BillerudKorsnäs' 1Q 2017 operating profit SEK 550 million ($61.8 million) falls short of its expectations. This is due to the ramp up of Rockhammar after the rebuild in 2016 and quality costs emanating from production disturbances during the second half of 2016, as the company said in the press release received by Lesprom Network.
Net sales for the 1Q 2017 were SEK 5 636 million, or 5% higher than 1Q 2016 and the underlying organic sales increase was 3%.
1Q EBITDA (SEK 923 million ($6103.7 million) decreased with 9%, driven by slightly lower average local prices mainly for Fluting, additional costs for the maintenance shutdown in Gruvön and increased costs for quality issues and externally purchased pulp related to the rebuild issues at Rockhammar. This was somewhat mitigated by a favourable currency development.
Per Lindberg, BillerudKorsnäs’ CEO, said: “The 1Q 2017 saw growth on the back of high demand in the markets across all business areas. Sales are showing better than expected growth, and our production is in fact at an all-time high for a single quarter. However, our operating profit during the quarter suffered from spillover effects from 2016, and we have as a consequence undertaken significant measures to address both our start-up performance as well as quality performance.”
BillerudKorsnäs is a world-leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, and containerboard (fluting and liner).
