Metsä Group’s comparable operating result in January–June 2020 was EUR 158 million

January–June 2020 (​​​​1–6/2019)
•Sales were EUR 2,453 million (2,809).
•Operating result was EUR 163 million (232). Comparable operating result was EUR 158 million (308).
•Result before taxes was EUR 139 million (202). The comparable result before taxes was EUR 134 million (279).
•Comparable return on capital employed was 6.2% (12.1).
•Cash flow from operations was EUR 240 million (183).

April–June 2020 (4–6/2019)
•Sales were EUR 1,200 million (1,372).
•Operating result was EUR 102 million (49). Comparable operating result was EUR 96 million (128).
•Result before taxes was EUR 93 million (36). The comparable result before taxes was EUR 86 million (115).
•Comparable return on capital employed was 7.6% (10.2).
•Cash flow from operations was EUR 190 million (142).

President and CEO Ilkka Hämälä: “As anticipated, Metsä Group’s result improved sequentially in the second quarter of 2020. In the first quarter, the lengthy strikes which impacted all of our business areas impaired our profit-making ability. During the second quarter, the COVID-19 epidemic developed into a pandemic, which affected demand for products in our business areas in very different ways.

Due to the exceptional situation, demand was higher than normal for Metsä Tissue’s tissue papers sold in the consumer market. Demand for Metsä Board’s paperboards increased particularly because of growth in food packaging. The situation for Metsä Fibre’s pulp business was unchanged, and prices remained low. The stronger demand for pulp mainly resulted from growth in global demand for tissue paper. Correspondingly, the decline in demand for printing papers by around 25% considerably weakened the pulp market. Concerning Metsä Fibre’s sawn timber and Metsä Wood’s plywood and LVL products, the closing of societies had an impact at the beginning of the quarter, with sales decreasing. However, the situation began to normalise towards the end of the quarter. Nevertheless, the price level of mechanical forest industry products remained low. Metsä Group’s pulp, paperboard and tissue paper businesses have been able to maintain full production rate. Production at our mechanical forest industry mills has been restricted primarily through holiday arrangements.
https://www.metsagroup.com/en/media/all-news/Pages/News.aspx?EncryptedId=936A70A9C1564FC6&Title=MetsaGroupscomparableoperatingresultinJanuaryJune2020wasEUR158million

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