Metsä Board’s operating result in Q1 2018 was EUR 69 million

Metsä Board’s operating result in Q1 2018 was EUR 69 million

May 9, 2018 Off By Sebastian Reisig

Metsä Board Corporation Interim Report 1 January – 31 March 2018, 3 May 2018 at 1200 noon

January–March 2018 (10–122017)

• Sales were EUR 492.3 million (451.3).

• Comparable operating result was EUR 69.0 million (54.4), or 14.0% (12.0) of sales. The operating result was EUR 69.0 million (54.4).

• Comparable earnings per share were EUR 0.15 (0.12), and earnings per share were EUR 0.15 (0.12).

• Comparable return on capital employed was 15.8% (12.4).

January–March 2018 (1–32017)

• Sales were EUR 492.3 million (444.5).

• Comparable operating result was EUR 69.0 million (45.2), or 14.0% (10.2) of sales. The operating result was EUR 69.0 million (45.2).

• Comparable earnings per share were EUR 0.15 (0.10), and earnings per share were EUR 0.15 (0.10).

• Comparable return on capital employed was 15.8% (10.6).

Events in January–March 2018

• The market prices of folding boxboard and white kraftliner rose. The improved sales prices compensated for the unfavourable exchange rate in full.

• The prices of market pulp continued to rise.

• No significant maintenance shutdowns took place during the review period, and the production efficiency of the mills was at a good level.

• The capacity utilisation rate of folding boxboard at the Husum mill is now nearly 90%, and it will not be reported on separately in the future. The improvement of average sales prices still includes significant result improvement potential.

• Due to the strong pulp and paperboard market, Metsä Board raised the result guidance for January–March 2018 it had announced in its 2017 financial statements bulletin.

• Metsä Board’s Annual General Meeting for 2018 was held in Helsinki on 27 March 2018. The Annual General Meeting adopted the company’s financial statements for the financial year 2017 and decided to distribute a dividend of EUR 0.21 per share.

• Standard & Poor’s Ratings Services raised Metsä Board’s credit rating to investment grade. The outlook for the rating is stable.

Events after the review period

Metsä Board Corporation agreed to changes in its syndicated credit agreement maturing in 2020. The agreement has previously consisted of a EUR 150 million term loan and an undrawn revolving credit facility of EUR 100 million. On 27 April 2018, the company paid off EUR 100 million of its existing loan and simultaneously raised its credit facility by EUR 50 million. After the change, the syndicated credit agreement consists of a EUR 50 million term loan and an undrawn revolving credit facility of EUR 150 million.