Metsä Board Corporation’s operating result excluding non-recurring items was EUR 104.4 million in 2013

Full year result for 2013

Sales were EUR 2,019.3 million (Q1–Q4/2012: 2,107.6).
The operating result excluding non-recurring items was EUR 104.4 million (74.9). The operating result including non-recurring items was EUR 113.6 million (221.1).
The result before taxes excluding non-recurring items was EUR 48.6 million (27.7). Result before taxes including non-recurring items was EUR 57.8 million (173.9).
Earnings per share excluding non-recurring items were EUR 0.17 (0.13) and including non-recurring items EUR 0.19 (0.52).
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.09 per share will be paid for the 2013 financial period.

Result for the last quarter of 2013

Sales were EUR 479.2 million (Q3/2013: 502.3).
The operating result excluding non-recurring items was EUR 29.3 million (18.9). The operating result including non-recurring items was EUR 30.6 million (19.3).
The result before taxes excluding non-recurring items was EUR 17.8 million (8.5). Result before taxes including non-recurring items was EUR 19.0 million (9.0).
Earnings per share excluding non-recurring items were EUR 0.09 (0.02) and including non-recurring items EUR 0.09 (0.02).

Events during the last quarter of 2013

Paperboard delivery volumes decreased from the previous quarter mainly due to seasonal reasons. The delivery volume of paper was approximately at the previous quarter’s level.
Folding boxboard price increase negotiations in Europe were completed and contract prices will increase slightly in 2014. During the last quarter of the 2013, there were no significant changes in the average prices of Metsä Board's main products.
Metsä Board announced it would renew its management and reporting structure. As of the first quarter of 2014, the company’s reporting segments will be Cartonboard, and Linerboard and Paper.
Metsä Board prepaid the EUR 150 million term loan of its syndicated credit facility that took effect on 1 April 2013.
Standard & Poor’s Ratings Services upgraded Metsä Board's credit rating from level B to B+. The outlook of the rating is stable. Moody's upgraded the outlook of its B2 rating to positive.

“The operating result of the last quarter of 2013 excluding non-recurring items improved from the previous quarter, as expected. The market situation did not change materially from the previous quarter. Paperboard delivery volumes decreased from the previous quarter, as expected, mainly due to seasonal reasons. We increased the prices of folding boxboard in Europe, resulting in slightly higher annual contract prices for 2014 than last year. Demand for kraftliner was at a good level, and prices remained stable. Paper market situation continued to be weak, and no improvement is expected in paper demand or prices.

Overall, 2013 was a challenging year due to the economic recession in Europe. Despite this, our paperboard deliveries grew by over 7 per cent and we managed to increase the contract prices of folding boxboard at the end of the year. This shows that the demand for Metsä Board's new generation ecological paperboards is strong and they are replacing other packaging materials. In order to grow our kraftliner business, we started the production of fully-bleached uncoated kraftliner at the Husum mill in Sweden in the spring 2013. Husum's new kraftliner products have had an excellent market reception. In December, a new coated paper delivery agreement was signed with Sappi. Through the new agreement, we will be able to increase kraftliner production, since the agreement also makes the production of coated kraftliner grades possible. Sales volumes of kraftliners produced in Kemi also increased as planned in 2013.

Our most important targets for 2014 include growing the folding boxboard sales further in both Europe and outside Europe, particularly in North America, increasing kraftliner production in Husum considerably, and developing new products to replace Husum’s weakest profitable paper production. At the beginning of 2014, we started the production of coated light-weight fully-bleached kraftliner at the Husum mill, in order to complement the current kraftliner product portfolio of both Husum and Kemi mills. Positive price development of our main products is one of our primary objectives in 2014, too. Productivity improvement at Metsä Board's paperboard, paper and pulp mills continued in 2013. The development measures that are under way will further improve Metsä Board's cost competitiveness also in 2014.”

Mikko Helander, CEO

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