Product category:
Printing Substrates - Paper, Forms and Stationery
News Release from: M-real
Edited by the Printingtalk Editorial
Team on 05 May 2004
M-real's First Quarter Climbs Into Black
In the first quarter of 2004 M-real Group's operating result rose to 0.8 million Euros from a loss of 18.4 million Euros in the previous quarter (excluding non-recurring items).
In the first quarter of 2004 M-real Group's operating result rose to 0.8 million Euros from a loss of 18.4 million Euros in the previous quarter (excluding non-recurring items) The company announced that the operating result was improved mainly by the seasonal growth in the volume of paperboard and paper deliveries and it was weakened by the lower price of fine paper as well as the divestment of Metsa Tissue in January
This article was originally published on Printingtalk on 24 Jun 2004 at 8.00am (UK)
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The depreciation of the US dollar depressed the Euro-denominated selling price of both paperboard and paper, said M-real.
The results before extraordinary items showed a loss of 28.3 million Euros (a loss of 47.2 million excluding non-recurring items).
The company said that an improvement in the profitability of the cartons business was due mainly to a seasonal increase in the delivery volume and to the cost savings that had been realised.
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The profitability of the graphics products and speciality papers business was improved above all by the seasonal increase in the delivery volume of coated fine paper and speciality paper.
The profitability of the offices business was weakened by the fall in the average selling price.
In the Map paper merchanting business, earnings were improved by the lower costs resulting from efficiency boosting.
Prices of coated fine paper and coated magazine paper remained on average at the level of the turn of the year.
In the last quarter of 2003 as well as in March 2004, M-real announced price increases of five per cent - seven per cent in coated fine papers in Europe, Middle East and Asia.
"The first agreements at the new prices have been made with customers, but it is still too early to say what the final size of the price increases will be.
Since delivery volumes are also up, we consider this a sign of a nascent revival," said M-real president and chief executive officer Jouko M.
Jaakkola, commenting on the price increases.
"Demand for our main products is expected to grow as the European economy rebounds, but second-quarter demand is nevertheless expected to be seasonally slightly lower than it was in the first quarter.
No major change is foreseen in the average price of paper and folding boxboard in the second quarter.
Second-quarter profit before extraordinary items is estimated to be lower compared to the first quarter.
The 200 million Euro cost-savings programme that was announced at the turn of the year is progressing according to plan," said Jaakkola, commenting on the short-term outlook.
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