STOCKHOLM, Sweden, Jan. 31, 2002 (PRIMEZONE) -- Holmen:
Highlights
-- Profit after financial items (excluding items affecting comparability and divested activities) amounted to MSEK 2,914 (2000: 2,194). The corresponding figure for the fourth quarter was MSEK 748, which may be compared with MSEK 857 for the third quarter. A write-down of MSEK 620 in the value of fixed assets was charged against the fourth quarter result, after which the profit after financial items amounts to MSEK 2,294 for 2001 (4,741). -- Net turnover amounted to MSEK 16,655 (15,155). The fourth quarter's net turnover was MSEK 4,343, compared with MSEK 4,099 for the third quarter. -- The operating profit, excluding items affecting comparability and divested activities, was MSEK 3,066 (2,295) for the full year and MSEK 791 for the fourth quarter, compared with MSEK 909 for the third quarter. -- Profit after tax amounted to MSEK 2,186 (3,972). The return on equity was 16.0 per cent (24.1). -- The Board proposes a dividend of SEK 10 per share. Ordinary dividend last year was SEK 9 per share. -- Market conditions for newsprint and magazine paper weakened during the second half of the year. Holmen Paper made some production stops during the fourth quarter due to market conditions. Prices were stable during the year. Prices for 2002 are currently under negotiation. Market conditions for paperboard remained weak in the fourth quarter. Iggesund Paperboard's production continued to be restricted due to market conditions. Prices are stable.
Business Areas
Holmen Paper
Market conditions for newsprint and magazine paper weakened during the second half of the year. The fourth-quarter deliveries of newsprint were 2 per cent higher than in the third quarter. The delivery trend, however, was weaker than normal for the season. Compared with the high delivery levels in 2000, deliveries of standard newsprint to Western Europe in 2001 declined by 3 per cent and of MF Magazine by 2 per cent, while deliveries of SC paper remained unchanged. Deliveries of coated grades declined by 6 per cent.
Holmen Paper's deliveries rose by 1 per cent during the fourth quarter compared with the third quarter, but the order situation has weakened. Capacity utilisation was high during the year, but some production stops were made during the fourth quarter due to market conditions. Prices were stable during the year. Prices for 2002 are currently under negotiation.
The operating result for 2001 amounted to MSEK 2,410 (1,389). The improvement is largely attributable to higher prices, positive currency effects, and a positive result at the Spanish newsprint mill, which was acquired in July 2000.
The fourth-quarter result deteriorated by MSEK 182 to MSEK 568 in relation to the third quarter, largely as a result of seasonally higher costs.
During the first quarter of 2002 there will be a long production stop at the Hallsta Paper Mill for the installation of a new paper machine, which will replace an old machine. This will decrease production and affect the result for the first half of the year.
Quarter Full year Holmen Paper 4-01 3-01 2001 2000 Net turnover MSEK 2,283 2,260 8,757 7,618 Operating profit MSEK 568 750 2,410 1,389 Operating margin % 25 33 28 18 Return on operating 24 32 26 17 capital % Production 1,000 tonnes 387 410 1,586 1,535 Deliveries 1,000 tonnes 394 388 1,525 1,560
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