• Loss after net financial items amounted to SEK ‑20 (36) million for the
second quarter of 2013. Loss after net financial items amounted to SEK -24
(32) million for the first half of 2013. The deviation is in all essential
respects attributable to prices and currency rates. This result has been
affected by costs relating to the outgoing CEO in accordance with the
applicable contract.
• Cash flow from operating activities amounted to SEK -9 (67) million for the
second quarter of 2013. This negative cash flow is fully explained by a
drop in performance.
• The USD price for chemical pulp rose by USD 50 per tonne during the period
January to June and by USD 23 per tonne during the second quarter. However,
the average price was SEK 302 per tonne less than the previous year owing
to the weak dollar rate
• As previously reported, Carl-Johan Jonsson took office as the new CEO and
President on 1 July 2013.
CEO’s statement
Global economic development continues to be rather weak. The same applies to
the global pulp market. Deliveries to China and Europe increase in some months
but reduce in others. All in all global pulp deliveries increased by almost two
per cent during the first five months of the year compared with the first five
months of the previous year. The PIX price for NBSK pulp in Europe continued to
rise during the spring, and the average price for the second quarter was just
over USD 850 per tonne compared with just over USD 820 tonnes for the first
quarter of the year. The PIX price for the stronger USA market has reached USD
950 per tonne. It is primarily our dependency on currencies, and the strong
Swedish kronor that is exasperating the forestry industry and its
profitability.
Global pulp stocks are hovering around ‘normal levels’, which serves to
increase confidence levels ahead of July and August, which are slightly weaker
months in terms of deliveries and may mean that the stronger delivery period
for both China and Europe could gain momentum from stock levels with a balanced
base. A number of long fibre-based pulp mills were converted for dissolving
pulp production in 2013 and one large Nordic mill as well as a couple of
Russian plants closed down, which looks favourable in terms of the balance
between supply and demand. There will be an increase in the short fibre
capacity in South America in 2013 and 2014, which could affect stability in the
market.
I took office as CEO and President of Rottneros on 1 July and would like to
conclude my first CEO’s statement by thanking my predecessor Ole Terland for
his achievements at Rottneros and for enabling a seamless handover.
Carl-Johan Jonsson
FORTHCOMING FINANCIAL INFORMATION
22 October 2013 Interim Report January-September 2013
24 January 2014 Year-end Report for 2013
The information in this interim report is such that Rottneros is required to
disclose under Sweden's Securities Market Act.
The report was released for publication on 18 July 2013 at 08.00 CT.
(For full report, see attached file)
Rottneros, a company that was originally established in the 1600s, is an
independent and flexible supplier of customised paper pulp of high quality.
Rottneros has been able to adapt in order to meet high customer expectations by
continually developing its products and maintaining high levels of delivery
reliability, technical support and service.
Rottneros has an annual production capacity of almost 400,000 tonnes of pulp at
two mills in Sweden. Increasingly intensive product development in line with
the requirements of customers will result in profitability that is higher and
more stable throughout the business cycle.
Rottneros AB (publ)
Box 70 370, SE-107 24 Stockholm
Visitors: World Trade Center, Kungsbron 1, C6, Stockholm
Phone: +46 8-590 010 00, Fax +46 8-590 010 01
info@rottneros.com
www.rottneros.com
