Holmen: Interim Report, January-March 2002


STOCKHOLM, Sweden, April 29, 2002 (PRIMEZONE) -- Holmen:


                                 Quarter          Full
                                                  year
                            1-02    4-01    1-01    2001
Net turnover        MSEK   3,938   4,343   4,116  16,655
Operating profit
excl. items
affecting                    
comparability       MSEK     743     791     703   3,066
Operating profit    MSEK     743     171     703   2,446
Profit after
financial items     MSEK     705     128     699   2,294
                    
Earnings per share   SEK    6.20    2.80    6.10   27.30
Return on equity   %        14.4    6.5     13.4    16.0

- The profit after financial items amounted to MSEK 705 (2001 Q1: 699). 
  The first quarter of this year includes a profit of MSEK 110 on the
  sale of the paper machine that has been replaced at the Hallsta Paper 
  Mill. The profit for the fourth quarter of 2001 was MSEK 748
  (excluding items affecting comparability).

- Net turnover amounted to MSEK 3,938 (4,116). Net turnover for the
  fourth quarter was MSEK 4,343.

- The operating profit amounted to MSEK 743 compared with MSEK 703 for
  the first quarter of 2001.

- The profit after tax was MSEK 499 (490), which corresponds to earnings 
  per share of SEK 6.20 (6.10). The return on equity was 14.4 per cent 
  (13.4).

- The market for newsprint and magazine paper remained weak. The prices
  of Holmen Paper's products were lower than in the fourth quarter of 
  2001. Production was restricted due to replacement of the paper machine
  at the Hallsta Paper Mill and lower demand.

The market for paperboard remained weak and Iggesund Paperboard's production was restricted. Prices were stable.

BUSINESS AREAS

Holmen Paper

The market for newsprint and magazine paper remained weak during the first quarter. Deliveries of standard newsprint to Western Europe were 11 per cent lower than in the corresponding period last year.

Holmen Paper's deliveries declined by 12 per cent in relation to the fourth quarter. Production was restricted due to the replacement of the paper machine and lower demand. The prices of Holmen Paper's products, which are largely based on annual contracts, were lower than in the fourth quarter of 2001.

The operating profit for the January-March period was MSEK 470 (495). The result was adversely affected by lower prices and lower volumes, which was partly offset by positive currency effects. The first quarter includes a profit of MSEK 110 on the dismantling and sale of the old machine in connection with the installation of the new paper machine at the Hallsta Paper Mill.

The profit declined by MSEK 98 in relation to the fourth quarter of 2001. Apart from the effects of changing paper machine, lower prices and lower delivery volumes had an effect on the result.


                                 Quarter          Full
                                                  year
Holmen Paper                1-02    4-01    1-01    2001
Net turnover        MSEK   1,894   2,283   2,041   8,757
Operating profit    MSEK     470     568     495   2,410
Operating margin       %      25      25      24      28
Return on operating           20      24      23      26
capital                %
Production 1,000
tonnes                       362     387     394   1,586
Deliveries 1,000
tonnes                       345     394     369   1,525

Iggesund Paperboard

The market for paperboard remained weak during the first quarter. West European producers' deliveries of virgin fibre-based paperboard were 1 per cent lower than in the first quarter of 2001. In relation to the fourth quarter of 2001, deliveries rose by 7 per cent, mainly due to normal seasonal variations.

Iggesund Paperboard's deliveries increased in relation to the fourth quarter but production restrictions were continued. Prices were stable.

The operating profit for the January-March period amounted to MSEK 186 (142). The improvement in the result was due to higher delivery volumes and lower costs.

The profit increased by MSEK 76 in relation to the fourth quarter of 2001 due to slightly higher delivery volumes in the first quarter and relatively high costs in the fourth quarter.


                                 Quarter          Full
                                                  year
Iggesund Paperboard         1-02    4-01    1-01    2001
Net turnover        MSEK   1,205   1,181   1,102   4,467
Operating profit    MSEK     186     110     142     455
Operating margin       %      15       9      13      10
Return on operating           17       9      11       9
capital                %
Production,
paperboard
1,000 tonnes                 106     106     106     403
Deliveries,
paperboard
1,000 tonnes                 110     106     104     410

This information was brought to you by Waymaker http://www.waymaker.net

The following files are available for download:


www.waymaker.net/bitonline/22002/04/29/20020429BIT00660/wkr0001.doc
The full report

www.waymaker.net/bitonline/22002/04/29/20020429BIT00660/wkr0002.pdf
The full report