INTERIM REPORT JANUARY-MARCH 2008 QUARTERLY REPORT JANUARY-MARCH 2008
• After provision for close-down expenses of SEK 90 million at Utansjö Mill, the Group is posting a loss after net financial items of SEK -122 (14) million for the first quarter.
• On 9 January 2008 it was announced that Rottneros’ Board of Directors has asked the Group’s CEO to conclude negotiations with the relevant trade unions concerning implementation of the previously agreed closure of Utansjö Mill. The intention is for production at the mill to cease during May 2008.
• Higher costs for wood have reduced earnings in the first quarter by SEK 72 million compared with 2007.
• After completing its main study, Rottneros has decided to go ahead with plans to establish a presence in South Africa. The Board has asked the CEO to conclude negotiations on and sign the necessary agreements. The supply of electricity is uncertain.
• Ole Terland took up the position of CEO and President on 1 February 2008.
• The company is not providing a forecast for the full year 2008.
THIS IS ROTTNEROS
Rottneros, with origins dating back to the 1600s, is a non-integrated, flexible supplier of customised, high-quality paper pulp. Through continuous product development, high delivery reliability, technical support and service, Rottneros is able to adapt to the changing requirements of discerning customers.
Rottneros has a total annual production capacity of some 700,000 tonnes of pulp, produced at five mills in Sweden and Spain, making the Group one of the ten largest suppliers of market pulp in the world. The company works to achieve a more stable and higher level of profitability over the course of the economic cycle through increasingly intensive product development in line with customer demands. The Group has introduced a comprehensive financial hedging policy to even out cyclical fluctuations in earnings.
(For full report see attached file.)