INTERIM REPORT, JANUARY TO SEPTEMBER 2014
Strong upward trend continues
It is with great delight and satisfaction that we are able to report a continuing upward trend for the third quarter. The Group is showing an operating profit of SEK 53 million, which is significantly better than the levels reported in recent years. The operating profit for the first nine months of the year amounted to SEK 106 million, representing an improvement of SEK 125 million compared with the same period of 2013.
Good market prospects and favorable currency trends have paved the way for this significant improvement to our results. In addition to this, internal measures with a clear focus on structured working methods have brought good order to our mills within a short period of time. This will also increase production availability in the future.
We are continuing to work on a broad front to build a new Rottneros. Modern and cohesive leadership represents a critical piece of the jigsaw for achieving market leadership and sustainable profitability. By creating common core values for all workers, we are laying the foundation for long-term success. For this reason we launched an advanced leadership training program for all managers within the Group after the summer. The next phase of this work will involve our entire workforce. So far our ’Core value project’ has been successful and has great prospects of proving to be of decisive importance for our future. Our yearly maintenance stop in Vallvik was conducted during October and it went successfully according to plan. The cost of the stop will affect the result for the fourth quarter.
It is also pleasing that the process of selling the production equipment from Utansjö Bruk has borne fruit after several years' work. The sale of the equipment to BillerudKorsnäs, which is to be completed during the fourth quarter, is expected to provide a cash injection of SEK 39 million.
The normal seasonal decline in August never emerged, and the strong demand reached new heights in September. The market for softwood kraft pulp continues to be strong and our order books are well filled for the fourth quarter. Projects are being conducted at both mills that will further increase productivity following the maintenance shutdown in the autumn.
To conclude, I am excited about the forthcoming quarter and the opportunities that our extensive program of change will yield for the future.
For more information, please visit Rottneros’ updated website, www.rottneros.com.
This report has not been reviewed by the company’s auditors.
Stockholm, 23 October 2014
Chief Executive Officer and President
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 24 October 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.