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Billerud's profit up from previous quarter but down from year ago

April 26 2012  Billerud reports an operating profit in the first quarter of 2012 of 142 million Kronor, up 67 million on the previous quarter, but down 57 percent from year ago.

Billerud's net sales in the first quarter amounted to 2,291 million Kronor, compared with 2,086 million in the previous quarter. The operating profit totalled 142 million Kronor. The increase arises mainly from the absence of maintenance or market-related production shutdowns, leading to higher volumes and lower fixed costs.Results for the quarter were charged with acquisition-related non-recurring costs of 14 million Kronor. Adjusted for these non-recurring costs, operating profit totalled 156 million Kronor.“The order situation has improved in our packaging paper segments and is now at a normal level. However, our sales of 2,291 million Kronor and operating margin of six percent reflect a low level of prices,” said Per Lindberg, CEO of Billerud.”In local currency, prices for packaging paper fell by around two percent in the first quarter, as a result of pressure on prices during the previous quarter. We are today announcing an increase of 80 Euros per ton in the prices of our sack and kraft paper, with effect from 1 June,” Lindberg said.

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