Norske Skog, Second quarter 2012: Lower debt and stable margins
(Thomson Reuters ONE) -
Higher capital utilisation and lower costs strengthen Norske Skog's gross
operating earnings in the second quarter compared with the same quarter last
year.
Gross operating earnings in the second quarter were NOK 393 million, up from NOK
248 million in the same period last year, mainly due to lower costs and better
capacity utilisation. The result is on the same level as the first quarter of
2012, despite the closure of production at Follum and the sale of Bio Bio in
Chile.
- Despite challenging markets, we have had better capacity utilisation,
significant cost reductions and a significant reduction in debt so far this
year, says President and CEO in Norske Skog, Sven Ombudstvedt.
Cash flow from operating activities (before financial items) was NOK 423
million, a significant improvement from the same quarter last year, where cash
flow was NOK 295 million. Net interest-bearing debt decreased during the quarter
from NOK 7.1 billion to
NOK 6.9 billion, and has decreased by NOK 1.0 billion so far this year, mainly
as a result of cash flow from operating activities and asset sales.
- Our financial room for manoeuvre is clearly improved over the last two years,
as debt has been cut by over 30% or around NOK 3 billion, says Ombudstvedt.
Key figures second quarter 2012 (NOK million)
+------------------------------------------------------+-------+-------+-------+
| |Q2 2011|Q1 2012|Q2 2012|
+------------------------------------------------------+-------+-------+-------+
|Operating revenue | 4 542| 4 411| 4 377|
+------------------------------------------------------+-------+-------+-------+
|Gross operating earnings (EBITDA) | 248| 380| 393|
+------------------------------------------------------+-------+-------+-------+
|Gross operating margin (%) | 5.5| 8.6| 9.0|
+------------------------------------------------------+-------+-------+-------+
|Gross operating earnings after depreciation | -184| 129| 164|
+------------------------------------------------------+-------+-------+-------+
|Restructuring expenses | -23| -11| 0|
+------------------------------------------------------+-------+-------+-------+
|Other gains and losses | 5| -670| -46|
+------------------------------------------------------+-------+-------+-------+
|Impairments | 0| -35| 0|
+------------------------------------------------------+-------+-------+-------+
|Operating earnings | -202| -587| 118|
+------------------------------------------------------+-------+-------+-------+
|Share of profit in associated companies | -3| 8| 0|
+------------------------------------------------------+-------+-------+-------+
|Financial items | -67| 109| -242|
+------------------------------------------------------+-------+-------+-------+
|Income taxes | -9| 128| 34|
+------------------------------------------------------+-------+-------+-------+
|Profit/loss for the period | -280| -343| -91|
+------------------------------------------------------+-------+-------+-------+
| | | | |
|Net cash flow from operating activities (before | | | |
|financial items) | 295| 357| 423|
+------------------------------------------------------+-------+-------+-------+
The loss after tax was NOK 91 million, compared with a loss of NOK 280 million
in the same quarter last year. Operating revenue was NOK 4 377 million, compared
with NOK 4 542 in the same quarter last year.
Sales of the Follum industrial area in Hønefoss and Norske Skog's mill at Bio
Bio in Chile were completed during the quarter. After quarter end, an agreement
has been entered into with H2 Equity Partners (Netherlands) for the sale of the
mill at Parenco in Renkum, Netherlands. The transaction will have little
operational impact on the rest of Norske Skog. The sale will be finalized and
recognised in Norske Skog's financial statements in the third quarter of 2012.
Despite the economic downturn in Europe, margins in the second half of the year
are expected to be in line with the first half. Norske Skog expects somewhat
higher sales volumes in the second half as a result of seasonal variations, but
the group will actively adjust production capacity to match market demand.
Efforts to reduce fixed costs and net interest-bearing debt will continue.
Presentation and telephone conference
Norske Skog will hold a presentation in SEB's premises at Aker Brygge today at
08:30 CET. The presentation will be transmitted directly via a link on Norske
Skog's homepage www.norskeskog.com. A recording of the presentation will also be
posted afterwards. An international telephone conference will be held at 13:00
CET, which will be open for questions from the financial market. The President
and CEO, Sven Ombudstvedt, and other members of corporate management will
participate in both these events.
Telephone numbers:
800 56054 (Free phone Norway)
0800 279 4841 (Free phone UK)
1877 249 9037 (Free phone USA)
+44 (0)20 7138 0813 (International)
Code: 3084228
Norske Skog
Corporate communication and corporate affairs
For further information:
Media: Financial markets:
Vice President Communication
Vice President Investor Relations
Carsten Dybevig Tom Rogn
Mob: 917 63 117 Mob: 948 55 659
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q2 2012 Norske Skog quarterly report:
http://hugin.info/105/R/1631290/522937.pdf
Q2 2012 Norske Skog presentation:
http://hugin.info/105/R/1631290/522940.pdf
Q2 2012 Norske Skog press release:
http://hugin.info/105/R/1631290/522939.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norske Skog via Thomson Reuters ONE
[HUG#1631290]
Unternehmensinformation / Kurzprofil:
Datum: 02.08.2012 - 07:01 Uhr
Sprache: Deutsch
News-ID 170992
Anzahl Zeichen: 7562
contact information:
Town:
Lysaker
Kategorie:
Business News
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