Metsä Board presents Interim report until Q3 2016
Metsä Board's comparable operating result for the fourth quarter of 2016 is expected to remain roughly on the same level as in the third quarter of 2016.
Mika Joukio, CEO:
“Comparable operating result for the third quarter remained on the same level as in the previous quarter, as we expected. Our result continued to be burdened by the lower price level of the start-up volumes of Husum's new folding boxboard. In addition, a leak in the pulp mill's recovery boiler and the production-related challenges of the new folding boxboard machine in the second quarter slowed down our customer deliveries especially to North America. The production and delivery volumes of Husum's new folding boxboard have increased steadily since the summer, and the average price of the order inflow is already at a good level. Due to the long lead time, the profit impact of the improved average price will nevertheless be visible with a delay of approximately three months. The profit development of our Finnish mills was positive. The decrease in working capital turned our cash flow from operations clearly positive.
During the review period, we produced our last fine paper reels and announced to discontinue the loss-making wallpaper business. In the future, we will focus on premium fresh fibre paperboard used in consumer goods and retail-ready packaging, in line with our strategy.
After the review period, we were identified by CDP as a global leader for our actions and strategies in response to climate change. The importance of responsibility and its assessment is gaining increased prominence in our customer relationships, and improves our competitiveness. I am also very proud of the recognition our premium products received at the Pro Carton ECMA Awards, in which Metsä Board's fresh fibre paperboard was used in three prize-winning paperboard packages.
Metsä Board's future looks bright. Husum's new folding boxboard machine’s capacity is approaching the targeted nominal capacity, which enables us to better meet increasing demand in our main market areas. Next year, we will also have our own extrusion coating line, which will expand the range of paperboard suitable for food and food service packaging. We can look forward to a busy year in 2017, but we have every chance of achieving our long-term growth and profitability targets.”