Second quarter 2012

• Net sales amounted to SEK 2 440 million, compared with SEK 2 291 million in the previous quarter.
• Operating profit amounted to SEK 161 million, an increase of SEK 19 million compared with the previous quarter. All three business areas reported higher operating profit than in the previous quarter.
• Results for the quarter were charged with acquisition-related non-recurring costs of SEK 38 million. Adjusted for these non-recurring costs, operating profit totalled SEK 199 million.
• The company completed its acquisition of UPM’s packaging paper operation in Pietarsaari and Tervasaari, Finland.
• It was announced that Billerud and Korsnäs were to combine. The new company, BillerudKorsnäs, will be a leading player in primary fibre-based packaging materials and packaging solutions, with annual sales of approximately SEK 20 billion.

January-June 2012 compared with the same period in 2011

• Net sales totalled SEK 4 731 million, down 4%.
• Operating profit was halved to SEK 303 million, mainly as a result of lower prices.
• The 2012 AGM approved the Board of Directors’ proposed dividend of SEK 3.50 (3.50) per share for 2011.

Outlook

• At the beginning of the third quarter 2012, the order situation in the packaging paper segments was on average normal and is anticipated to remain stable over the next quarter.
• It is expected that price rises in sack and kraft paper, announced in the second quarter 2012, will show through in the second half of 2012.
• Non-recurring transaction costs pertaining to the combination with Korsnäs are thought likely to total approximately SEK 50 million, the major part of which is expected to be charged to the quarter in which the combination will take place. Added to these costs, financing and integration costs of a non-recurring kind will be incurred after the transaction is completed.
• Wood prices are anticipated to be lower in 2012 than in 2011.

Comments by Billerud’s CEO Per Lindberg:
Historic first half-year
“The first half-year of 2012 will go to history as the period in which we successfully concluded negotiations on two major strategic acquisitions. In January, we acquired UPM’s packaging paper operation, with ownership being transferred in June on approval by the competition authorities. This generated sales of SEK 168 million and an operating profit of SEK 10 million in the second quarter. On 20 June, we announced the combination with Korsnäs. In the transaction, Billerud will acquire Korsnäs shares from the current holder, Kinnevik, in exchange for cash and shares in Billerud. The combination represents a natural progression in consolidating the successful businesses of Billerud and Korsnäs in packaging materials and packaging solutions, with the objective of creating a strong international player in the packaging industry. The deal is conditional on approval by the AGM and the competition authorities.

It is pleasing to note that Billerud’s three business areas are performing better than in the first quarter and that the operating margin for our packaging papers is higher than 10%. Overall, Billerud reports sales of SEK 2 440 million and an operating margin of 7%. Our price increases are not yet reflected in earnings. Their impact is only expected to emerge during the next half-year.

Through our acquisitions, Billerud will become an even stronger partner for our customers. We would like our customers to see our expansion and strengthened position as something greatly to be welcomed. Billerud’s focus going forward will be to integrate our acquisitions in such a way as to offer customers an extended product portfolio and improved service and to the shareholders deliver the increased return that they expect.”

Billerud’s President and CEO Per Lindberg and CFO Susanne Lithander will present the interim report at a press and analyst conference at 11.00 CET on Thursday, 19 July.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm.

Sonoco, one of the largest diversified global packaging companies, today reported financial results for its 2012 second quarter, ending July 1, 2012.

Second Quarter Highlights

• Second quarter 2012 GAAP earnings per diluted share were $.50, compared with $.52 in 2011.
• Second quarter 2012 GAAP results include after-tax charges of $.08 per diluted share, driven by previously announced restructuring activities.
• Base net income attributable to Sonoco (base earnings) for second quarter 2012 was $.58 per diluted share, compared with $.60 in 2011. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided second quarter base earnings guidance of $.55 to $.60 per diluted share.
• Second quarter 2012 net sales were a record $1.20 billion, up 7 percent, compared with $1.13 billion in 2011.

Earnings Guidance

• Third quarter 2012 base earnings are expected to be $.62 to $.66 per diluted share.
• Guidance for full-year 2012 base earnings is revised to $2.34 to $2.39 per diluted share.

Second Quarter Review

Commenting on the Company's second quarter results, Chairman and Chief Executive Officer Harris E. DeLoach Jr. said, "Sonoco's second quarter results met our expectations despite the continuing tough global economic conditions. Base earnings showed sequential improvement for the second consecutive quarter and gross profits increased 13 percent year over year while base earnings before interest and taxes (EBIT) improved by 6 percent. Base earnings were down year over year by a little less than 2 percent. The benefits to base earnings from significantly improved productivity, prior year acquisitions and a positive price/cost relationship were largely offset by lower volumes, a negative mix of business and higher pension, interest and income tax expenses. However, absent the impact of a stronger dollar, year-over-year base earnings would have been essentially unchanged.

"Our Consumer Packaging segment's second quarter operating profit improved 6 percent year over year, but was down 15 percent from the first quarter largely due to normal seasonality. The segment's year-over-year improvement was a result of productivity gains and a positive price/cost relationship, partially offset by lower volumes, negative mix and higher pension, labor and other expenses. Operating profits from our Packaging Services segment declined 54 percent from the second quarter of 2011, and 17 percent from the first quarter.

Year-over-year results were negatively impacted by the previously announced loss of a large contract packaging customer and a stronger dollar.

"In our Paper and Industrial Converted Products segment, second quarter operating profits were down 2 percent from last year's second quarter, but were up 23 percent from the first quarter. The year-over-year decline was driven by higher pension, labor and other expenses and a negative impact from exchange rates. These factors were partially offset by improved productivity, a positive price/cost relationship and slightly better volume, coming primarily from improved paper operations.

"Operating profits in our new Protective Packaging segment, created as a result of last year's acquisition of Tegrant Holding Corporation, improved 66 percent from the first quarter. Tegrant's operations comprise the majority of this segment and we are very pleased with the improvement we're seeing there in operating efficiencies and the progress being made in the integration. Year-over-year results in the legacy protective packaging operation improved slightly as a small decline in volume was more than offset by improved productivity."

GAAP net income attributable to Sonoco in the second quarter was $51.3 million, or $.50 per diluted share, compared with$53.4 million, or $.52 per diluted share, in 2011. Base earnings were $59.7 million, or $.58 per diluted share, in the second quarter, compared with $60.8 million, or $.60 per diluted share, in 2011. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges, acquisition expenses and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

Items excluded from base earnings in the second quarter of 2012 totaled $8.3 million, after tax, or $.08 per diluted share. This included restructuring expenses and asset impairment stemming from previously announced plant closures and manufacturing rationalization efforts in Germany, Canada and the United States. Excluded from base earnings in the second quarter of 2011 were after-tax restructuring and other charges totaling $7.4 million, or $.08 per diluted share, largely attributable to the disposition of the Company's Brazilian plastics operations and closure of a Canadian flexible packaging operation. Additional information about base earnings and base earnings per diluted share, along with a reconciliation to the most closely applicable GAAP financial measures, is provided later in this release.

Net sales for the second quarter were $1.20 billion, compared with $1.13 billion in the same period in 2011. This 7 percent increase was due to sales from acquisitions of $124 million, almost all of which is related to Tegrant, and higher selling prices, partially offset by lower volume/mix and a $41 million negative impact from foreign currency translation.

Gross profits were $217 million in the second quarter of 2012, compared with $191 million in the same period in 2011. Gross profit as a percent of sales was 18.0 percent, compared with 16.9 percent in the same period in 2011. The improvement in gross profits was due to productivity improvements and a positive price/cost relationship, partially offset by lower volumes, a negative shift in the mix of business and higher labor and other costs. The Company's selling, general and administrative (SG&A) expenses increased 19 percent year over year in the quarter, primarily due to added costs from the acquired Tegrant businesses. SG&A expenses were 9.9 percent of net sales in the 2012 period, compared with 8.8 percent in 2011.

Cash generated from operations in the second quarter was $42.9 million, compared with $45.9 million in the same period in 2011. Capital expenditures net of proceeds and cash dividends were $54.9 million and $30.2 million, respectively, during the second quarter of 2012, compared with $34.0 million and $28.9 million, respectively, during the same period in 2011.

Year-to-date Results

For the first six months of 2012, net sales increased 8 percent to $2.41 billion, compared with $2.25 billion in the first half of 2011. Net income attributable to Sonoco for the first six months of 2012 was $94.4 million, or $.92 per diluted share, compared with $110.8 million, or $1.08 per diluted share, in the first half of 2011. Earnings in the first half of 2012 were negatively impacted by after-tax restructuring and other charges of $19.1 million, or $.19 per diluted share, compared with $8.5 million, or$.09 per diluted share, in the same period in 2011.

Base earnings for the first half of 2012 were $113.5 million, compared with $119.3 million in the same period in 2011. This 5 percent year-over-year decline in base earnings stemmed from lower volume, a negative mix of business and higher pension, labor and other expenses. These negative factors were partially offset by productivity improvements, acquisitions and a positive price/cost relationship.

Gross profit increased 12.5 percent year over year to $433.4 million, compared with $385.3 million in 2011. Gross profit as a percent of sales increased in the first half of 2012 to 17.9 percent, compared to 17.2 percent in 2011.

For the first six months of 2012, cash generated from operations was $144.4 million, compared with $32.1 million in the same period in 2011. The first half cash flow reflects pension and postretirement benefit plan contributions of $58.9 million, compared with $110.5 million in the first half of 2011. Cash flow from operations also improved during the first half of 2012 due to less management incentives paid in comparison to last year. Capital expenditures and cash dividends were $102.0 millionand $59.3 million, respectively, during the first half of the year, compared with $70.5 million and $57.0 million, respectively, for the same period in 2011.

At the end of the first half of 2012, total debt was approximately $1.32 billion, a $32.0 million increase from the Company's year-end total debt of $1.29 billion. The Company's debt-to-total capital ratio was 47.4 percent, which is unchanged from year end 2011. Cash and cash equivalents as of the end of the first half of 2012 was $196 million, compared with $176 million at the end of the year.

Corporate

Net interest expense for the second quarter of 2012 increased to $15.3 million, compared with $8.2 million during the same period in 2011. The increase was due to higher debt levels as a result of the acquisition of Tegrant. The effective tax rate for the second quarter of 2012 was 35.3 percent, compared with 32.1 percent for the same period in 2011. The effective tax rate on base earnings was 32.8 percent and 31.9 percent in the second quarters of 2012 and 2011, respectively.

Third Quarter and Full-Year 2012 Outlook

Sonoco expects third quarter 2012 base earnings to be in the range of $.62 to $.66 per diluted share. Base earnings in the third quarter of 2011 were $.66 per diluted share. For the full-year 2012, base earnings are projected to be in the range of $2.34 to $2.39 per diluted share. The Company had previously provided full-year guidance of $2.34 to $2.44 per diluted share.

The Company's base earnings guidance assumes sales demand will remain near current levels, adjusted for seasonality. Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the global economy and fluctuating raw material prices and other costs, actual results could vary substantially.

Commenting on the Company's outlook, DeLoach said, "We expect third quarter base earnings to continue to improve sequentially and possibly could be near our results for the third quarter of 2011, which benefited from some lower incentives, taxes and other favorable actions. While we are encouraged by the progression of improvement in many of our businesses in the first half of the year, general economic conditions continue to be challenging and our customers' long-term order patterns remain difficult to predict. Accordingly, we are focused on implementing operating excellence initiatives to improve our manufacturing productivity and working to further reduce costs and control spending. Also, we expect to complete several important growth projects this year, including the third-quarter start-up of our new rigid plastics container plant in Columbus, Ohio. Finally, efforts to successfully integrate our Protective Packaging businesses continue and we expect to meet our objective of achieving annualized synergies of $12 million by year end."

SOURCE Sonoco

For the full release and tables please download vis the link below

Commercial Director Matthew North will deliver a deep insight into the strategy of the Bavarian viscose fibre manufacturer Kelheim Fibres at this year’s Man-Made Fibers Congress in Dornbirn. In his speech with the title “A Specialist Specialises” he will reveals the secrets of success of Kelheim Fibres, who - as a medium-sized enterprise – has gained an excellent position in an increasingly competitive global market.

For those who want to know more about the newest products of the speciality fibre producer three more presentations will deliver more specific information..

Dr. Ingo Bernt from Kelheim Fibres’ R&D team will speak about the design of viscose fibres specially for wetlaid nonwovens. As current research shows, short fibres with a flat cross section prove particularly beneficial for the strength of a nonwoven web. The latest fibre invention from Kelheim, Leonardo, combines both properties perfectly and beyond that also scores with its extra smooth surface and transparency.

Dr. Philipp Wimmer, another member of Kelheim’s R&D team, will present viscose speciality fibres for enhanced fluid management. In his lecture he will speak both about  speciality fibres with increased water absorbency and the completely new possibility to produce viscose fibres with reduced water absorbency or even water repellence.

Finally, Dr. Roland Scholz will present viscose fibres designed to improve dispersibility of wet wipes. The underlying research examined wet wipes for personal hygiene applications which frequently are flushed into toilets – and risk blocking the waste water system. In the course of the study important factors were discovered which facilitate the dispersibility of nonwovens based on 100% viscose fibres: In addition to water pressure in production and the properties of the nonwoven, the fibre geometry (titre, length and shape of cross-section) play a decisive role.

In addition to these lectures, Kelheim’s fibre experts are available for personal meetings at Kelheim Fibres’ information booth.

Kemira Oyj will publish its second quarter 2012 results on Thursday, July 26 around 8.30 am Finnish time (6.30 am UK time).

Kemira will arrange a press conference for analysts and the media starting at 10.00 am (8.00 am UK time) at Kemira House, Porkkalankatu 3, Helsinki. In the conference, Kemira's President and CEO Wolfgang Büchele and Chief Financial Officer Jyrki Mäki-Kala will present the results. The press conference will be held in English and will be webcasted at www.kemira.com. Presentation material will be available on Kemira's website at www.kemira.com under Investors in English and at www.kemira.fi in Finnish at about 10.00 am.

Conference call in connection to the press and analyst conference

You can also listen to the conference live over the phone and attend the Q&A session via a conference call. In order to participate in the call, please dial +44 (0)20 7162 0025, code 920266 ten minutes before the conference begins. A recording of the conference call will be available on Kemira's website later the same day.

• Profit after net financial items amounted to SEK 36 (37) million for the second quarter of 2012. Profit after net financial items amounted to SEK 32 (56) million for the first half of 2012.
• Cash flow from operating activities amounted to SEK 67 (55) million for the second quarter of 2012 and to SEK 35 (30) million for the first half of 2012.
• Over 20,000 tonnes of chemical sulphate pulp were produced at Vallvik Mill in June. This is the highest ever monthly production at the mill and well over the old record. A new daily record of 740 tonnes was also noted.
• In May 2012, the Board of Rottneros decided to enter into negotiations concerning the termination of continuous groundwood pulp production at Rottneros Mill. Negotiations have been concluded and approximately 50 employees at the mill were issued with notices of pending redundancy.

Metso and Wärtsilä have received the necessary regulatory approvals from the European Commission to close the initiated ownership changes of MW Power Oy. 

According to the agreement released May 31, 2012 Metso will acquire full ownership of MW Power. The transaction between Metso and Wärtsilä has been closed. The value of the agreement will not be disclosed.

MW Power supplies small- and medium-sized heat and power plants for European market, and focuses on renewable fuel solutions. Its main customers are municipalities, process industries and utilities. The company has a total of 250 employees in Finland, Scandinavia, the Baltic area and Russia.

The board of directors of Gardner Denver, Inc. has announced that Barry L. Pennypacker has resigned as president, chief executive officer and director. Michael M. Larsen, vice president and chief financial officer, has been named interim CEO, effective immediately. Diane Schumacher, who served in a variety of senior management and legal roles during her career with Cooper Industries, will continue to serve as board chairperson and will actively assist Mr. Larsen during the transition period.

Mr. Larsen oversees all company financial matters, including mergers and acquisitions, and will retain his CFO responsibilities during the interim period. Having served as vice president and chief financial officer since 2010, Mr. Larsen has played a key role in defining and driving Gardner Denver's growth strategy, focused on a transformation into a leading industrial company. Under Mr. Larsen's leadership as CFO, the company delivered record financial results in 2011. Gardner Denver expects second quarter 2012 results to be in line with previously stated guidance.

"We thank Barry for his service to the company and wish him well in his new endeavors," said Diane Schumacher. "Gardner Denver is a strong company and we have a strong transitional leadership plan, which includes the return of T. Duane Morgan to lead the Engineered Products Group. As we move forward, we are very pleased to have a leader with Michael M. Larsen's credentials as interim CEO."

"I am proud of the progress and results we achieved in my years with the company, which is well positioned for a strong future. Gardner Denver has a talented leadership team supported by a dedicated and customer-focused workforce. I wish them only the best," said Barry L. Pennypacker.

"It's an honor to be selected for this role and I accept with the clear goal of continuing to move the company forward by executing Gardner Denver's lean strategy for profitable growth," said Michael M. Larsen, interim chief executive officer and chief financial officer.

Prior to joining Gardner Denver, Mr. Larsen served as chief financial officer for General Electric Water & Process Technologies, a global organization with revenues of approximately $2 billion and 7,500 employees. His previous experience includes more than 15 years with General Electric Company, where he served in a variety of financial leadership roles in GE Plastics, GE Industrial, GE Energy Services and GE Power & Water. He joined GE's European Healthcare organization in Paris, France in 1995 and served on GE's Corporate Audit staff for six years.

The nominating and corporate governance committee of the board of directors will oversee the search for the next CEO.

The company plans to release second quarter results on Thursday, July 19, 2012 after the market close followed by a conference call on July 20, 2012 at 8:30 a.m. ET. Additional detail on the conference call can be found on the investors section of the company's website (www.GardnerDenver.com).

SOURCE: Gardner Denver, Inc.