Metsäliitto Group Interim Report January-September 2009
(Thomson Reuters ONE) - Metsäliitto Group Interim Report 1 January-30 September 2009, October22, 2009 at 12.00 a.m.Metsäliitto Group's operating result excluding non-recurring itemsEUR 9 million positive in July-SeptemberOperating result excluding non-recurring items EUR -119 million inJanuary-SeptemberResult for January-September* Sales EUR 3,647 million (1-9/2008: EUR 4,981 million).* Operating result excluding non-recurring items was EUR -119 million (120). Operating result including non-recurring items was EUR -186 million (208).* Result before tax excluding non-recurring items was EUR -232 million (-43). Result before tax including non-recurring items was EUR -310 million (44).Result for July-September* Sales EUR 1,155 million (7-9/2008: EUR 1,595 million).* Operating result excluding non-recurring items was EUR 9 million (27). Operating result including non-recurring items was EUR 7 million (19).* Result before tax excluding non-recurring items was EUR -51 million (-28). Result before tax including non-recurring items was EUR -53 million (-35).Events in the third quarter* Positive signs in the Group's core businesses: The result of M-real's Consumer Packaging business improved significantly - the demand for consumer packaging board increased and the operating rates were at a good level; strong profit development in the tissue paper business continued; the price of pulp increased considerably and its operating rates increased.* Metsäliitto signed a letter of intent with UPM-Kymmene Corporation in July concerning the new ownership structure of Metsä-Botnia.* M-real received a cash payment of EUR 190 million in August from Sappi as an early payment of its vendor notes in connection with the Graphic Papers transaction.Events after the review period* An agreement on the new ownership structure of Metsä-Botnia and the divestment of Metsä-Botnia's operations in Uruguay to UPM-Kymmene Corporation was signed on 22 October 2009."Positive signs can be seen in several of the Group's businessoperations which is reflected in the figures for the quarter.However, the forest industry is dependent on the general economicdevelopment, and therefore it is too early to speak about a clearturn of the market for the better."Kari Jordan, President & CEO, Metsäliitto GroupMetsäliitto Group+-------------------------------------------------------------------+| Income statement | 2009 | 2008 | 2009 | 2008 | 2008 || (Continuing | 1-9 | 1-9 | Q3 | Q3 | 1-12 || operations) | | | | | ||---------------------+--------+---------+--------+--------+--------|| Sales | 3 647 | 4 981 | 1 155 | 1 595 | 6 434 ||---------------------+--------+---------+--------+--------+--------|| Other operating | 115 | 215 | 31 | 43 | 239 || income | | | | | ||---------------------+--------+---------+--------+--------+--------|| Operating | -3 672 | - 4 702 | -1 103 | -1 524 | -6 189 || expenses | | | | | ||---------------------+--------+---------+--------+--------+--------|| Depreciation and | -277 | -286 | -76 | -95 | -482 || impairment losses | | | | | ||---------------------+--------+---------+--------+--------+--------|| Operating result | -186 | 208 | 7 | 19 | 2 ||---------------------+--------+---------+--------+--------+--------|| Share of results | -11 | 11 | -1 | 8 | 6 || in associates | | | | | ||---------------------+--------+---------+--------+--------+--------|| Exchange gains | 1 | 1 | 4 | 0 | 19 || and losses | | | | | ||---------------------+--------+---------+--------+--------+--------|| Other net | -113 | -176 | -63 | -63 | -260 || financial items | | | | | ||---------------------+--------+---------+--------+--------+--------|| Result before | -310 | 44 | -53 | -35 | -233 || income tax | | | | | ||---------------------+--------+---------+--------+--------+--------|| Income tax | 19 | -6 | -6 | 2 | 60 ||---------------------+--------+---------+--------+--------+--------|| Result from | -291 | 39 | -59 | -33 | -172 || continuing | | | | | || operations | | | | | |+-------------------------------------------------------------------+Metsäliitto Group+-------------------------------------------------------------------+| Profitability | 2009 | 2008 | 2009 | 2008 | 2008 || (Continuing operations) | 1-9 | 1-9 | Q3 | Q3 | 1-12 ||--------------------------+-------+-------+-------+-------+--------|| Operating result, EUR | -186 | 208 | 7 | 19 | 2 || mill. | | | | | ||--------------------------+-------+-------+-------+-------+--------|| - " -, excluding | -119 | 120 | 9 | 27 | 45 || non-recurring items | | | | | ||--------------------------+-------+-------+-------+-------+--------|| Return on capital | -4.8 | 6.1 | 1.3 | 2.7 | 0.5 || employed, % | | | | | ||--------------------------+-------+-------+-------+-------+--------|| - " -, excluding | -2.9 | 3.9 | 1.4 | 3.3 | 1.3 || non-recurring items | | | | | ||--------------------------+-------+-------+-------+-------+--------|| Return on equity, % | -25.1 | 2.3 | -17.2 | -6.1 | -8.4 ||--------------------------+-------+-------+-------+-------+--------|| - " -, excluding | -18.3 | -3.0 | -16.6 | -4.7 | -6.4 || non-recurring items | | | | | ||--------------------------+-------+-------+-------+-------+--------|| | | | | | ||--------------------------+-------+-------+-------+-------+--------|| Financial position | 2009 | 2008 | 2009 | 2008 | 2008 || | 30.9. | 30.9. | 30.6. | 30.6. | 31.12. ||--------------------------+-------+-------+-------+-------+--------|| Equity ratio, % | 23.9 | 27.5 | 25.6 | 30.1 | 26.0 ||--------------------------+-------+-------+-------+-------+--------|| Net gearing ratio, % | 180 | 162 | 162 | 147 | 149 ||--------------------------+-------+-------+-------+-------+--------|| Interest-bearing net | 2 363 | 3 373 | 2 348 | 3 421 | 2 666 || liabilities, EUR mill. | | | | | |+-------------------------------------------------------------------++----------------------------------------------------------------------+|Sales and Operating | Wood | Wood |Pulp *) | Board |Tissue ||result |Supply |Products|Industry| and | and ||1-9/2009 | |Industry| | Paper |Cooking||(EUR mill.) | | | |Industry|Papers ||-------------------------+---------+--------+--------+--------+-------||Sales | 809| 613| 898| 1 826| 661||-------------------------+---------+--------+--------+--------+-------|| Other operating income | 6| 4| 22| 86| 5||-------------------------+---------+--------+--------+--------+-------|| Operating expenses | -804| -626| -933| -1 956| -563||-------------------------+---------+--------+--------+--------+-------|| Depreciation & | -3| -29| -149| -171| -31||impairment losses | | | | | ||-------------------------+---------+--------+--------+--------+-------||Operating result | 8| -38| -162| -215| 72||-------------------------+---------+--------+--------+--------+-------|| Non-recurring items | 0| 0| 75| 58| 0||-------------------------+---------+--------+--------+--------+-------||Operating result | | | | | ||excl. non-recurring items| 8| -38| -87| -157| 72|+----------------------------------------------------------------------+*) Represents 100%. The Metsäliitto Group consolidates 53% of thePulp Industry. The figures are unauditedMETSÿLIITTO GROUPINTERIM REPORT 1 JANUARY-30 SEPTEMBER 2009Sales and resultMetsäliitto Group's sales for January-September were EUR 3,647million (4,981).Operating result excluding non-recurring items was EUR -119 million(120). Net non-recurring items amounted to EUR -67 million (88), EUR65 million of which was already recognised during the first half ofthe year. Of the non-recurring costs, EUR 40 million was related tothe closure of the Metsä-Botnia Kaskinen mill, EUR 29 million to theclosure of the M-real Hallein paper mill and EUR 4 million toM-real's ongoing efficiency improvement programmes. A sales gain ofEUR 8 million was recognised for the Vapo deal during the secondquarter. Non-recurring items amounted to EUR -2 million during thethird quarter.The third-quarter operating result excluding non-recurring items wasEUR 9 million positive (Q2/09: EUR -61 million and Q1/09: EUR -67million). The result was improved by, among others, higher deliveryvolumes, increase in the price of sawn timber, decrease in the priceof wood raw material, higher sales price of pulp and implementedcost-savings. The good profit development of the tissue paperbusiness continued during the third quarter.Metsäliitto Group's operating result including non-recurring itemsfor January-September was EUR -186 million (1-9/2008: 208). Financialincome amounted to EUR 28 million (17), results from associates wereEUR -11 million (11) and financial expenses totalled EUR 141 million(193).Net exchange gains/losses recognised in financial items were EUR 1million (1). The US dollar strengthened on average 10% inJanuary-September, the British pound weakened by 13% and the Swedishkrona by 14% year-over-year.Share of results in associated companies include a EUR 11 millionnon-recurring expense item related to the sale of Myllykoski Paper'sSunila shares. In the first quarter, M-real made a market repurchasewith a nominal value of approximately EUR 60 million of its EUR 400million bond, which matures in December 2010. A profit ofapproximately EUR 31 million for the purchase was recognised infinancial income.A loss of approximately EUR 30 million was recognised in financialitems during the third quarter after Sappi Ltd had repaid itsfour-year debt of EUR 220 million early to M-real. The repaymentprice was 86.5% of the nominal value of the vendor notes, orapproximately EUR 190 million.The result before tax was EUR -310 million (44), and taxes, includingchanges in deferred tax liabilities, totalled EUR 19 million (-6).The result for continuing operations was EUR -291 million (39), theresult for discontinued operations EUR -15 million (-276) and theresult for the review period EUR -306 million (-237).Of the period's results, EUR -140 million (-73) was attributable toparent company members and EUR -166 million (-164) to minorityinterests.The Group's return on capital employed for continuing operations was-4.8% (6.1), and the return on equity was -25.1% (2.3). Excludingnon-recurring items, return on capital employed was -2.9% (3.9) andreturn on equity was -18.3% (-3.0).Balance sheet and financingMetsäliitto Group's total liquidity at the end of September was EUR1.7 billion (31 December 2008: 1.8). Of this, EUR 0.5 billion (0.6)was in liquid assets and investments, and EUR 1.2 billion (1.2) wasin off-balance-sheet binding credit facilities. In addition, theGroup can satisfy short-term financial needs with non-bindingcommercial paper schemes in Finland and abroad, as well as withcredit limits amounting to approximately EUR 0.6 billion.The Group's equity ratio in September was 23.9% and net gearingtotalled 180% (31 December 2008: 26.0% and 149%, respectively).Interest-bearing net liabilities stood at EUR 2,363 million (31December 2008: 2,666). The equity ratio of the parent company,Metsäliitto Cooperative, was 55.7% at the end of September and thenet gearing ratio was 44% (31 December 2008: 54.6% and 45%,respectively).EUR 84.7 million of Metsäliitto Cooperative's members' capitalmatured at the beginning of July. Members' capital has decreased byEUR 58.8 million in January-September. The actual members' capitalhas decreased by EUR 0.7 million and the additional capital A by EUR58.9 million. The additional members' capital B has increased by EUR0.8 million. At the end of September, Metsäliitto Cooperative had127,118 members (31 December 2008: 129,267).The change in the fair value of investments available for sale inJanuary-September was approximately EUR -101 million, based mainly onthe decrease in the value of the Pohjolan Voima shares. The change inthe fair value of the shares relates mainly to the decrease of the 12month moving average value of Nord Pool electricity futures used inthe valuation.PersonnelThe Group employed an average of 15,560 people (17,759) duringJanuary-September. At the end of September, the number of personnelin the Group was 14,391 (31 December 2008: 16,729). The parentcompany, Metsäliitto Cooperative, had a headcount of 2,917 at the endof September (31 December 2008: 3,217).InvestmentsMetsäliitto Group's capital expenditure totalled EUR 116 million(190).Business areasWood SupplyWood Supply sales totalled EUR 809 million (1,372) in the reviewperiod and operating result amounted to EUR 8 million (26). Theoperating result does not include non-recurring items (1). WoodSupply Finland accounted for EUR 608 million (936) of the sales andEUR 5 million (21) of the operating result.In Finland, wood trade was exceptionally slack, even though it pickedup slightly towards the end of the period. During January-September,Metsäliitto bought around 40% of the amount purchased in thecorresponding period the year before. The forest industry's overallJanuary-September purchases from privately owned forests totalledapproximately 7.5 million cubic metres (29.4).Metsäliitto's purchases have been emphasised on roundwood and forestenergy. In order to speed up roundwood trade, owner-members were paida double bonus on wood from sales of renewal stands marked forcutting made between the beginning of August and the end ofSeptember.An organisational restructuring of the supply and delivery unit wascarried out in Northern Finland to adjust operations to decreaseddelivery volumes of wood.In the Russian market, the demand for softwood log exceeded thesupply, however, the demand for pulpwood remained low, except forbirch pulpwood. Wood supply at the Metsä-Botnia Svir Timber sawmillwas handled according to plans. Wood supplies from Russia to Finlandremained low.In the Baltic countries, the wood trade of private forest owners wasat a standstill throughout the review period. Most of the wood wasfelled from state-owned forests. Metsäliitto's deliveries to Finlandand Sweden decreased clearly, and the wood supply organisations wereadjusted to match the new volumes.In January-September, Wood Supply's overall delivery volumes toproduction units amounted to 18.3 million cubic metres (26.6).As of the beginning of 2010, Metsäliitto Wood Supply will beorganised into four business lines: Wood Supply Finland,International Wood Supply, Wood Energy and Forestry Services.Wood Products IndustryThe sales of Metsäliitto Wood Products Industry amounted to EUR 613million (923), while the operating result was EUR -38 million (-19).The operating result does not include non-recurring items.The operating result for the third quarter was EUR 3 millionnegative, yet noticeably better than for the previous quarters(Q2/09: EUR -10 million and Q1/09: EUR -25 million). The decrease inthe operating loss is due to a decrease in the price of wood rawmaterial, increase in the price of sawn timber, a revival in thedemand for construction products and the implemented cost-savingprogrammes.During the third quarter, the construction market began to pick upespecially in the UK following government subsidies, low interestrates and revival of the real estate business. The productionrestrictions on sawn goods led to the price of sawn goods increasingat the end of the review period. The market share in light andcold-storage transport fleet could be increased with specialproducts.As part of the development programme related to energy efficientconstruction, Metsäliitto Wood Products Industry launched a newKerto-framed passive roof element and a base plate.Due to the poor availability of competitively priced wood rawmaterial, summer shutdowns were continued at all operationalsawmills. Many sawmills had to restrict production even in September.PulpPulp industry sales were EUR 614 million (929) in January-September,and the operating result excluding non-recurring items amounted toEUR -125 million (72). The non-recurring items recognised in thefirst quarter totalled EUR -75 million and were related to theclosure of the Kaskinen mill. The operating result includingnon-recurring items was EUR -200 million (72).The most significant factors burdening the result were the heavydeterioration of the market situation and the decrease in the priceof pulp compared with the corresponding period the previous year.Foreign currency-denominated market prices for softwood pulp were, onaverage, 29% lower and for hardwood pulp 36% lower. The result wasalso decreased by production curtailment shutdowns at all mills inFinland.Metsä-Botnia's result improved slightly compared to the previousperiod. The operating loss for the third quarter was EUR 20 million,while for the second quarter, operating loss was EUR 53 million.The price of softwood pulp increased from USD 630 in June to USD 730in September, and the price of hardwood pulp increased from USD 500to USD 600.Metsäliitto signed a letter of intent on 15 July 2009 concerning thesale of Metsä-Botnia's operations in Uruguay to UPM-KymmeneCorporation. The companies also agreed that UPM would reduce itsownership in Metsä-Botnia to approximately 17%, with Metsäliittogetting a majority share in the company. The existing cooperationagreements will, for their essential parts, remain in effect withoutchanges even after the completed arrangement, and Metsä-Botnia willcontinue to act as a sales channel for the market pulp of both UPMand M-real.M-real Group's financial statements include 30% of Pulp Industry'sfigures. Of the Pulp Industry's figures, 53% are consolidated intoMetsäliitto Group's financial statements. Once the arrangementaccording to the letter of intent announced in July becomes final,the consolidation method of Metsä-Botnia will change. Metsä-Botniawill become an associate in M-real's consolidated financialstatements and a subsidiary in Metsäliitto's consolidated financialstatements and will consequently be fully consolidated into theMetsäliitto Group's figures. The transaction is expected to be closedlatest during the first quarter of 2010.Metsä-Botnia has processed the operations in Uruguay as discontinuedoperations in accordance with the IFRS 5 standard. The operations inUruguay are not included in the result figures presented above. Theoperations in Uruguay have not been a separate segment in terms ofMetsäliitto Group. Therefore, only the items related to the balancesheet of the operations in Uruguay have been reported as financialassets and liabilities available for sale.Board and PaperThe sales of Board and Paper totalled EUR 1,826 million (2,514), andthe operating result excluding non-recurring items was EUR -157million (16).M-real's net non-recurring items in January-September totalled EUR-58 million (84). Of these, EUR 22 million were related to theclosure of the Metsä-Botnia Kaskinen mill, EUR 28 million to theclosure of the Hallein paper mill and EUR 8 million to various profitimprovement measures and cost provisions.The operating result excluding non-recurring items decreased fromlast year's corresponding period due to the drop in delivery volumesfollowing weaker demand, as well as the decrease in the values ofproduct, wood and pulp inventories. The result was improved by priceincreases and cost savings.The demand for consumer packaging board strengthened during the thirdquarter, and the operating rates were at a good level. In addition,the order volumes of uncoated fine paper improved during the thirdquarter. The demand for speciality papers continues to be below thenormal level, but price level has mainly remained steady.M-real's internal profit improvement programmes have proceededaccording to plans. The implemented streamlining measures anddecreases in production costs during2009 help the company's profitability. The 2009 full-year result hasbeen weighed down by the considerable operational expenses incurredfrom adjusting operations to a smaller scale and making them moreprofitable.The operating result including non-recurring items was EUR -215million (100) in January-September. Net interest and other financialexpenses totalled EUR 59 million (108), results from associates wereEUR -14 million (-1) and net exchange gains/losses recognised asfinancial items were EUR 4 million (2).The financial income of the review period includes a profit of aboutEUR 31 million from repurchases of a EUR 400 million bond due inDecember 2010. A loss of approximately EUR -30 million has beenbooked in the financing expenses due to the premature repayment ofthe bond issued to Sappi. Results from associates include a EUR 11million non-recurring expense item related to the sale of MyllykoskiPaper's Sunila shares.The result before tax was EUR -284 million (-7), earnings per sharewere EUR -0.83 (-0.05) and return on capital employed was -8.5%(4.9). Excluding non-recurring items, the result before taxes was EUR-215 million (-91), earnings per share were EUR -0.64 (-0.31) and thereturn on capital employed was -5.6% (1.3).At the end of September, M-real's equity ratio was 28.5 % and netgearing amounted to 121% (31 December 2008: 30.8% and 90%,respectively). Some of M-real's loan agreements set a 120% limit onthe company's net gearing ratio and a 30% limit on the equity ratio.At the end of September, net gearing calculated as defined in theloan agreements was approximately 94% and the equity ratio about 34%.Tissue and Cooking PapersThe January-September sales of Metsä Tissue, which produces tissueand cooking papers, totalled EUR 661 million (695), and its operatingresult was EUR 72 million (33).Sales were down some five per cent year-over-year. The decrease insales was due to changes in exchange rates (-5%) and lower salesvolumes (-2%). Metsä Tissue's cash flow development and liquidity aregood.The volumes of the company's own brands increased compared to theprevious year. The development of Serla's sales in particularcontinued to be strong. Sales volumes of large-scale consumeroperations improved during the third quarter, which is due, forinstance, to the increased demand for hygiene products along with thespread of the H1N1 virus.Metsä Tissue has invested in three new napkin machines and associatedprinting and packaging lines. The machines can produce bothsingle-colour and high-class patterned napkins. The investment alsoenables increasingly flexible and reliable deliveries.Baking and cooking products will be sold and marketed under the SAGAbrand in the future. In addition a Swan-environmental-labelled toilettissue for sensitive skin, Herbal Sensitive, was launched in Finlandduring the third quarter. A new four-ply Lambi Aloe Vera product withbalm was launched in the Eastern European market.Metsä Tissue has been streamlining its business and organisationduring the autumn by moving from five business lines to three. Afterthe reorganisations, the lines are Consumer, Away-from-Home andBaking & Cooking.Risks and uncertaintiesThe estimates and statements in this interim report are based oncurrent plans and estimates. They involve risks and uncertaintiesthat may cause the results to differ from those expressed in suchstatements. The risks related to the Group's business have beenexplained more extensively in Metsäliitto Group's Annual report for2008.New ownership structure of Metsä-BotniaMetsäliitto and UPM-Kymmene Corporation signed a letter of intent on15 July 2009 concerning the sale of Metsä-Botnia's Uruguayanoperations to UPM. The companies also agreed that UPM would reduceits ownership in Metsä-Botnia to approximately 17%, with Metsäliittogetting a majority share in the company. Among other things, theletter of intent includes Metsäliitto Group's shares in the FrayBentos pulp mill and in Forestal Oriental, a company specialised inthe cultivation of eucalyptus.Following the arrangement, Metsäliitto Cooperative will own about 53%of Metsä-Botnia, M-real around 30% and UPM around 17%. Currently,Metsäliitto Cooperative has a 23%, M-real a 30% and UPM a 47% holdingin Metsä-Botnia.A definitive agreement still requires the Boards of both parties toapprove it, negotiations with financing parties to be concluded andthe competition authorities to give their approval. The transactionis expected to be closed latest during the first quarter of 2010.Metsäliitto, M-real and UPM published stock exchange releases aboutthe letter of intent on 15 July 2009. The Boards of the partiessigned the actual agreement on 22 October 2009. A detailed stockexchange release about the arrangement has been published today.Near-term outlookWood trade is expected to pick up towards the end of the year. InFinland, the demand for logging sites predominated by roundwood,forest energy and thinning areas providing summer harvestingcontinues to be good. The demand for pulpwood will increase,particularly in terms of birch pulpwood.With regard to Wood Products Industry, there are signs of a revivalin the construction market, which is reflected as an increase in thedemand for engineered wood products. Nevertheless, sawn goodsproduction must be restricted if availability of wood raw materialthat is competitive in terms of price is not sufficient. The demandfor plywood is not expected to improve significantly.Globally, pulp stocks remained low during the third quarter, andthere were even local shortages of hardwood pulp. Pulp pricescontinue to increase in October. However, the strong support measuresby the United States and Canada for their own pulp industries arecasting a shadow over the near-term market outlook. This results inreopening of closed mills and offers a competitive advantage.M-real's third quarter was clearly better than the first half of theyear. The fourth quarter is also expected to be noticeably betterthan the first half of the year in terms of profitability. Due to theweak result for the first six months, M-real's operating result for2009 as a whole excluding non-recurring items will remain clearlybelow the year before.The average demand for tissue and cooking papers is expected toremain rather stable. Sales of own brands in particular are expectedto continue to grow. However, raw material prices and transport costsare expected to continue to increase. After the recent years'significant streamlining measures, growth is now pursued from variousdevelopment projects.Metsäliitto Group's operating result excluding non-recurring items inthe third quarter improved significantly compared to the previousquarters of the year. The positive profit development will continue,but mainly for seasonal reasons, the operating result for the fourthquarter is estimated to fall below third-quarter levels. MetsäliittoGroup's 2009 operating result excluding non-recurring items will beclearly weaker than last year.Espoo, 22 October 2009Metsäliitto GroupBoard of DirectorsFurther information:Ilkka Pitkänen, Group CFO, Metsäliitto Group, tel. +358 10 465 4260Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541The figures are unauditedMETSÿLIITTO GROUPCondensed consolidated 2009 2008 2009 2008 2008statement 1-9 1-9 Change Q3 Q3 1-12of comprehensive incomeContinuing operationsSales 3 647 4 981 -1 334 1 155 1 595 6 434Other operating income 115 215 -100 31 43 239Operating expenses -3 672 -4 702 1 030 -1 103 -1 524 -6 189Depreciation and impairment -277 -286 9 -76 -95 -482lossesOperating result -186 208 -394 7 19 2Share of results in -11 11 -23 -1 8 6associated companiesExchange gains and losses 1 1 0 4 0 19Other net financial items -113 -176 63 -63 -63 -260Result before income tax -310 44 -355 -53 -35 -233Income tax 19 -6 25 -6 2 60Result for the periodfrom continuing operations -291 39 -330 -59 -33 -172Discontinued operationsResult from discontinued -15 -276 261 -2 -212 -338operationsResult for the period -306 -237 -69 -61 -245 -511Other comprehensive incomeCash flow hedges 24 -11 35 10 -31 -55Available for sale -101 76 -177 27 5 97financial assetsCurrency translation -25 19 -43 -22 16 13differencesOther items 0 0 0 0 -1 -1Income tax relating tocomponents 23 -16 39 -8 12 -16of other comprehensiveincomeOther comprehensive income,net of tax -78 68 -146 7 1 39Total comprehensive incomefor the period -384 -170 -214 -55 -244 -472Result attributable to:Members of parent company -140 -73 -67 -20 -92 -213Minority interest -166 -164 -2 -41 -153 -297 -306 -237 -69 -61 -245 -511Total comprehensive incomeattributable to:Members of parent companyResult attributable to: -178 -40 -138 -22 -91 -199Minority interest -206 -130 -76 -33 -154 -272 -384 -170 -214 -55 -244 -472UnauditedCondensed consolidated balance sheet 2009 2008 2008 30.9. 30.9. 31.12.ASSETSNon-currentGoodwill 168 219 176Other intangible assets 73 101 88Tangible assets 2 110 3 047 2 958Biological assets 5 95 103Investments in associated companies 101 144 139Available for sale investments 355 443 493Non-current financial assets 10 23 234Deferred tax receivables 70 53 61 2 892 4 125 4 252CurrentInventories 619 1 020 943Accounts receivables and other receivables 800 1 176 1 085Cash and cash equivalents 470 218 619 1 889 2 414 2 647Assets classified as held for sale 722 1 065 -Total assets 5 503 7 605 6 899MEMBERS' FUNDS AND LIABILITIESMembers' fundsMembers' funds 834 1 247 1 104Minority interest 478 837 682 1 312 2 085 1 786Non-current liabilitiesDeferred tax liabilities 258 391 328Post-employment benefit obligations 124 136 131Provisions 82 50 111Borrowings 2 373 2 809 2 854Other liabilities 16 22 26 2 852 3 408 3 449Current liabilitiesCurrent borrowings 327 673 690Accounts payable and other liabilities 776 1 034 974 1 103 1 706 1 664Liabilities classified as held for sale 235 406 -Total liabilities 4 191 5 520 5 113Total members' funds and liabilities 5 503 7 605 6 899UnauditedEquity attributable to members of parent companyChange in Fairmembers' Tran- value Re-funds Mem- Share slation and tained Minor- bers' premium differ- other earn- ityEUR mill. capital account ences reserves ings Total interest TotalMembers' 574 30 -7 148 583 1 328 978 2 306funds1.1.2008Dividends -36 -36 -13 -50paidChange in -5 -5 -5members'capitalChange in 0 0share premiumaccountChange in 0 0fair valuereserveTransfer fromunrestricted 6 -6 0 0to restrictedequityBusiness 0 3 3arrangementsTotalcomprehensive 12 21 -73 -40 -130 -170incomefor theperiodMembers' 570 30 5 175 468 1 247 837 2 085funds30.9.2008Members' 585 30 -5 165 329 1 104 682 1 786funds1.1.2009Dividends -34 -34 -1 -35paidChange in -59 -59 -59members'capitalChange in 0 0share premiumaccountChange in 0 0fair valuereserveTransfer fromunrestricted 0 0to restrictedequityBusiness 2 -2 0 4 4arrangementsTotalcomprehensive -13 -25 -140 -178 -206 -384incomefor theperiodMembers' 526 30 -15 138 155 834 478 1 312funds30.9.2009UnauditedCondensed consolidated cash flow statement 2009 2008 2008 1-9 1-9 1-12Result for the period -306 -237 -511Total adjustments 339 549 832Change in working capital 173 -89 88Cash flow arising from operations 206 223 410Net financial items -9 -150 -239Income taxes paid 6 -57 -58Net cash flow arising from operating activities 204 16 113Investments in tangible andintangible assets -116 -190 -272Divestments of assets and other 346 170 511Net cash flow arising from investing activities 229 -20 239Change in members' funds -59 -2 -1Change in long-term loansand other financial items -438 -146 -101Dividends paid -40 -55 -55Net cash flow arising from financing activities -536 -203 -157Changes in cash and cash equivalents -103 -206 195Cash and cash equivalents at beginning of period 619 428 428Translation difference -1 0 -4Changes in cash and cash equivalents -103 -206 195Cash and cash equivalentsin assets classified as held for sale -45 -3 -Cash and cash equivalents at end of period 470 218 619UnauditedBUSINESS SEGMENTSWood Supply 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 809 1 372 232 412 1 734EBITDA 11 30 0 5 35 - " -, excl. non-recurring items 11 29 0 6 33Depreciation and impairment -3 -4 -1 -1 -5Operating result 8 26 -1 4 30 - " -, excl. non-recurring items 8 25 -1 5 28Investments 1 4 1 1 4Personnel at end of period 951 1 260 951 1 260 1 140Wood Products Industry 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 613 923 188 279 1 162EBITDA -9 13 7 -6 -18 - " -, excl. non-recurring items -9 13 7 -6 -11Depreciation and impairment -29 -32 -10 -11 -57Operating result -38 -19 -3 -16 -74 - " -, excl. non-recurring items -38 -19 -3 -16 -53Investments 7 29 4 13 36Personnel at end of period 3 804 4 298 3 804 4 298 4 199Pulp Industry 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 898 1 232 313 421 1 591EBITDA -13 324 25 136 347 - " -, excl. non-recurring items 5 324 25 136 347Depreciation and impairment -149 -103 -23 -34 -138Operating result -162 221 2 102 209 - " -, excl. non-recurring items -87 221 2 102 209Investments 45 78 26 34 99Personnel at end of period 1 633 1 873 1 633 1 873 1 815The Metsäliitto Group consolidates 53% of the Pulp Industry(M-real 30% and Metsäliitto Cooperative 23%).Board and Paper Industry 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 1 826 2 514 618 826 3 236EBITDA -44 272 27 49 254 - " -, excl. non-recurring items -7 188 26 60 192Depreciation and impairment -171 -172 -50 -57 -315Operating result -215 100 -24 -8 -61 - " -, excl. non-recurring items -157 16 -22 3 -35Investments 55 89 23 38 128Personnel at end of period 5 649 6 679 5 649 6 679 6 546UnauditedTissue and Cooking Papers 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 661 695 226 235 930EBITDA 103 74 42 26 98 - " -, excl. non-recurring items 103 75 42 27 99Depreciation and impairment -31 -42 -11 -13 -56Operating result 72 33 31 13 42 - " -, excl. non-recurring items 72 34 31 14 44Investments 18 17 8 7 33Personnel at end of period 3 216 3 245 3 216 3 245 3 222Other operations 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 167 228 3 60 315EBITDA 22 25 0 8 29 - " -, excl. non-recurring items 22 19 0 3 24Depreciation and impairment -10 -15 0 -5 -20Operating result 13 10 0 3 9 - " -, excl. non-recurring items 13 4 0 -3 4Investments 24 33 1 13 48Personnel at end of period 395 1 292 395 1 292 1 204Other operations include Vapo Group (49,9%) until end of June 2009and Metsäliitto's service and holding functions.Internal salesand eliminations 1-9/09 1-9/08 Q3/09 Q3/08 QI-IV/08Sales -1 327 -1 984 -425 -637 -2 534EBITDA 20 -243 -16 -105 -261 - " -, excl. non-recurring items -1 -242 -16 -105 -259Depreciation and impairment 116 81 18 27 109Operating result 136 -162 2 -78 -152- " -, excl. non-recurring items 71 -161 3 -78 -150Metsäliitto Group 1-9/09 1-9/08 Q3/09 Q3/08 1-12/08Sales 3 647 4 981 1 155 1 595 6 434EBITDA 90 494 83 114 484 - " -, excl. non-recurring items 124 407 84 122 425Depreciation and impairment -277 -286 -76 -95 -482Operating result -186 208 7 19 2 - " -, excl. non-recurring items -119 120 9 27 45Investments 116 190 42 80 272Personnel at end of period 14 391 17 205 14 391 17 205 16 729EBITDA = Operating result before depreciation and impairment losses.UnauditedQuarterly data 2009 2009 2009 2008 2008 2008 2008 Q3 Q2 Q1 Q4 Q3 Q2 Q1Sales Wood Supply 232 251 327 362 412 474 487 Wood Products Industry 188 224 202 239 279 329 315 Pulp Industry 313 282 303 359 421 413 398 Board and Paper Industry 618 585 623 722 826 829 859 Tissue and Cooking Papers 226 217 218 234 235 231 230 Other operations 3 73 90 87 60 77 91 Internal sales and -425 -418 -485 -550 -637 -677 -670eliminationsGroup sales 1 155 1 213 1 278 1 453 1 595 1 676 1 710Operating result Wood Supply -1 4 5 4 4 12 10 Wood Products Industry -3 -10 -25 -55 -16 -1 -2 Pulp Industry 2 -42 -122 -13 102 44 75 Board and Paper Industry -24 -73 -117 -161 -8 71 37 Tissue and Cooking Papers 31 22 19 10 13 11 9 Other operations 0 3 10 -1 3 1 6 Elimineringar 2 40 94 10 -78 -32 -52Group operating result 7 -56 -137 -206 19 105 84 - % of sales 0.6 -4.6 -10.7 -14.2 1.2 6.3 4.9Share of results inassociated companies -1 -8 -2 -6 8 2 2Exchange gains and losses 4 -1 -2 18 0 -2 2Other net financial items -63 -30 -20 -84 -63 -51 -62Result before income tax -53 -95 -163 -277 -35 54 26Income tax -6 7 19 66 2 -1 -7Result for the period fromcontinuing operations -59 -88 -144 -211 -33 53 19Result fromdiscontinued operations -2 -3 -10 -62 -212 -45 -19Result for the period -61 -91 -153 -273 -245 8 0UnauditedChange in tangible assets 1-9/09 1-9/08 1-12/08Book value at beginning of period 2 958 4 021 4 021Company acquisitions 1 4 4Investments 105 180 255Decrease -256 -99 -686Assets classified as held for sale -434 -646 -Depreciation and impairment charges -262 -268 -438 - " - , discontinued operations - -149 -149Translation differences and other changes -2 4 -49Book value at end of period 2 110 3 047 2 958In 2009 Assets classified as held for sale include the tangibleassets of Metsä-Botnia's operations in Uruguay and in 2008 thetangible assets of M-real's Graphic Papers business.In 2008 Depreciation and impairment charges of discontinuedoperations include the depreciation and impairment charges of theGraphic Papers business.Commitments Q3/09 Q3/08 Q4/08On own behalf (incl. leasing liabilities) 344 317 318On behalf of associated companies 5 3 3On behalf of others 6 2 4Total 354 322 325Commitments related to fixed assets Q3/09 Q3/08 Q4/08Payments due under 1 year 8 0 0Payments due in subsequent years 3 1 1Open derivative contracts Q3/09 Q3/08 Q4/08Interest rate derivatives 974 1 527 1 158Currency derivatives 2 010 2 607 2 346Other derivatives 379 253 232Total 3 363 4 387 3 735The market value of open derivative contracts at the end of thereview period was EUR -45 million (12/08: EUR 33 million). Openderivative contracts also include closed contracts to a total amountof EUR 668 million (12/08: EUR 787 million).Accounting policiesThe Financial Statements Bulletin was prepared in accordance with theIAS 34 standard Interim Financial Reporting and the accountingpolicies presented in Metsäliitto Group's Annual Report.The Group has adopted the following standards from the beginning of2009:IAS 1 (Revised), 'Presentation of Financial Statements'. The revisedstandard is aimed at improving users' ability to analyse and comparethe information given in financial statements by separating changesin equity of an entity arising from transactions with owners fromother changes in equity. Non-owner changes in equity are presented inthe statement of comprehensive income.IFRS 8, 'Operating Segments'. The new standard replaces IAS 14. Thenew standard requires a 'management approach', under which segmentinformation is presented on the same basis as that used for internalreporting purposes. The segments reported by the Group as from Jan 1,2009 are Wood Supply, Wood Products Industry, Pulp Industry, Boardand Paper Industry, Tissue and Cooking Papers and Other operations.The figures for the comparative periods have been changed accordingto the new segments.http://hugin.info/137341/R/1349395/325169.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 22.10.2009 - 11:07 Uhr
Sprache: Deutsch
News-ID 7277
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"Metsäliitto Group Interim Report January-September 2009"
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