Today Billerud announced its result for the first half year 2008. Net turnover was MSEK 4,045, up 6% on the same period previous year. The operating profit was MSEK 328, a rise of MSEK 134, or 69%, on the same period previous year. The market and demand situation for most of Billerud’s products weakened during the second quarter due to a generally weaker business cycle.
Billerud’s CEO Per Lindberg comments:
“We are proud to report earnings for the first half of the year that yields a return on working capital of 13% and a return on equity of 15% over rolling 12 months. During the first two quarters we have maintained the operating margin of 8% that we achieved last year, and reduced our energy costs.
The international forest products industry is facing many challenges right now. Billerud’s comparative strength is that we primarily operate in niches that feature a long-term stable growing demand for effective and eco-friendly packaging.
The effect of weaker demand due to a generally weakened business cycle that we could not rule out in the first quarter affected to some extent the second quarter. The increased concern for the business cycle in the second half of this year and beyond, we will meet with the same strategy we have benefitted from so far. This means continued hard work aimed at selling the value creation offered by our products to our customers and end-users. We will also continue to develop our products and continue to improve our efficiency and reduce costs.”
24 July 2008
Billerud AB (publ)
President and CEO