Net sales as well as volumes for the 4Q were slightly above net sales for the corresponding period last year, despite the negative effect from the Latgran divesture.
Volumes for Consumer Board grew well above the 4-5% growth target and Packaging Paper grew by 3% mainly due to increased pulp sales. Containerboard volumes remained on the same level as last year.
Per Lindberg, President and CEO, said: “The operating profit for the quarter was SEK 320 million ($37.4 million), burdened with approximately SEK 245 million ($28.6 million) in unplanned extra costs. The extra costs have occurred during rebuilds and cost overruns in maintenance in our mills. We have run into technical problems that have taken longer than planned to fix and caused major cost overruns and loss of volumes, and on top of that a flooding in Beetham.
“Total extra cost for rebuilds and rebuild related production volume losses is approximately SEK 150 million ($17.5 million), and cost increases for maintenance an additional SEK 95 million ($11 million). We are not at all happy with our 4Q performance and we have to learn from this.
“Hence, we have decided to postpone the final phase of the build-out of the board machine in Frövi that was planned for 2016. Capacity is already built to run 525 ktonnes in 2018. This will make the investment level in 2016 approximately SEK 1 300 million excluding future restructuring projects in Gruvön and Skärblacka.”
BillerudKorsnäs AB is a Swedish pulp and paper manufacturer with headquarters in Solna. The company was established in 2012 as a fusion of competing firms Billerud AB and Korsnäs AB.
