Euro
|
|
1H 2005 |
1H 2004 |
|
Sales |
404.2 million |
534.6 million |
|
Operating profit |
4.0 million |
71.2 million |
|
Result before extraordinary items |
1.5 million |
71.6 million |
|
Investments |
82.7 million |
39.2 million |
|
Return on capital employed |
0.21% |
11.6% |
|
Equity ratio |
69.8% |
71.1% |
|
Gearing ratio |
2.9% |
1.2% |
Lockouts and local strikes had a marked impact on business during the second quarter of the year. First-half sales were 24% down on the same period last year at Euro 404.2 million after 534.6 million in 2004. The volume of pulp sales fell correspondingly by some 22% to 945,619 tonnes. The result of operations was a loss of Euro 4.0 million, a considerable decline on the Euro 71.2 million profit booked for the first half of 2004.
Market prices for softwood pulp in foreign currencies were on average 9% below those for the second quarter of last year. Average prices for hardwood pulp were 9% stronger. The dollar was 5% stronger than during the first half of 2004.
Second-quarter operating profit was Euro -27.9 million, much lower than for the first quarter of this year. The sales volume was 45% down on the first quarter at 336,530 tonnes. Market prices in foreign currencies were 7% lower for softwood pulp but three per cent higher for hardwood pulp. The dollar was 2% weaker than in the previous quarter.
The forest industry company Oy Metsä-Botnia Ab - marketing name Botnia - was founded in 1973, and it manufactures high quality bleached pulp grades under the name Botnia. Botnia is owned by M-real Oyj, Metsäliitto Osuuskunta, and UPM-Kymmene Oyj. Its pulp mills are located in Joutseno, Kaskinen, Kemi, Rauma, and Äänekoski.