BillerudKorsnas Reports Fourth Quarter, Full Year 2012 Results

"With the finalization of the historic combination between Billerud and Korsnas, the fourth quarter was an unusually eventful one." – Per Lindberg, CEO, BillerudKorsnas.

Feb. 8, 2013 - BillerudKorsnas reported fourth quarter and full year 2012 results:

  • Net sales amounted to SEK 3 068 million, compared with SEK 2 628 million in the previous quarter. The increase was due to the Korsnäs acquisition.
  • Operating profit totalled SEK 25 million. The decline of SEK 136 million from the preceding quarter is mainly attributable to non-recurring and seasonal factors.
  • Results for the quarter were charged with non-recurring costs of SEK 102 million. Adjusted to reflect these non-recurring costs, operating profit totalled SEK 127 million.
  • Prices in local currency for packaging materials were improved by just below 2% than in the previous quarter due to implementation of earlier announced price increases.
  • The acquisition of Korsnäs was completed on 29 November 2012 and a preferential rights issue valued at approximately SEK 2 billion was carried out.

Full year 2012 compared with the same period in 2011

  • Net sales amounted to SEK 10 427 million, a rise of 12%.
  • Operating profit fell to SEK 489 million, mainly as a result of lower prices in local currency and a less favourable currency situation.
  • In all, non-recurring costs amounted to SEK 170 million (10).

Proposed dividend

  • The Board of Directors proposes a dividend of SEK 2.00 per share for 2012.

Outlook

  • The order situation for the majority of products in the packaging materials segments is expected to remain at normal seasonal levels through the first quarter of 2013.
  • Prices in local currency for packaging materials are expected to remain stable in the first quarter of 2013.
  • Wood prices in 2013 are expected to be lower than in 2012.
  • It is estimated that non-recurring costs of SEK 48 million, arising from a reduction in the surplus value in the inventory of finished products acquired, will be charged to earnings in the first quarter of 2013.

Comments by BillerudKorsnas’ CEO Per Lindberg:

Eventful quarter rounds off a historic year

“With the finalization of the historic combination between Billerud and Korsnas, the fourth quarter was an unusually eventful one. We also completed the integration of our paper machines in Finland during the quarter. The integration process at BillerudKorsnäs progresses as planned, and from the next quarter on we will start to report the benefits of our synergies. The synergies for the two acquisitions are estimated at approximately SEK 330 million annually, with full impact from the end of 2015.

Our preferential rights issue was oversubscribed, and we greatly value the firm support we have received from our shareholders. The proceeds of the issue, approximately SEK 2 billion, strengthen our financial position and create scope for us to capture future business opportunities.

While our quarterly results have been charged with a number of extra costs, the underlying operational results for the Group are still stable. Most importantly of all, we remain highly optimistic regarding the future opportunities open to BillerudKorsnas.” BillerudKorsnas is a world-leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, and containerboard (fluting and liner). The company also produces market pulp. For more information visit: www.billerudkorsnas.com

SOURCE: BillerudKorsnas