26 April 2012
Upturn in market with positive outlook
CEO Per Lindberg comments on the development during Q1
2012:
"The order situation has improved in our packaging paper
segments and is now at a normal level. However, our sales of
SEK 2 291 million and operating margin of 6% reflect a low
level of prices. In local currency, prices for packaging
paper fell by around 2% in the first quarter, as a result of
pressure on prices during the previous quarter. We are today
announcing an increase of EUR 80 per tonne in the prices of
our sack and kraft paper, with effect from 1
June.
As we disclosed earlier, we reached agreement with
UPM-Kymmene on 1 February concerning the acquisition of its
packaging paper operations in Pietarsaari and Tervasaari, at
a cost of EUR 130 million. The acquisition will complement
our current product offering and enable us to develop and
strengthen our offering in renewable, smarter packaging.
Through the acquisition, we will also reduce our pulp
exposure, in turn bringing down the volatility in our
results. It also enables us to expand our EUR cost base. We
are anticipating net annual synergies amounting to SEK 30
million, and that earnings per share will rise once the
effects of the synergies are achieved. It is anticipated that
the take-over of the acquired business will be completed in
the second quarter."
Solna, 26 April 2012
Billerud Aktiebolag (publ)
Per Lindberg
President and CEO
For further information please contact:
Per Lindberg, President and CEO, +46 8 553 335 01 or +46 70 248 15 17
Susanne Lithander, CFO, +46 8 553 335 07 or +46 73 037 08 74
The information is such that Billerud Aktiebolag (publ) is obligated to publish under the Swedish Securities Market
Act. Submitted for publication at 07.47 CET on 26 April 2012.
Billerud - "The Natural Part in Smarter Packaging". Packaging manufacturers and brand owners are offered added
value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. Billerud has a world-leading market position within primary fibre-based packaging paper. Billerud has annual sales of around SEK 9 000 million and is listed on NASDAQ OMX Stockholm. www.billerud.com
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