BillerudKorsnäs's Q4 operating profit jumps to 197M Swedish kronor from 25M kronor a year ago on 53.6% year-over-year hike in net sales, to 4.71B kronor; results were negatively affected by about 70M kronor due to unexpected production problems
February 18, 2014
– Fourth quarter 2013
Full year 2013 compared with the same period in 2012
Comments by BillerudKorsnäs’ CEO Per Lindberg:
Stable fourth quarter results impacted by production problems
“We have closed the books for the first successful year as the new company BillerudKorsnäs. It has been a year of change and I am very pleased to see that the integration is proceeding very well. The underlying performance in the fourth quarter was strong even if the production towards the end of the year suffered from some unexpected incidents. Our adjusted operating profit reached SEK 226 million corresponding to an adjusted operating margin of 5%. This includes some additional negative impact from the planned maintenance shutdowns and the previously announced costs for production problems of SEK 70 million.
During the quarter business has been relatively stable. We mostly saw stable demand, however with some typical year-end destocking. Prices were more or less stable as well. The start of 2014 has been quite good and we will run production on full capacity in the first quarter. The market will be more competitive and we are anticipating some pressure on prices in local currency for some of the products within business areas Containerboard and Packaging Paper beyond the first quarter.
We continue to realise synergies in a rapid pace, and we continue to expect to reach the target of SEK 530 million annual run-rate reduction during 2014. The integration efforts in 2014 are moving into the next phase when many new systems are implemented and new ways of working are introduced. Integration will therefore continue to be a high priority.
In November we had our first Capital Markets Day where we communicated how we are building a company to deliver value to customers and shareholders. It was well received and gave us further confidence to continue in building a value-creating world-class company for the long term.”
BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will present the year-end report at a press and analyst conference at 10.00 CET on Tuesday 18 February 2014.
Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm, Sweden.
For further information, please contact:
Per Lindberg, President and CEO +46 (0)8 553 335 00
Susanne Lithander, CFO, +46 (0)8 553 335 00
The information in this report is such that BillerudKorsnäs AB (publ) is obliged to disclose under the Swedish Securities Market Act and was submitted for publication at 07.00 CET on 18 February 2014. This report has been prepared in both a Swedish and an English version.
BillerudKorsnäs – Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm. www.billerudkorsnas.com
Click here for full financial report.
In an omitted table, BillerudKorsnäs AB reported fourth-quarter 2013 operating profit of 197 million Swedish kronor and net sales of 4.713 billion kronor, compared with fourth-quarter 2012 operating profit of 25 million kronor and net sales of 3.068 billion kronor.