Metsä Board Corporation Financial Statements 1 January–31 December 2012, 7 February 2013 at 12:00 noon
Full year result for 2012
-Sales were EUR 2,108 million (Q1–Q4/2011: 2,485).
-The operating result excluding non-recurring items was EUR 74 million (59). The operating result including non-recurring items was EUR 220 million (-214).
-The result before taxes excluding non-recurring items was EUR 30 million (0). The result before taxes including non-recurring items was EUR 176 million (-281).
-Earnings per share excluding non-recurring items were EUR 0.13 (0.02) and including non-recurring items EUR 0.53 (-0.83).
-The Board of Directors proposes that a dividend of 0.06 euros per share be distributed for the financial year 2012.
Result for the fourth quarter of 2012
-Sales were EUR 509 million (Q3/2012: 532).
-The operating result excluding non-recurring items was EUR 25 million (25). The operating result including non-recurring items was EUR 41 million (22).
-The result before taxes excluding non-recurring items was EUR 12 million (10). The result before taxes including non-recurring items was EUR 27 million (8).
-Earnings per share excluding non-recurring items were EUR 0.08 (0.02) and including non-recurring items EUR 0.13 (0.02).
Events in the fourth quarter of 2012
-Delivery volumes decreased from the previous quarter mainly due to seasonal reasons.
-Average price of linerboard increased. Pulp price took an upward turn. The average prices of folding boxboard and papers declined slightly.
-The new biopower plant owned by Pohjolan Voima and Leppäkosken Sähkö was commissioned at Metsä Board Kyro mill.
Events after the period
The Alizay mill site in France, including machines, equipment and buildings, was sold to Conseil General de l’Eure for EUR 22 million.
“The operating result excluding non-recurring items in the last quarter of 2012 was at the third quarter level, as expected. Folding boxboard delivery volumes were at a normal level, although slightly lower than in the previous quarter due to seasonal effects. Demand for linerboard continued to be strong, and the price increase had a positive impact on the result in the last quarter of the year. The price of pulp also increased, and demand was good in the last quarter. Instead, demand for and price level of papers decreased in Europe, which weakened the profitability of our paper production.
The year 2012 was a significant milestone for our company. We successfully completed our strategic review, launched in 2006, which has resulted in the transformation of the company from a paper producer to the leading paperboard company. The measures to eliminate the last heavy losses of our paper operations were successfully completed. In the fall of 2012, we completed our EUR 120 million investment programme, related to which we increased our annual folding boxboard capacity by approximately 150,000 tonnes, modernized the Kemi linerboard mill, and increased the use of bioenergy in our production.
Our main targets for the year 2013 are the full utilisation of our expanded folding boxboard capacity, development and expansion of our current paperboard product portfolio and improvement of the profitability and cash flow of the paper and market pulp units”.
Mikko Helander, CEO
Near-term outlook
Folding boxboard delivery volumes in the last quarter of 2012 were at a normal level, although seasonally slightly lower than in the previous quarter. Folding boxboard order volumes are expected to gradually improve at the beginning of the year and delivery volumes to increase slightly in the first quarter of 2013, compared to the previous quarter. As a result of the completed annual folding boxboard contract negotiations the volumes are increasing in 2013 compared to 2012 and no material price changes are expected.
Demand for linerboard is expected to continue to be very strong, and delivery volumes are expected to increase slightly in the first quarter of 2013, compared to the previous quarter. No significant changes are expected in the price of linerboard in the coming months.
Delivery volumes of uncoated fine paper are expected to increase slightly in the first quarter of 2013, compared to the previous quarter, and delivery volumes of pulp are expected to be at the previous quarter level. No considerable changes are on the horizon in the price of uncoated fine paper. The currency-denominated price increase of long-fibre pulp is expected to continue at the beginning of the year.
The market situation of coated paper has weakened further since the year end, and delivery volumes and prices are expected to decrease slightly in the first quarter of 2013.
Production costs are expected to increase slightly in the first quarter of 2013, compared to the previous quarter, primarily due to increased energy costs.
Metsä Board’s operating result for the first quarter of 2013, excluding non-recurring items, is expected to improve slightly from the fourth quarter of 2012.
Disclosure procedure
Metsä Board Corporation follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its Financial Statements 2012 enclosed to this stock exchange release. Metsä Board's complete Financial Statements is attached to this release in pdf-format and is also available on the company's web site at www.metsaboard.com.