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"Production improved during the quarter and I anticipate production to reach target run rate at the end of the second quarter." – Per Lindberg, CEO, BillerudKorsnäs.
April 21, 2016 - BillerudKorsnäs CEO Per Lindberg made the following comments about the company's first quarter 2016 operational results:
“We have again had a tough quarter with production lower than expected, due to last year's rebuilds. Production improved during the quarter and I anticipate production to reach target run rate at the end of the second quarter. Even if we did not reach our own growth expectations I still think we deliver a solid and satisfactory financial result. Our markets continue to be stable and we expect that growth will materialise as production stabilises.”
MARKET OUTLOOK
The overall market has been stable and we expect this to continue with normal demand patterns.
Business area Packaging Paper experienced, as anticipated, a lower than normal brown sack market with lower prices in local currencies. Also the pulp price was down compared to Q1 last year. The remaining segments in Packaging Paper saw a stable market development with stable pricing with slight increases on MG paper.
For the first quarter Consumer Board did not manage to deliver sales volume growth. This is due to the problems in production in the fourth quarter. But we expect growth rates to start pick-up again in the second half of the year as the market has not changed and our production stabilises. In spite of the production problems during the quarter and the associated tight delivery situation the business area has managed to deliver a solid profit in line with previous year.
Business area Corrugated Solutions shows a continued strong performance. Corrugated markets continued to be stable during the quarter and our solution sales continued to grow successfully and take on-board new business.
BillerudKorsnäs is a world-leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, and containerboard (fluting and liner). The company also produces market pulp. To learn more, please visit: www.billerudkorsnas.com.