INTERIM REPORT (JANUARY-JUNE 2014)
- Profit after net financial items amounted to SEK 31 million for the second quarter of 2014, compared with a profit of SEK 20 million for the first quarter of 2014 and a loss of SEK -20 million for the second quarter of 2013. Profit after net financial items amounted to SEK 50 (‑24) million for the first half of the year.
- A strong market has led to that the average PIX price for NBSK continued to rise during the second quarter and amounted to an average of USD 924. The price increase in Swedish kronor amounts to ten per cent compared with the corresponding period of 2013. The price increase amounts to two per cent compared with the previous quarter.
- Production continued to be stable at Vallviks Bruk during the second quarter, which resulted in lower direct costs and had a positive impact on the result.
- The increase in working capital had a negative impact on cash flow of SEK 73 million, mainly due to the high level of invoicing in June. Cash flow from operating activities amounted to SEK -3 (-9) million for the second quarter of 2014. Net borrowing amounted to SEK ‑42 (‑45) million on 30 June.
(For table, see attached file)
The journey continues – a strong first half year for Rottneros
I would like to start by saying that I am very satisfied with our performance during the first six months of this year, which resulted in an operating profit of SEK 53 million, a level we have not been close to achieving since the first half year of 2011.
Our strong focus on management by objectives and new working methods combined with clear leadership has brought good order and improved production availability. Stable market conditions together with our programme of change have resulted in a strong first half year.
Our programme of change – Focus15 – continues to be pursued vigorously within our operations. New working methods have, among other things, resulted in more stable production and fewer production hours lost at Vallviks Bruk compared with previously. We are running several parallel projects to increase our capacity, which are expected to yield results after the annual maintenance shutdown in the autumn. The operation at Rottneros Bruk has performed well, with more stable production and continued good demand during the second quarter.
We are launching an advanced leadership training programme in the autumn. Our work to develop modern, uniform leadership with clear management by objectives represents an integral component of our programme of change and is both a vital and central part of our plan to become a market leader.
The paper pulp market remains stable and demand is being underpinned by the moderate recovery of the world economy. Capacity utilisation for long‑fibre sulphate pulp was 93 per cent for the year, which must be considered good, and the price of NBSK has been USD 925 per tonne for some time now.
In conclusion, I am looking forward to an exciting second half to the year and to seeing the future effects of Focus15.
(For full report, including tables, please see attached file)
Rottneros discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. This information was submitted for publication on 23 July 2014 at 08.30. A Swedish and an English version of this report have been drawn up. The Swedish version shall prevail in the event of differences between the two reports.