Metsä Board’s comparable operating result in January–March 2019 was EUR 62 million

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January–March 2019 (10–12/2018)

  • Sales were EUR 487.1 million (458.0).
  • Comparable operating result was EUR 61.8 million (60.1), or 12.7% (13.1%) of sales. Operating result was EUR 71.9 million (60.1).
  • Comparable earnings per share were EUR 0.14 (0.14), and earnings per share were EUR 0.17 (0.14).
  • Comparable return on capital employed was 14.4% (13.7%).

January–March 2019 (1–3/2018)

  • Sales were EUR 487.1 million (492.3).
  • Comparable operating result was EUR 61.8 million (69.0), or 12.7% (14.0%) of sales. Operating result was EUR 71.9 million (69.0).
  • Comparable earnings per share were EUR 0.14 (0.15), and earnings per share were EUR 0.17 (0.15).
  • Comparable return on capital employed was 14.4% (15.8%).

Events in January–March 2019

  • The prices of Metsä Board’s folding boxboard rose as of the beginning of the year, and the prices of white kraftliner remained stable.
  • The total deliveries of paperboard grew from the previous quarter, but were lower than in the corresponding period in 2018. Demand for folding boxboard was good, but the delivery volumes of white kraftliner continued to decline, especially in Europe.
  • The delivery volumes of market pulp began to grow again after the sudden decline in the previous quarter. The market in China picked up, and prices began to rise during the review period. In Europe, prices decreased.
  • No annual maintenance shutdowns took place at Metsä Board’s mills during the review period. An annual maintenance shutdown took place in March at the Äänekoski bioproduct mill of Metsä Board’s associated company Metsä Fibre.
  • The Annual General Meeting held on 28 March 2019 decided to distribute a total of EUR 103 million to shareholders as dividends and capital repayment. The dividend and capital repayment date was 9 April 2019.

Events after the review period

Metsä Board has created a new, enhanced folding boxboard portfolio, designed specifically to help brand owners and packaging converters tackle the big issues in packaging: saving resources, reducing carbon footprint and ensuring product safety.

Metsä Board and its associated company Metsä Fibre, have decided to launch pre-engineering phases for three major investments. The investments will further develop the competitiveness of the pulp and energy production for both companies, and move them towards fossil-free production. Metsä Board is planning to invest EUR 300 million in the first phase of the renewal of the Husum pulp mill in Sweden in 2019–2022. Metsä Fibre’s plans include the construction of a new bioproduct mill with annual pulp capacity of approximately 1.5 million tonnes in Kemi, Finland and a new pine sawmill in Rauma, Finland. The total value of Metsä Fibre’s investments would amount to approximately EUR 1.7 billion.

Metsä Board updated its long-term financial targets. The company will remove the volume growth target of paperboard deliveries that exceeds the average market growth. The other financial targets remain unchanged.

Link to press release

Source: Metsä Board