M-real's consolidated result before taxes, excluding non-recurring items, improved to EUR 16 million from a loss of EUR 11 million in the previous quarter. The operating result excluding non-recurring items amounted to EUR 35 million. Profitability improved mainly due to the increase in the volume of paperboard and fine paper delivered, as well as lower fixed costs achieved through implemented savings measures. By contrast, profitability was weakened by the significant increase in energy costs and higher fibre cost, particularly in the Commercial Printing business area.
|
KEY FIGURES |
1-3/06 |
10-12/05 |
1-3/05 |
1-12/05 |
|
Sales, Me |
1,441 |
1,369 |
1,344 |
5,241 |
|
Operating result, Me |
35 |
-27 |
115 |
36 |
|
excluding non-recurring items, Me |
35 |
11 |
30 |
4 |
|
Result before taxes, Me |
16 |
-49 |
77 |
-114 |
|
excluding non-recurring items, Me |
16 |
-11 |
-8 |
-142 |
|
Result for the period, Me |
3 |
-38 |
77 |
-80 |
|
Earnings per share, e |
0.01 |
-0.12 |
0.23 |
-0.25 |
|
Return on equity, % |
0.5 |
-6.6 |
12.5 |
-3.4 |
|
excluding non-recurring items, % |
0.5 |
-0.5 |
-1.3 |
-4.8 |
|
Return on capital employed, % |
3.4 |
-1.8 |
10.1 |
1.2 |
|
excluding non-recurring items, % |
3.4 |
1.4 |
3.0 |
0.5 |
|
Equity ratio at end of period, % |
36.2 |
36.6 |
38.6 |
36.6 |
|
Gearing ratio at end of period, % |
100 |
95 |
81 |
95 |
|
Interest-bearing net liabilities, Me |
2,296 |
2,205 |
1,988 |
2,205 |
|
Gross investments, Me |
103 |
144 |
93 |
452 |
|
Paperboard deliveries, 1,000 tonnes |
304 |
268 |
281 |
1,006 |
|
Paper deliveries, 1,000 tonnes |
1,080 |
1,037 |
1,019 |
4,046 |
|
Personnel at end of period |
15,046 |
15,154 |
15,453 |
15,154 |
M-real's President & CEO Hannu Anttila commented: "While we achieved a positive financial result in line with our objectives, our profitability is modest. This is due to a sharp rise in costs, which we have not been able to successfully offset by raising product prices. The upward trend in production costs and resulting pressure to raise the prices of paper and paperboard continues."
"M-real's gearing ratio has reached the set maximum level. This is attributable to profitability being weaker than anticipated, losses due to last summer's labour disputes and investments allocated to strategic projects such as the Kaskinen BCTMP mill, Simpele board mill and Metsä-Botnia's pulp mill in Uruguay. In the short-term we will focus on cost savings projects as well as managing the indebtedness development. While our second-quarter performance is anticipated to be weaker than in the first quarter, we are confident the financial result for 2006 excluding non-recurring items will be positive," Anttila concluded.
M-real is one of Europe’s leading suppliers of paperboard and related services, coated and uncoated fine paper and coated magazine paper.