January–September 2017 (1–9/2016)
• Sales were EUR 3,712 million (3,483).
• Operating result was EUR 397 million (333). Comparable operating result was EUR 381 million (332).
• Result before tax was EUR 345 million (275). Comparable result before tax was EUR 330 million (275).
• Comparable return on capital employed was 11.2 per cent (10.5). Comparable return on capital employed excluding investments related to the bioproduct mill was 14.0 per cent (11.9).
• Cash flow from operations was EUR 611 million (298).
July–September 2017 (7–9/2016)
• Sales were EUR 1,260 million (1,143).
• Operating result was EUR 143 million (107). Comparable operating result was EUR 134 million (103).
• Result before tax was EUR 109 million (89). Comparable result before tax was EUR 100 million (85).
• Comparable return on capital employed was 10.8 per cent (9.8). Comparable return on capital employed excluding investments related to the bioproduct mill was 13.7 per cent (11.1).
• Cash flow from operations was EUR 420 million (177).
Events during the third quarter of 2017
• Metsä Fibre’s bioproduct mill in Äänekoski, Finland, started up according to the schedule in August.
• The currency-denominated market price of long-fibre pulp and the market price of short-fibre pulp increased by 4 per cent and 12 per cent, respectively, compared to the previous quarter.
• Demand for paperboards was at a good level.
• Metsä Forest began harvesting for the purposes of the bioproduct mill’s production. The purchasing of wood had already begun in 2016.
• Metsä Wood’s new Kerto® LVL line in Lohja, Finland, started up.
• The foundation stone of Metsä Wood’s new birch plywood mill was laid in Pärnu, Estonia.
• Metsä Wood announced its plan to construct a new Kerto® LVL line at its Punkaharju mill in Finland.
• Metsä Board issued an unsecured bond of EUR 250 million.
• Moody’s Investors Service upgraded Metsä Board’s credit rating from Ba2 to Ba1.
Result guidance for October–December 2017
Metsä Group’s comparable operating result in the fourth quarter of 2017 is expected to be to be roughly at the same level as in the third quarter of 2017.
President and CEO Kari Jordan: “Metsä Group’s profitability during the first three quarters in 2017 was better than in the previous year. In particular, the result improved by higher paperboard delivery volumes and rises in pulp prices.
We started the construction of the Äänekoski bioproduct mill in April 2015, and the mill started up in mid-August 2017 – exactly on schedule and within budget. We have shown that major projects can be implemented in Finland competitively and in line with the highest quality standards. The project was made possible by careful planning and highly committed employees, as well as open, constructive cooperation between the project parties. Since the start-up, the mill’s production has increased in line with the planned start-up curve.
The investment programme of the Wood Products Industry is also progressing according to plan. In August, we started up the new Kerto® LVL line at Lohja and laid the foundation stone of the new birch plywood mill under construction in Pärnu, Estonia. At the moment, we are converting the old paper machine hall in Äänekoski into a birch veneer mill. As a result of the strong demand for Kerto® LVL, we are also planning to expand production at the Punkaharju mill. The final investment decision will be made by the end of the year.
The global economic outlook is positive. We will continue to increase sales in our main markets. Finland’s increasingly better-growing forests act as significant carbon sinks. Following a vote of the Council of Europe in October on the LULUCF Regulation, our country may in the future incur notional emissions for the increasingly efficient use of our forest assets. Finland must continue its efforts to influence decisions to achieve a better outcome.”
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