Rottneros reports Q1 after-tax net profit of 16M Swedish kronor, compared with loss of 4M kronor a year earlier, on revenues up 7.3% year-over-year to 380M kronor; improvement driven by higher pulp prices, helped by production stability at Vallviks Bruk

Aimee Bellah

STOCKHOLM , April 25, 2014 (press release) – Rottneros: INTERIM REPORT JANUARY TO MARCH 2014

Period in rewiev
	Jan-Mar 2014	Oct-Dec 2013	change	Jan-Mar 2013	change
Net turnover, SEK m	380	317	63	354	26
Operating Income, SEK m	21	-42	64	-6	27
including items affecting comparability	21	-42	64	-6	27
Income after net financial items, SEK m	20	-43	63	-4	24
Profit/loss after tax, SEK m	16	-43	59	-4	20
Earnings per share after tax, SEK	0.10	-0.28	0.38	-0.03	0.13
including items affecting comparability	0.10	-0.28	0.38	-0.03	0.13
Cash flow before investments, SEK m	9	2	7	21	-12

Profit after net financial items amounted to SEK 20 million for the first quarter of 2014, compared with losses of SEK -43 million for the fourth quarter of 2013 and SEK -4 million for the first quarter of 2013.
The average PIX price for NBSK amounted to USD 916 for the first quarter of 2014. The price increase in Swedish kronor is twelve per cent compared with the same period of 2013.

The price increase is two per cent compared with the previous quarter and was affected negatively by the weak dollar.Stable production at Vallviks Bruk during the first quarter resulted in lower direct costs, which had a positive impact on the result.
Cash flow from operating activities amounted to SEK 9 (21) million for the first quarter of 2014. Net borrowing amounted to SEK ‑25 (‑33) million on 31 March.

CEO’s statement
It is both gratifying and inspiring to report an improvement in our results for the first quarter. Our operating profit increased by SEK 27 million, to SEK 21 million, compared with the same quarter of last year. This improvement was primarily driven by higher pulp prices, although it was also helped by lower variable costs attributable to better production stability at Vallviks Bruk.

The extensive programme of change that we initiated in the autumn of 2013 is continuing on track and on time. The objective of these changes is to strengthen our competitiveness and assure our long-term profitability. The first phase of this programme (Focus 15) will be completed by January 2015. Focus 15 is primarily targeted at improving operational efficiency and boosting production volumes. We expect to see the impact of Focus15 even more clearly towards the end of the year when the measures we have implemented will start to bear fruit in the form of among other things increased volumes, mainly at Vallviks Bruk. We are focusing on establishing clear routines and areas of responsibility where safety continues to represent a common theme within all of our activities. We are also making greater efforts to provide clear leadership and will reinforce our common set of core values.

The market has developed strongly during the first quarter, with continuing increase of demand for chemical pulp. The CTMP market also strengthened and demonstrated good balance during the quarter, with a price rise that was primarily driven by growing demand in Asia.

I rejoice at the positive and open attitude I meet in many parts of the organisation, which represents a basic precondition for bringing about change. I am firmly convinced that our intensive work will provide us with the availability and productivity and, not least, also establish the culture required for our long‑term profitability.

Carl-Johan Jonsson
President and CEO

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