, in line with our strategy.
After the review period, we were identified by CDP as a global leader for our actions and strategies in response to climate change. The importance of responsibility and its assessment is gaining increased prominence in our customer relationships, and improves our competitiveness. I am also very proud of the recognition our premium products received at the Pro Carton ECMA Awards, in which Metsä Board’s fresh fibre paperboard was used in three prize-winning paperboard packages.
Metsä Board’s future looks bright. Husum’s new folding boxboard machine’s capacity is approaching the targeted nominal capacity, which enables us to better meet increasing demand in our main market areas. Next year, we will also have our own extrusion coating line, which will expand the range of paperboard suitable for food and food service packaging. We can look forward to a busy year in 2017, but we have every chance of achieving our long-term growth and profitability targets.”