SOLNA, Sweden--(BUSINESS WIRE)--Regulatory News:
BillerudKorsnäs (STO:BILL) fourth quarter results are stable, but negatively impacted by unexpected production problems. The problems have primarily included two longer unplanned stops at the Frövi mill and a quality related problem in Gruvön, with a total impact on the results of approximately SEK 70 million. Operating profit for the fourth quarter of 2013 will amount to approximately SEK 195 million. Non-recurring integration costs are estimated to approximately SEK 30 million and the operating profit adjusted for integration costs is estimated to approximately SEK 225 million."
Production at the end of the year has not really gone our way. We have suffered from some unusual incidents, and it is without doubt exceptional that these problems could occur during the same quarter. Production is now in full swing again and we are completely comfortable with the actions taken. These issues do not affect our view of the future as the underlying business is stable. We are building a company to deliver value to customers and shareholders for a long time to come”, says Per Lindberg, President & CEO.
Toward the end of the fourth quarter, the company has had longer stops in Frövi on two occasions caused by defects in steam generation and distribution. The repairs were extensive and complex resulting in further loss of time and thus production. The negative impact on operating profit is expected to amount to approximately SEK 40 million.
Also, during the end of quarter a quality problem was detected at Gruvön. The problem is solved by preventive measures in the process by investments and improved quality procedures. The negative impact on operating profit is expected to amount to approximately SEK 30 million.
The results are still preliminary and have not been reviewed by the auditors.
BillerudKorsnäs will publish its year-end report for 2013, on February 18, 2014 at 07:00 CET.
The information in this press release is such that BillerudKorsnäs AB (publ) is obliged to disclose under the Swedish Securities Market Act and was submitted for publication at 08:00 CET on 21 January 2014. This release has been prepared in both a Swedish and an English version
BillerudKorsnäs provides high quality paper and state of the art packaging expertise. Together with our global network of converters we develop smarter packaging solutions that save costs, boost brands thanks to improved design, and contribute towards smoother logistics and a cleaner environment. We have a turnover of SEK20 billion and employ 4,400 people in 13 countries.’www.billerudkorsnas.com
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