LESSEBO, Sweden, April 26, 2002 (PRIMEZONE) -- Klippan AB:
- Profit after net financial items MSEK 18.1 (6.5) - Improved orderbook - Acquisition of Stora Enso Molndal AB - A new share issue is proposed at today's annual general meeting
Sales
The market for the European fine paper industry experienced a slow improvement during the first quarter, with an increased number of orders received, for both uncoated and coated paper compared to the same period last year. Orders to European paper mills increased by 3% and 11% respectively. However, deliveries were still below last year's level.
For Klippan, orders received have been good during the first quarter and the current orderbook indicates that production will be fully covered until the holiday stoppage.
Export prices have been affected by the strengthened Swedish krona and have thus fallen by some 3% over the quarter. Price increases were carried out on the home market at the end of February, and will be followed by price increases on the continent in May.
Production
Paper production during the first quarter amounted to 26,100 tons (24,850). Pulp production was more or less unchanged.
Result
Operating profit for the group amounted to MSEK 20.6 (10.7) and profit after financial items amounted to MSEK 18.1 (6.5). The return on capital employed for the latest 12 month period was 14.5% (10.8). The improved result (MSEK 11.6) was in the first instance dependent upon reduced variable costs. Pulp prices fell slightly during the first quarter. However, the pulp industry has advertised increased prices during the second quarter.
The Swedish krona strengthened during the first quarter. Through currency offsets against purchases and favourable term contracts, the currency losses have been kept at a low level. The company's improved liquidity has entailed a reduction in interest costs of MSEK 1.6.
At the end of the first quarter, the number of employees at work was 509 (505).
Investments
Investments for the period amounted to MSEK 1.3 (0.1). Investment activity is traditionally low during the first quarter. The main part of the investment expenditure is spent during the third quarter, when the company has a four-week stoppage for holidays, maintenance and investment works. The total investments for the year are expected to amount to some MSEK 30.
Liquidity and financing Group liquid assets, including the unused proportion of the bank overdraft facility, amounted to MSEK 106.2 (49.2) at the end of the quarter. The interest bearing net liability reduced by MSEK 89.6 to MSEK 111.4. Solidity amounted to 40.6% (32.7) and the debt/equity ratio to 0.5 times (1.1).
Cash flow analysis
Acquisition of Stora Enso Molndal AB
Klippan has acquired all the shares in Stora Enso Molndal AB for MSEK 75. For the first quarter, turnover in Molndal amounted to MSEK 180, but as the take-over took place on 2 April 2002, this is not included in Klippan's accounts. The company is currently changing its name to Klippan Molndal AB. By means of the acquisition, Klippan will become the leading supplier of coloured fine paper in Europe and is also broadening the range with fully coated fine paper for graphic purposes.
New share issue for Klippan
As part of the financing of the aforementioned acquisition, the Board has decided to propose to the annual general meeting to decide upon a new share issue. The proposal means that the company's share capital increases by at most MSEK 10.3. The new shares are issued at a price of SEK 20 per share and a shareholding of three existing shares entitled the holder to subscribe to one new share.
New group management
In conjunction with the acquisition of Stora Enso Molndal AB, new group management has been appointed. Newcomers to the group management team are Bjarne Bjork (Production/Environment Manager and Unit Manager Molndal), Kenneth Nellros (Finance/IT Manager) and Bo Rosengren (Unit Manager, Klippan).
Next report Klippan's interim report for the first six months of 2002 will be presented on 29 August 2002.
Lessebo, 25 April 2002
Bengt Ostensson President
The contents of this report have not been the subject of examination by the company's auditors.
For further information, please contact the President, Bengt Ostensson, tel +46(0)771-11 00 00 or +46(0)70 595 86 27 or Accounts Manager Hans Hultgren, tel +46(0)771-11 00 00 or +46(0)70 623 53 94.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/04/26/20020426BIT00380/wkr0001.doc www.waymaker.net/bitonline/2002/04/26/20020426BIT00380/wkr0002.pdf