Metsä Board lowers its result guidance for the 4Q 2018, which guidance was announced in Metsä Board’s Interim report for January–September 2018. The previous guidance was: Metsä Board’s comparable operating result in the 4Q 2018 is expected to improve compared to the 3Q 2018. Metsä Board’s comparable operating result in the 3Q 2018 was Euro 63.7 million.
The new guidance is: Metsä Board’s comparable operating result in the 4Q 2018 is expected to remain roughly at the same level as in the 3Q 2018.
Uncertainty in the pulp market especially in China weakens the operating result for the 4Q compared to initial expectations. In October–November the delivery volumes in China have been lower than estimated and sales prices have declined in the past weeks. Global demand for market pulp is however expected to remain good in the near future. The good demand outlook for pulp is based on growing global demand for fiber based products, limited amount of new capacity and restrictions on the imports of recovered paper to China.
In addition, the operating result for the 4Q is weakened by late November production disruptions caused by a machinery breakdown at the Husum pulp mill in Sweden. In an integrated mill, disruptions at the pulp mill negatively affect paperboard production. Due to the machinery breakdown, the production volumes of paperboard and pulp at the Husum integrate will be lower than estimated in the 4Q. In addition, repairing the machinery generated costs. The reparation work has been completed and production at Husum integrated mill is back to normal.
Metsä Board is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white kraftliners. Metsä Board, part of Metsä Group.