Holmen's Q4 net profit drops to 230M Swedish kronor from 902M kronor in year-ago period; Q4 net turnover down 7.9% year-over-year, to 3.94B kronor, amid continued weak demand for printing paper and sawn timber, but newsprint market balance is good

STOCKHOLM , February 13, 2014 (press release) – 2014-02-13

    Quarter   Full year
   SEKm 4-13 3-13 4-12 2013 2012
Net turnover 3 938 3 939 4 276 16 231 17 852
Operating profit excl. 
items affecting comp.*
338 326 271 1 209 1 713
Operating profit 338 326 78 1 069 1 520
Profit after tax 230 207 902 711 1 853
Earnings per share, SEK 2.7 2.5 10.7 8.5 22.1
Return on equity, % 4.5 4.1 17.7 3.4 9.3
* Items affecting comparability are impairment losses and restructuring costs at Holmen Paper (Q1 2013: SEKm -140, Q4 2012: SEKm -193).

  • Profit after tax for 2013 was SEK 711 million (2012: 1 853). Profit for the previous year was affected by a non-recurring income of SEK 911 million resulting from a reduction in corporate tax rate.
  • Earnings per share totalled SEK 8.5 (22.1). Return on equity was 3.4 per cent (9.3).
  • The Board proposes a dividend of SEK 9 (9) per share.
  • Operating profit excluding items affecting comparability totalled SEK 1 209 million (1 713). The decline was attributable to a stronger Swedish krona, lower selling prices for printing paper and production disruptions at Iggesund Paperboard.
  • Compared with the third quarter, operating profit rose by SEK 12 million to SEK 338 million. Implemented rationalisations have compensated for a loss in volume as a result of the shutdown of printing paper machines.
  • The market situation for paperboard was good. Demand for printing paper continued to decline but the market balance for newsprint is good as a result of shutdowns. Price increases were implemented at the turn of 2013/2014. The market for sawn timber remained weak.
  • Magnus Hall, Holmen President and CEO, has informed the Board of his wish to resign. Henrik Sjölund, currently CEO of Holmen Paper, has been appointed to be his successor. The change will take place in connection to the AGM April 8.

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