Interim report January-September 2008

2008-11-13 12:00

Submitted for publication at 12 noon on 13 November 2008



Quarter January-September
2008 2008 2007
III II III 2008 2007
Net
turnover, MSEK 2 038 1 949 1 874 6 083 5690
Operating
profit/
loss, MSEK 126 114 153 454 347
Operating
margin, % 6 6 8 7 6
Profit/loss after
financial
items , MSEK 89 77 122 346 264
Net profit/
loss, MSEK 63 57 85 250 183
Earnings per share,
SEK 1.22 1.11 1.65 4.85 3.56

January-September 2008 compared with January-September 2007

· Net turnover was MSEK 6,083 (5,690).
· Net profit was MSEK 250 (183).
· Earnings per share were SEK 4.85 (3.56).
· Operating profit was MSEK 454 (347).
· From the end of the second quarter the business cycle and demand for
most of Billerud’s products continued to weaken. The market for market
pulp has significantly weakened.
· Market-related production curtailments have been carried out within
some product areas, amounting to around 3% of production capacity during
the second and third quarter.
· Investment amounting to MSEK 370 in rebuilds of kraft paper machines
PM2 and PM7, and investment in a new customer and order management
system, was completed during the third quarter according to plan.

Outlook for 2008

· Market demand for Billerud’s products is expected to continue
weakening in areas relating to industrial production but to be stable in
areas relating to food production and healthcare. The development is
however uncertain.
· Additional production curtailments are expected to be necessary in
the fourth quarter, which will affect profits negatively.
· An improved currency situation and tendency towards lower prices for
wood and input materials will have positive effects in the longer term.
· Further measures for cost reductions will be initiated, with an
expected effect of MSEK 100 in annual savings in addition to the MSEK
150 previously announced.
· A planned maintenance stop will be carried out at Gruvön mill in the
fourth quarter, which normally means extra costs of around MSEK 100.

For further information in connection with this report, please contact:
Per Lindberg, President and CEO, +46 8 553 335 01 or +46 70 248 15 17
and Bertil Carlsén, CFO, +46 8 553 335 07 or +46 730 211 092

Billerud’s President Per Lindberg and CFO Bertil Carlsén will present
the interim report at a webcasted press conference for analysts and
journaliststoday, 13 November, at 3 p.m.
Location: Spårvagnshallarna, Birger Jarlsgatan 57 A, Stockholm.

The full report
Last updated: 2012-06-01