INTERIM REPORT JANUARY TO MARCH 2014
- Profit after net financial items amounted to SEK 20 million for the first quarter of 2014, compared with losses of SEK -43 million for the fourth quarter of 2013 and SEK -4 million for the first quarter of 2013.
- The average PIX price for NBSK amounted to USD 916 for the first quarter of 2014. The price increase in Swedish kronor is twelve per cent compared with the same period of 2013. The price increase is two per cent compared with the previous quarter and was affected negatively by the weak dollar.
- Stable production at Vallviks Bruk during the first quarter resulted in lower direct costs, which had a positive impact on the result.
- Cash flow from operating activities amounted to SEK 9 (21) million for the first quarter of 2014. Net borrowing amounted to SEK ‑25 (‑33) million on 31 March.
It is both gratifying and inspiring to report an improvement in our results for the first quarter. Our operating profit increased by SEK 27 million, to SEK 21 million, compared with the same quarter of last year. This improvement was primarily driven by higher pulp prices, although it was also helped by lower variable costs attributable to better production stability at Vallviks Bruk.
The extensive programme of change that we initiated in the autumn of 2013 is continuing on track and on time. The objective of these changes is to strengthen our competitiveness and assure our long-term profitability. The first phase of this programme (Focus 15) will be completed by January 2015. Focus 15 is primarily targeted at improving operational efficiency and boosting production volumes. We expect to see the impact of Focus15 even more clearly towards the end of the year when the measures we have implemented will start to bear fruit in the form of among other things increased volumes, mainly at Vallviks Bruk. We are focusing on establishing clear routines and areas of responsibility where safety continues to represent a common theme within all of our activities. We are also making greater efforts to provide clear leadership and will reinforce our common set of core values.
The market has developed strongly during the first quarter, with continuing increase of demand for chemical pulp. The CTMP market also strengthened and demonstrated good balance during the quarter, with a price rise that was primarily driven by growing demand in Asia.
I rejoice at the positive and open attitude I meet in many parts of the organisation, which represents a basic precondition for bringing about change. I am firmly convinced that our intensive work will provide us with the availability and productivity and, not least, also establish the culture required for our long‑term profitability.
President and CEO
Rottneros AB (publ)
Corp. ID no. 556013-5872
Box 144, SE-826 23 Söderhamn
Tel. +46 8 590 010 00, fax +46 8-590 010 01
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 25 April 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.