Although BillerudKorsnäs' net sales for the 2Q 2016 amounted to SEK 5 439 million ($632 million) which was SEK 50 million ($5.8 million) lower compared to the same period last year, for comparable units net sales increased with SEK 105 million ($12.2 million), or approximately 2%. 2Q net profit slips to SEK 400 million ($46.5 million) from SEK403 million ($46.9 million) in year-ago period, as the company says in the press release received by Lesprom Network.
Sales volumes increased by 4%, mainly following last year’s rebuild of the fluting machine PM6, but this was counteracted by increased price pressure in some segments and the divestiture of Latgran.
For comparable units total net sales improved with 2%. Packaging Paper sales volumes increased compared to last year due to increased sales volumes of kraft and sack paper. Corrugated Solutions volumes and sales developed positively compared to last year in all segments. Consumer Board had a reduction in sales volumes due to previous production disturbances at the Frövi mill affecting stock levels available for delivery during the quarter.
EBITDA decreased with 4%, primarily due to that both Gruvön and Skärblacka performed planned maintenance shutdowns during the quarter as compared to only Gruvön last year (net effect SEK -74 million ($8.6 million).
The divesture of Latgran in combination with price pressure also led to a negative EBITDA development. On a positive note there was a reduction in variable costs which is mainly explained by lower raw material costs.
BillerudKorsnäs is a world-leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, and containerboard (fluting and liner). The company also produces market pulp.
