CHANGED FORECAST FOR 2004
Effects of lower pulp prices
- During the summer we had a recoil on the pulpmarket which has been more extensive than expected. However, we believe that the market will strengthen during the fourth quarter and remain strong during 2005, says Rottneros’ CEO Lars Blecko.
The Rottneros Group still expects a positive result after financial items, but before items of one-off character.
The Board has decided to invest in a new CTMP line at Utansjö Mill. In connection to this investment the production of Magnefite will cease and restructuring costs will occur. The board has also decided close down the operations at the sawmill Rockhammar Timber.
Restructuring costs, of one-off character, amounts to 116 MSEK whereof only 19 MSEK affects the cash-flow. The remaining 97 MSEK refer to write-downs of assets, Utansjö Mill 68 MSEK and Rockhammar Timber 29 MSEK.
Eliminate sources of loss
- Through these powerful restructuring measures we eliminate two major sources of loss. For the time being, there are no other needs for restructuring in the Group. At Utansjö Mill we are investing in a CTMP line that is expected to contribute with a positive result already during 2005. After these measures taken, our competitive power will strengthen even further, says Lars Blecko.
Upplands Väsby, 16 September 2004
ROTTNEROS AB (Publ.)
For further information call CEO Lars Blecko, tel. +46 8 590 00 10 10
A press conference will be held on September 16 at 2.30 p.m. at the office of Hallvarsson & Halvarsson, Birger Jarlsgatan 6B, telephone 08/587 112 00. Please apply to Elina Nilsson at 08/58711226, e-mail: email@example.com
The Rottneros Group, listed on the Stockholm Stock Exchange, is one of the world’s leading non-integrated producers of market pulp. The Group includes the parent company Rottneros AB, five pulp mills in Sweden and Spain, a small sawmill as well as raw materials purchasing companies in Latvia and Portugal. The Group also has marketing companies in Germany and Belgium. Production capacity amounts to 700,000 tonnes. The Group has around 860 employees and turnover of approximately SEK 2,400 million.