Displaying items by tag: Interim Report

Metso’s President and CEO Jorma Eloranta comments: “In the first quarter most of our markets and customer industries continued to recover. It seems that the recovery is gaining momentum, and is today broader based than during the past six months. Our customers' higher capacity utilization rates have boosted the activity level of our services business and since our customers are regaining their confidence the demand for new capital equipment and project business has also improved. Price competition in the markets seems to be easing up as the trading environment is getting stronger.

The measures we have carried out in the past few years to develop our operating models and to adjust our cost structures have supported our first-quarter profitability although net sales were still relatively low following modest order intake levels in 2009. Assuming that we continue to win new, profitable orders, net sales for the coming quarters should also be picking up. The first quarter confirmed that due to our decisive and quick response to the market turmoil in the second half of 2008 through 2009, Metso is today a more competitive company than before.

We have gradually started ramping up the engineering and manufacturing capacity to match the improved demand but there seems to be some slowness in our component supplier and subcontractor base to ramp up their capacity. Likewise we are also continuing to further develop our services business and global presence as well as our solutions based on environmental business.

Based on the recovery in order intake during the past 6 months and the current market outlook we are somewhat raising our net sales guidance for 2010. We estimate that our net sales will be over EUR 5 billion. We expect our 2010 profitability to be satisfactory.“

Short-term outlook
Global economic recovery is strengthening and there are positive signs in demand in most of our customer industries. The improving capacity utilization rates are supporting our services business and most of our customers are gradually regaining their confidence to increase the level of their investments.

The number of quotations for equipment and projects from mining companies has clearly increased. This has already had a positive impact on our orders and we expect this to continue during the rest of 2010, contributing to an overall satisfactory trading environment. Due to the strengthening demand and price level for minerals as well as our large installed equipment base, we expect demand for our mining services to continue to improve.

We anticipate that demand for equipment used in aggregates production by the construction industry will be satisfactory in Europe and weak in North America during the year. In the Asia-Pacific region and Brazil, infrastructure construction projects are maintaining good demand thanks to economic growth and stimulus packages. We estimate that demand for our services business for the construction industry will remain satisfactory.

Demand for power plants that utilize renewable energy sources is expected to be good in Europe and North America in 2010. Several countries have published targets to increase the use of renewable energy and this is expected to support demand for our power plant solutions fuelled by biomass and waste. Demand for the power plant services business is expected to be satisfactory.

We estimate that demand for our automation products will be satisfactory during this year, as the oil, gas and petrochemical industries increase their investments due to the improvement in energy prices and demand. Demand for our services business for automation is expected to be satisfactory.

We expect the demand for metal recycling equipments to improve due to the increasing production volumes of steel, resulting from the strengthening of the global economy. The demand for solid-waste recycling equipment is estimated to be satisfactory. Demand for recycling equipment services is expected to improve in 2010 as the capacity utilization rates of our customers’ plants and equipment improve.

We estimate that demand for new fiber lines will recover to a satisfactory level, and demand for rebuilds and services will strengthen during the year. Demand for paper, board and tissue lines is expected to be satisfactory. We expect the capacity utilization rates of the paper and board industry to improve during the year, which should increase the demand for our services business.

We estimate that our net sales in 2010 will exceed the EUR 5 billion level of 2009, and that our profitability will be satisfactory. Our estimate is based on our order backlog, which contains about EUR 2.6 billion worth of deliveries for 2010, and on the expectation that the recovery of the global economy will continue.

The net sales and profitability estimates are based on Metso’s current market outlook and business scope as well as foreign exchange rates similar to the first quarter.

Previous guidance (from Financial Statements Review 2009, published on February 8, 2010):
“We estimate our net sales in 2010 to remain at about the same EUR 5 billion level as in 2009, and profitability to remain satisfactory. Our estimate is based on our order backlog, which contains about EUR 2.7 billion worth of deliveries for 2010, and on the expectation of continued gradual recovery of global economy. The net sales and profitability estimates are based on Metso’s current market outlook and business scope.”

Metso’s financial reporting in 2010

The Interim Review for January–June 2010 will be published on July 29, and the Interim Review for January–September 2010 on October 28.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 27,000 employees in more than 50 countries.

For further information, please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 204 84 3000
Olli Vaartimo, Executive Vice President and CFO, Metso Corporation, tel. +358 204 84 3010
Johanna Henttonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253

(UPM, Helsinki, 28 April 2010 at 09:40) – Interim Report for January–March 2010:

• Operating profit excluding special items was EUR 116 million (loss of EUR 78 million)
• Operating cash flow was EUR 209 million (EUR 274 million)
• Positive development in delivery volumes in all businesses – sales grew by 10%

Jussi Pesonen, UPM’s President and CEO, comments on the result of the first quarter of 2010:

"UPM's operating profit improved clearly from the same period last year due to higher delivery volumes across all of our businesses and lower raw material costs. The Uruguayan operations were for the first time reported for a full quarter and contributed positively to the result.

Our first quarter sales increased by 10% from the same period last year. What is especially positive is that despite the clear increase of delivery volumes our fixed costs remained the same. However, our profitability continues to be unsatisfactory and everyday efforts to improve the situation will continue.

In Paper, delivery volumes improved especially in Asia and North America. The Paper business made an operating loss with average paper prices decreasing and fibre costs increasing from the same period last year. However, we succeeded in increasing the prices of fine and speciality papers due to good demand.

The results of Energy and Pulp business areas improved as we were able to take advantage of the good market situation. Also Label business continued the positive development which started last summer.

The Finnish stevedores' strike in March impacted all of our businesses negatively. The estimated direct impact of the strike totals about EUR 20 million affecting the first and second quarters of the year. The strike also had significant indirect impacts and we lost orders.

The volatility of the fibre markets raises concerns. The Finnish wood market was inactive at the beginning of the year. If the situation continues, it will first affect our Timber and Plywood businesses.

The recovery of advertising in print media is slow. Increased investment activity has not yet started to fully impact our businesses. However, paper demand in Europe is forecast to recover from 2009 and our paper deliveries are expected to be higher than last year. A similar development is taking place also in our other businesses.

We seem to have passed the bottom of demand and price cycle in our businesses. Therefore we expect the operating profit for 2010 to improve clearly from last year. However, variable costs are expected to increase by about 2% from last year", says Pesonen.

For more information please contact:
Mr Jussi Pesonen, President and CEO, UPM, tel. +358 204 15 0001
Mr Jyrki Salo, Executive Vice President and CFO, UPM, tel. +358 204 15 0011

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
This email address is being protected from spambots. You need JavaScript enabled to view it.

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Conference call and press conference

UPM's President and CEO Jussi Pesonen will present the Interim Report for January–March 2010 in a conference call and webcast for analysts and investors, held in English, on 28 April at 13:00 Finnish time (11:00 London time, 06:00 EST).

Jussi Pesonen will also present the Interim Report for January–March 2010 in a press conference held in Finnish at UPM Group Head Office in Helsinki (main entrance, Eteläesplanadi 2) on 28 April 2010, at 14:15 Finnish time (12:15 London time, 07:15 EST).

Conference call and webcast details:

You can participate in the conference call either by dialling a number in the list below or following the webcast online at www.upm.com. Only participants who wish to ask questions in the conference call need to dial in. All participants can view the webcast presentation online.

We recommend that participants start dialling in 5–10 minutes beforehand to ensure the conference starts on time.

Conference call title: UPM-Kymmene Corporation Interim Report January-March 2010
Conference ID: 863677

Phone numbers:
US: +1 334 323 6203
Australia: +61 (0)28 2239 540
Hong Kong: +852 300 278 23
India Free: 000 8001 0036 74
Singapore: +65 6823 2171
Austria: +43 (0)268 2205 6293
Belgium: +32 (0)2 290 14 11
Czech Rep. :+420 (2)3900 0636
Denmark: +45 3271 4611
UK: +44 (0)207 1620 177
France: +33 (0)1 7099 3212
Germany: +49 (0)695 8999 0509
Hungary: +36 (0)618 8932 17
Ireland: +353 (0)1 4364 108
Italy: +39 023 0350 9005
Luxembourg: +352 2700 0734 18
Netherlands: +31 (0)20 7965 012
Norway: +47 (0)2 156 31 22
Spain: +34 917 889 897
Sweden: +46 (0)8 5052 0114
CH (GE): +41 (0)2 2592 7011
CH (ZH): +41 (0)434 5692 63

The webcast can be replayed at www.upm.com for 12 months.

***
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by ‘believes’, ‘expects’, ‘anticipates’, ‘foresees’ or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein including the availability and cost of production inputs, continued success of product development, acceptance of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group’s patents and other intellectual property rights, and the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group’s products and the pricing pressures thereto, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group’s principal geographic markets or fluctuations in exchange and interest rates.

ROTTNEROS: THE ROTTNEROS GROUP INTERIM REPORT JANUARY–MARCH 2010

• The result after net financial items for the first quarter of 2010 amounted to SEK 11 (-115) million. The operating result for the first quarter amounted to SEK 7 ( 110) million.

• The high price of electricity had a strong impact during the first few months of the year. Besides increasing the cost of electricity, the high price of energy also resulted in production stoppages with ensuing stoppage costs. Problems in the Swedish energy market had a negative impact on the overall result by approximately SEK 30 million.

• The cash flow from operating activities amounted to SEK 69 (29) million in the first quarter of 2010.

• On 22 January, Kjell Ormegard was appointed Chair of the Board up to and including the AGM in April 2010.

• In February, the Board of Rottneros approved an investment of SEK 45 million in a soda boiler at Vallvik Mill. This investment is a second step in the environmental and energy improvement measures being taken at Vallvik Mill.

• In February, Rottneros concluded an agreement with the Swiss packaging company SIG Combibloc regarding the transfer of intangible assets, primarily in the form of patents and patent applications, from Rottneros' subsidiary Rottneros Packaging AB. Rottneros Packaging's operation relating to food trays under the SilviPak brand does not form part of this agreement.

• As at 31 March 2010, an interest-bearing net receivable of SEK 54 million was reported compared with SEK 10 million at the beginning of the year.

• The pulp market remains strong, with a high level of demand. Global pulp stocks have remained at low levels. Further price increases have been announced for April and May 2010.

• The company is not providing a forecast for the full year 2010.

Rottneros in brief

Rottneros, a company that was originally established in the 1600s, is an independent and flexible supplier of customised paper pulp of high quality. Rottneros has been able to adapt in order to meet high customer expectations by continually developing its products and maintaining high levels of delivery reliability, technical support and service.

Rottneros has an annual production capacity of almost 400,000 tonnes of pulp at two mills in Sweden. Increasingly intensive product development in line with the requirements of customers will result in profitability that is higher and more stable throughout the business cycle.

SIGNIFICANT EVENTS

New Chair of the Board
On 22 January 2010, the Board of Rottneros AB appointed board member Kjell Ormegard to chair the Board of Rottneros up to and including the AGM in April 2010. This change was brought about by former chair Rune Ingvarsson asking to resign from the Board of Rottneros with immediate effect for personal reasons.

Rottneros investing in Vallvik
On 2 February 2010, the Board of Rottneros approved an investment of SEK 45 million in the soda boiler at Vallvik Mill. This investment is a second step in the environmental and energy improvement measures that were previously communicated. Improving the soda boiler will in turn increase its incineration capacity, which will increase Vallvik's production of bioenergy. Installation is scheduled for the fourth quarter of 2010 in conjunction with the annual maintenance shutdown.

Transfer agreement concluded
In February 2010, Rottneros concluded an agreement with the Swiss packaging company SIG Combibloc regarding the transfer of intangible assets, primarily in the form of patents and patent applications, from Rottneros' subsidiary Rottneros Packaging AB. Rottneros Packaging's operation relating to food trays under the SilviPak brand does not form part of this agreement. The transaction will have a minor impact on Rottneros' income statement and a positive impact on the Group's cash flow.

New Chief Financial Officer
Tomas Hedström was appointed as CFO for Rottneros AB starting 1 May 2010. Tomas Hedström was most recently employed by the SCA Group, where he was in charge of the Group's accounting staff. Tomas Hedström will replace Karl Ove Grönqvist, who decided to leave Rottneros to take up another position as CFO.

THE PULP MARKET

Market and products
There has been a strong demand for all grades of pulp, and global pulp deliveries showed positive growth at the start of the year. The market has been characterised by a good balance, which has enabled pulp price increases. There have also been disruptions to the supply of pulp, mainly due to significant production capacity in Chile being shut down on account of the earthquake in February.

The USD pulp price rose at the beginning of the year. Further price increases were announced during the second quarter of 2010. Statistics for the total global market for bleached chemical market pulp showed that deliveries for the period January to February 2010 amounted to 6.4 (5.8) million tonnes, which was 10.3% higher than the same period in 2009. Ninety-one per cent (84% for the same period in 2009) of the global supply capacity for bleached chemical pulp was used for the period January to February. An estimated 93% (86%) of production capacity was utilised for the same period.

The average price of bleached long-fibre chemical pulp during the first quarter of 2010 amounted to USD 844 per tonne (USD 595 per tonne), an increase of 42%. The price of long-fibre chemical pulp (NBSK) at the end of March 2010 was USD 889, an increase of 11% from the beginning of the year when the price was USD 799.

The price of short-fibre chemical pulp increased from USD 700 at the beginning of the year to USD 789 at the end of March, an increase of 13%.

Global producer stocks of bleached chemical pulp amounted to 2.8 million tonnes in early 2010 and were estimated at 3.0 million tonnes at the end of February.

Long-fibre chemical pulp (NBSK) (produced in Vallvik)
The price was USD 799 per tonne at the beginning of the year and USD 889 at the end of March. The market for long-fibre chemical pulp is strong. The level of producer stocks of pulp remains low.

Delivery capacity utilisation for the period January to February 2010 was 93% (84% for the same period in 2009), and production capacity utilisation was around 96% (85%).

Mechanical pulp and CTMP (produced in Rottneros)
The price of short-fibre CTMP was around USD 600 per tonne in the Western European market at the start of the year. The price and demand for CTMP grew more slowly at the start of the year compared with chemical pulp. A recovery materialised toward the end of the first quarter and in April.

Delivery capacity utilisation for the period January to February was 86% (74%) and production capacity utilisation was 97% (66%).

PRODUCTION AND DELIVERIES

The Group's pulp mills in Rottneros and Vallvik have a combined production capacity of almost 400,000 tonnes per year. In 2009, a production level of 335,900 tonnes was achieved for the full year. Weak demand at the start of 2009 resulted in production restrictions of around 65,000 tonnes.

The level of production during the period January to March 2010 was lower than compared with the same period of the previous year and amounted to 81,400 (89,500) tonnes. The first quarter of 2009 included 11,100 tonnes that related to production at Rockhammar Mill, which has now been disposed of. The high price of electricity at the beginning of the year meant production disruptions and shutdowns corresponding to 6,000 tonnes at Rottneros Mill during the first quarter of 2010. During the first quarter of 2009, Group production was restricted by approximately 50,000 tonnes as a consequence of weak demand. Shutdowns for annual maintenance work will take place in the third quarter for Rottneros Mill and in the fourth quarter for Vallvik Mill. All costs relating to maintenance shutdowns are recognised in the period during which the shutdown takes place.

Deliveries during the first quarter of 2010 amounted to 87,300 (105,700) tonnes, corresponding to a reduction of 17%.

INVOICED SALES AND RESULTS

January to March 2010 compared with January to March 2009
The Group generated a net turnover of SEK 407 (433) million for the period January to March 2010.

The turnover for January to March 2010 was SEK 26 million less than for the corresponding period of the previous year. The main factors affecting turnover include: lower delivery levels, SEK 75 million; a weaker USD, SEK -69 million; higher pulp prices in USD, SEK 120 million; and other changes, SEK -2 million. The lower delivery levels are mainly the result of the sale of Rockhammar Mill and the closure of Rottneros Miranda in Spain.

The average price in USD of long-fibre sulphate pulp (NBSK) increased by 42% – from USD 595 to USD 844 – while the average price of NBSK pulp converted into SEK increased from SEK 4,997 to SEK 6,073 per tonne, an increase of 22%. The average price in USD of eucalyptus pulp (BEK) increased from USD 536 to USD 748 per tonne, or by 40%, while the corresponding average price converted into SEK rose from SEK 4,506 to SEK 5,380 per tonne, an increase of 19%.

As a result of the high price of electricity during the quarter, Rottneros Mill periodically stopped production, which had a strong negative impact on the results. The problems associated with the Swedish electricity market, including sharp increases in energy costs resulting in production stoppages, negatively affected the quarterly earnings by approximately SEK 30 million. The price of pulp in USD showed an increasing trend during the entire first quarter and further price increases have been announced. The stronger market and improved prices have created the necessary preconditions for profitability at the Group's pulp mills.

The average price of electricity on the Nord Pool exchange amounted to SEK 0.73 per kWh for the period January to March 2010, compared to SEK 0.42 per kWh for the same period of 2009. There is some uncertainty about the price trend for electricity. Electricity on Nord Pool will be traded at the current rate of SEK 0.40-0.45 per kWh for the remainder of 2010. For 2011 and beyond, electricity will be traded on Nord Pool at around SEK 0.40 - 0.41 per kWh.

The wood supply was reliable during the period. The cost of pulpwood increased during the first quarter of 2010 and a price increase of SEK 30 per m3 was announced with effect from 1 April. The Group's operating result for the period January to March 2010 amounted to SEK 7 (-110) million.

Hedging activities realised during the first quarter of 2010 resulted in a gain of SEK 3 (3) million.

The Group's result after net financial items amounted to SEK 11 ( 115) million, including net financial items totalling SEK 4 (5) million. Net financial items include financial exchange gains of SEK 6 (8) million. These amounts were largely countered by operating exchange losses on accounts receivable. Profit/loss after tax was SEK 11 (-115) million. Earnings per share after tax amounted to SEK 0.01 (-0.64). Cash flow per share was SEK 0.03 (0.09).

(For full report, including tables, see attached file)

Södra's interim report for the January-March 2010 period

- The group reported an operating profit of SEK 371 (-52) million for the first three months of the year.

- Profit after net financial items amounted to SEK 382 (-59) million .

- Net sales increased to SEK 4,575 (3,773) million.

- Return on capital employed was 15 percent (neg).

- Profits in all business areas increased compared with the same period last year.

- Increases in the price of pulp and sawn timber products boosted figures.

- The drastic increase in sales of interior products stemmed from the effects of last year's acquisitions.

- Growth in the biofuel business boosted the profits of the forestry business.

- Real productivity grew by 2.1 percent.

The Group Chief Executive's comments

"2010 began with a continued recovery after a year suffering the adverse effects of the recession. Profits were boosted by increased deliveries and higher prices in the pulp and sawn timber products areas."

"In the course of a single year we have gone from the shadow of the recession and the dramatic events it entailed to a position where all our business areas comply with or almost comply with return requirements."

"Although we are not exactly in a boom, we have moved from recession to prosperity."

"Thus together we have navigated from extreme market conditions, which were at their most critical stage this time last year, to the situation today, one of recovery. Inhouse, we continue to focus on those things we can influence: customer care and productivity. It is a matter of some satisfaction to see that real productivity during the period increased by 2.1 percent year on year."

"Staff continue to be deeply involved in the development of new ideas. During the period, we implemented 743 improvement suggestions from Södra employees, which overall corresponded to a SEK 31.1 million improvement in annual profit."

Business areas

Pulp -Södra Cell
Net sales improved by 19 percent compared with the same period last year to SEK 2,615 (2,199) million. Operating profit amounted to SEK 322 (-24) million. Return on operating capital was 18 percent (neg).

The period was characterised by relatively low stock levels and high deliveries. Production increased compared with the same period last year, which was influenced by market-related stoppages at the Norwegian pulp mills. The market also strengthened as a result of the earthquakes in Chile, which reduced pulp supplies.



Sawn timber products - Södra Timber
Net sales improved by 40 percent compared with the same period last year to SEK 956 (684) million. Operating profit amounted to SEK 61 (3) million. Return on operating capital was 10 percent (1).

The long cold winter restrained demand for and also the production of sawn timber products. Price levels have recovered compared with the rock bottom levels prevailing during the recession at this stage last year. There is good demand in Sweden, North Africa and the Middle East. The US market has now stabilised at a low level. Price levels in China have almost doubled in a single year, and are starting to attract the interest of European producers.

Interior products - Södra Interiör
Net sales improved by 46 percent compared with the same period last year to SEK 301 (206) million. Operating profit amounted to SEK 3 (2) million. Return on operating capital was 3 percent (2).

The impact of acquisitions boosted sales and strengthened the position of all Södra Interiör's markets. The Swedish building and construction trade has been thriving despite a long and cold winter. The repairs and extension tax allowance (ROT-avdrag) has had a positive impact on sales. While sales in Sweden and Norway have thrived, sales in Denmark, where the building sector and the building trade are in a period of stagnation, have been considerably poorer.

Södra Skog
Net sales improved by 1 percent compared with the same period last year to SEK 2,325 (2,302) million. Operating profit amounted to SEK 19 (5) million. Return on operating capital was 7 percent (1).

The pulp wood market in Södra's district has been relatively calm, but with a decrease in the availability of deciduous pulp wood. The supply of standing forest timber and timber for delivery has decreased at the beginning of 2010, and there is still intense competition for clear cutting sites. Improved price levels and volumes are boosting Södra Skogsenergi profits.

For further information please do not hesitate to get in touch with:
Leif Brodén, CEO and Group Chief Executive
+46 470 894 35

Mikael Staffas, CFO
+46 470 892 20

Per Braconier, Director of Communications
+46 70 534 5166

Billerud has changed reporting date for the Interim Report January-September, 2010. The new reporting date is 29 October, 2010.

For further information please contact:
Bertil Carlsén, CFO, +46 8 553 335 07, +46 73 021 10 92
Sophie Arnius, Investor Relations Manager, +46 8 553 335 24, +46 70 590 80 72

The information is such that Billerud is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 10.30 a.m. on 14 April 2010.

Billerud's business concept is to offer demanding customers packaging materials and solutions that promote and protect their products - packaging that is attractive, strong and based on renewable materials. Billerud has a world-leading position within several product segments including paper for consumer packaging and industrial applications. Production takes place at three integrated pulp and paper mills in Sweden and at one paper mill in the UK.