Good market situation continued in the third quarter


Botnia's sales in January-September increased by more than 60 per cent
year-over-year, amounting to EUR 1,000 million (614). The operating result
excluding non-recurring items totalled EUR 281 million (-125). The considerable
improvement in sales and operating result compared with the previous year came
about from the market picking up and the pulp price rising steeply. Botnia's
sales volumes were up 8 per cent year-over-year. 

Foreign-currency-denominated market prices for softwood pulp were, on average,
48 per cent higher compared with the corresponding period last year. The
average prices of hardwood pulp increased by 60 per cent. Pulp prices decreased
slightly in the third quarter, following the steady rise during the first half
of the year. At the beginning of July, softwood pulp was selling at USD 980 per
tonne and at the end of September, at USD 970 per tonne. The corresponding
figures for hardwood pulp were USD 920 and USD 870. 

The utilisation rate of Botnia's mills in the third quarter was very good. The
Äänekoski and Rauma mills, among others, set new monthly production records in
August. The third-quarter sales were EUR 344 million (Q3/09: 219), and the
operating result excluding non-recurring items was EUR 115 million (Q3/09:
-20). The operating result represented 33 per cent of sales. 

The annual maintenance shutdown of the Kemi plant was carried out in September
with a corresponding shutdown at the Rauma mill in October. 

Botnia has been consolidated in the financial statements of Metsäliitto Group
as a subsidiary from 8 December 2009 onwards. 

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