Displaying items by tag: Mreal

M-real Corporation, part of Metsäliitto Group, announced on 9 December 2009 plans to improve Speciality Papers business area's profitability. The main measures were stated to be the planned closures of two speciality paper machines in Reflex mill and the streamlining of the organizations in both Gohrsmühle and Reflex mills.

Negotiations to implement the planned measures started in January 2010. Negotiations have now been finalised resulting in a reduction of 220 jobs at the Gohrsmühle and Reflex mills. This represents an about 20 percent reduction of the total workforce. The implementation of personnel reduction is ongoing and it will be finalised by the end of 2010.

Annual production capacity of the Reflex mill will reduce by approximately 80 000 tonnes. The production of carbonless base papers will move to Gohrsmühle mill and the converting as well as the finishing remains in the Reflex mill. The Reflex mill will continue the production of premium fine and digital imaging papers. Product offering and supply capability of M-real Zanders will remain unchanged.

In the future, the Reflex mill will be developed based on a paper park concept. The target is to find industrial partnerships with other producers and thus create new jobs at the mill site. In Gohrsmühle the share of speciality papers of the total product portfolio will continue to increase.

Speciality Papers business area's operating result in the second quarter of 2010 will due to the above mentioned measures include approximately EUR 16 million non-recurring cost provisions. The expected annual profit improvement of these measures is approximately EUR 18 million fully from 2011 onwards.

For further information, please contact: Matti Mörsky, CFO, tel. +358 10 465 4913 Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10 465 4335

M-real is to increase the prices for its one side coated label and flexible packaging papers produced at its Simpele mill in Finland and M-real Zanders Gohrsmühle mill in Germany. The price increase will be up to 6 per cent and is to come into effect for all deliveries from the 1 July 2010.

The increase is due to the escalation of costs in paper manufacturing and distribution.

For any further questions:

Heikki Husso
Senior Vice President, M-real Speciality Papers business area
Tel: +49 2202 15 2000
Fax: +49 2202 15 2874
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Result for the first quarter of 2010
Sales EUR 602 million (Q1/2009: 623)

Operating result excluding non-recurring items EUR 39 million (-65). Operating result including non-recurring items EUR 49 million (-118).

Result before taxes excluding non-recurring items EUR 15 million (-62). Result before taxes including non-recurring items EUR 25 million (-115).

Earnings per share from continuing operations excluding non-recurring items EUR 0.03 (-0.18) and including non-recurring items EUR 0.06 (-0.32).

Events during the first quarter
In January, M-real made a partial early redemption of its 2010 bonds (originally EUR 400 million) with a nominal value of EUR 250 million.

M-real booked a positive EUR 12 million non-recurring item related to IT.

M-real announced price increases in all its main products.

"M-real's result improved further during the first quarter and we achieved a clearly positive net result. However, M-real's structural change is not ready yet; we have several measures underway to improve profitability further. The demand has improved in all of M-real's main products. M-real will increase the prices of all main products to cover increasing fibre costs."
CEO Mikko Helander

Due to the significantly rising raw material costs during the last months, particularly pulp and logistic costs, M-real Zanders increases prices for carbonless papers for deliveries from 19 April 2010 up to 10 per cent.

For any further questions:

Heikki Husso, Senior Vice President, Speciality Papers
Tel: +49 2202 15 2000
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Helga Disimino, Vice President, Sales & Marketing Merchant Business, Speciality Papers
Tel: +49 2202 15 6300
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

M-real Corporation Stock Exchange Release 10 March 2010 at 9.30

M-real Corporation, a part of Metsäliitto Group, reverses earlier made IT cost provisions and books a positive non-recurring item of EUR 12 million in its 1Q 2010 operating result. In segment reporting EUR 9 million is included in Other operations and EUR 3 million in discontinued operations.

The reversal of the provisions relates to the new IT service contract with Tieto Corporation published on 3 December 2009 as well as to the renewed IT-contract with IBM signed today.

As earlier announced, the annual cost savings resulting from changes in IT services are expected to amount to approximately EUR 30 million.

M-REAL CORPORATION

Further information:
Matti Mörsky, CFO, tel. +358 10 465 4913