Rottneros' half year results down year-on-year


Rottneros' financial results in the first half of the year are still significantly behind those posted in the same period of 2011. However, the company managed to emerge from the red in the second quarter.

Rottneros' half year results have decreased compared to the same period of last year. With sales amounting to SEK749m, the pulp manufacturer booked an operating profit of SEK32m and a net profit of SEK23m in the first six months of the year. Both figures were down by around 43 % compared to those of the first half year 2011.

However, CEO Ole Terland was satisfied with the financial development. In the second quarter of the year, the company managed to emerge from the red and posted a net profit of SEK27m. After a net loss of SEK4m in the first quarter, Rottneros was thus able to reach the levels of the second quarter of 2011 again when profits amounted to SEK26m.

Mr Terland said that pulp prices in the second quarter were almost SEK500/t lower than one year before which negatively impacted results. Better productivity and reduced costs compensated for this factor, however. Rottneros reported that its Vallvik mill set a new record in terms of production. The site with an output of 220,000 tpy of softwood pulp produced 20,000 t in June. "This demonstrates that the factory is able to handle 242,000 tpy of pulp", commented Mr Terland. The company is currently waiting for an environmental permit to increase its volumes at the mill from this year until 2014.

Thanks to factors including reduced consumption of chemicals and energy, Rottneros was also able to reduce costs in the second quarter. The company's operating costs dropped from SEK427m to SEK376m year-on-year in the second quarter and from SEK850m to SEK752m year-on-year in the fist half year.

Rottneros announced at the end of May that it would close down groundwood pulp production at its Rottneros mill. The company explained that consumption of printing paper was declining in Europe and demand for fine groundwood pulp therefore continued to dwindle. Production is scheduled to cease in March 2013.

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