Klippan AB: Year-End Report; Profit After Net Financial Items MSEK 33.2 (25.5); Proposed Dividend SEK 1 Per Share (with link)

STOCKHOLM, Sweden, Feb. 18, 2002 (PRIMEZONE) - Klippan AB's Year-end Report 2001:

 -- Profit after net financial items MSEK 33.2 (25.5)

 -- Successful capital rationalization

 -- New and increased permit for Lessebo Mill

 -- Proposed dividend SEK 1 per share (0)


Operating profit for the group amounted to MSEK 44.9 (40.4) and profit after financial items amounted to MSEK 33.2 (25.5). Return on capital employed was 12.1% (10.7). The result for the previous year included items affecting comparability amounting to MSEK 21.6. This means that the result after net financial items, excluding items affecting comparability, has improved by MSEK 29.3.

The basis for the improved result is the intensive work at keeping costs down. As it has also been possible to maintain the paper price levels, partly with the help of the weak Swedish krona, the contribution ratio has also improved during 2001.

Profit per share

Profit per share after tax amounted to SEK 5.28 (4.13). If items affecting comparability are excluded, the profit per share amounted to SEK 0.65 in 2000. All previous deductible deficiencies have been used in their entirety in these year-end accounts. For 2002, the company's profit per share will be subject to standard tax.

The return on average equity amounted to 17.1%.


The market for fine paper has developed unfavourably during 2001, with a reduction in the European consumption of some 8% both for coated and uncoated paper. A partial reason for the reduction is the general downturn in the trade cycle. This has particularly affected advertising, which in Europe was 12% down on last year.

The order situation for KLIPPAN has, however, improved marginally and the order books now show 2-3 weeks coverage, which should be regarded as satisfactory.


The turnover of MSEK 865.8 fell by MSEK 13.9 or 1.6% compared to last year. The strategy of "placing profitability before volume" has been followed, which has entailed a reduction in volume of just under 10%. An improved product mix and the weak Swedish krona have, however, meant that the turnover as a whole remained unchanged, despite the smaller tonnage.

Deliveries amounted to 90,900 tons, which was 9,500 tons lower than last year. The export percentage was 76% (77).

Changes to equity

Opening equity 01.01.2001 174.8 Translation difference etc. 0.5 Profit for the year 32.7 Closing equity 31.12.2001 208.0


The year's investments in tangible fixed assets amounted to MSEK 15.4 (16.3). Just over MSEK 4 of these relate to measures aimed at improving personal and operational safety in the high voltage plant at the mills. A fiber recycling plant has been installed at Lessebo for environmental reasons.

Liquidity and financing

The group's disposable assets increased by MSEK 20.8 to MSEK 79.1, despite the reduction in the current account overdraft facility by MSEK 30 to MSEK 55.5. At the end of the accounting year 2001, this credit was not being used.

The interest-bearing net liability has reduced during the year by MSEK 43.7 to MSEK 139.1. Solidity amounted to 40.4% (33.3) and the debt/equity ratio to 0.7 times (1.0).

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