Packaging

Billerud: Year-End Report January-December 2010

Tuesday 15. February 2011 - Full-year 2010 compared with the same period in 2009

Net sales amounted to SEK 8 828 million (7 760), an increase of 14%.
Profit for the period amounted to SEK 705 million (165).
Earnings per share amounted to SEK 6.84 (2.04).
Operating profit amounted to SEK 1 037 million (300), corresponding to a margin of 12% (4).
October-December 2010 compared with July-September 2010
Net sales amounted to SEK 2 279 million (2 251), an increase of 1%.
Operating profit amounted to SEK 326 million (276). The 18% increase is mainly attributable to improved prices and improved production efficiency.
The quarter was charged with non-recurring costs of SEK 19 million.
Strong order situation continued in the fourth quarter.
Proposed dividend
The Board of Directors proposes a dividend of SEK 3.50 (0.50) per share for 2010.
Outlook for the full-year 2011
The order situation remain good or very good within most of Billerud’s packaging paper areas, which will enable a continued positive development within Billerud’s packaging paper and packaging paper solutions segments.
Good prospects for additional price increases in local currency for packaging paper which counteract the currency effects of a weaker EUR against SEK.
A weaker USD reduced the operating margin for the Market Pulp business area.
Comments by Billerud’s CEO Per Lindberg:
Billerud reports strengthened position
“I am happy, pleased and impressed by our performance during 2010. We leave 2010 with an operating margin of 15% for our packaging paper in the fourth quarter. For the full-year 2010 the Group achieved, for the first time since our financial targets were set in 2006, an operating margin of 12%, well above our 10% target over a business cycle. Demand for our products showed a very strong increase during the year, and we can see that our focused approach has achieved results.
2010 is a year we can look back at and see that we successfully broke new ground. This is particularly gratifying since our line of approach contradicts a widely held notion in the industry that large-scale operations are the key to success. Instead, I believe that the explanation for success is a strong focus on a single area – in our case selected packaging segments – and being in the forefront in development of material and solutions. I am convinced that Billerud has a strong platform from which to offer products that have environmental sustainability as fundamental properties. We will continue to develop our offering with alternatives to traditional plastic in packaging and can see clear signs that our customers and business environment appreciate the route Billerud has chosen. We approach 2011 with confidence and see good opportunities to continue to develop Billerud and create shareholder value from our strengthened position.”