Net sales in the third quarter of 2020 were $1.6 billion compared to $1.7 billion in the prior year as net sales declined $76 million attributed to the divestment of ANZ. After adjusting for the sale of ANZ, average selling prices improved nearly 1 percent and increased revenue $12 million. Shipments increased 1.7 percent in tons, or $24 million, while unfavorable foreign currency translation reduced net sales by $11 million. Segment operating profit1 was $204 million in the third quarter of 2020 compared to $206 million in the prior year. Higher shipments benefited segment operating profit by $10 million. Cost inflation, which was elevated due to foreign currency pressures, more than offset the benefit of higher selling prices by $4 million. Operating costs were $6 million higher than the prior year as improved operating performance and cost control efforts substantially offset the impact of lower production levels. Current year profits were unfavorably impacted by the net effect of favorable foreign currency translation and the sale of ANZ.
Metsä Board’s Kyro mill will be 150 years old this year, 2020. The wood grinding plant along the Kyröskoski rapids was started up in 1870. Since then, the Kyro mill has manufactured market wood pulp, groundwood, sawn timber, various papers and paperboard for international markets. Today, it is a modern and efficient mill that produces high-quality folding boxboard for Metsä Board, part of Metsä Group.
“Kyro people are proud of their mill. Our staff have always lived with changes and challenging times have been overcome by working together. People commit themselves to the mill for a long time, with families often having several generations involved. This has positively influenced the kind of mill Kyro is today,” says Petri Huiko, VP and mill manager of Metsä Board Kyro.
“Continued development is key to the success, efficiency and production quality of our paperboards and we are proud to continue to develop Kyro as generations before us have done,” added Petri.
Last year, Metsä Board Kyro began manufacturing a new plastic free eco-barrier board for food and food service packaging and introduced artificial intelligence (AI) to its quality control. In addition, the mill’s board machine finishing area is presently being modernised. The rebuild includes a new reeler, a winder and the renewal of the reel broke handling system. The investment value is EUR 20 million and the new machinery is scheduled to start during the autumn of 2021.