Adjusted operating profit reached SEK 331 million. The increase of SEK 13 million from the previous quarter was mainly attributable to lower fixed costs.

 

Operating profits are negatively impacted by the maintenance shutdowns in the production with approximately SEK 209 million.

 

The increase in both net sales and adjusted operating profit was due to the acquisition of the two paper machines in Finland in June 2012 and the combination with Korsnas in November 2012. Today, BillerudKorsnas has a stronger platform for future growth on the attractive and expanding packaging market.

 

BillerudKorsnas’CEO Per Lindberg comments on the report:

 

“Third quarter’s results show a stable performance. Our adjusted operating profit reached SEK 331 million corresponding to an adjusted operating margin of 7% which, taking the negative impact from the planned maintenance shutdowns into consideration is satisfactory.

 

The quarter has been very eventful in our production units with two planned maintenance shutdowns in Karlsborg and Skarblacka. After some delay in Skarblacka in connection with the major rebuild, all machines are now up and running again and performing as planned.

 

During the quarter, we have agreed on new long-term contracts with all major customers for liquid packaging board, which will contribute to long-term stability of demand. In general, however, the European market currently continues sideways, without strong signs of improvement. We therefore strengthen our efforts to increase sales outside Europe in markets with more healthy demand and we re-allocate resources from Europe to these areas.

 

The Board of Directors have approved an investment in one of the board machines in Gavle amounting to approximately SEK 220 million. The purpose of the investment is to increase machine capacity with approximately 10% to support further growth within the attractive liquid packaging board market. The investment will also improve both cost efficiency and product quality and the rebuild will take place during the planned maintenance shutdown next year.

 

During the quarter the remaining 70% of the shares in PACCESS Packaging LLC in the US were acquired. This is strengthening BillerudKorsnas’ position to bring smarter packaging solutions to brand owners and is a further step in challenging conventional packaging.”