Holmen increase profits - reduces dividend

February 4, 2010 by timbercommunity

The paper manufacturer Holmen reports a profit before tax of 332 million SEK  in the fourth quarter (195) in the interim report. This was slightly better since analysts expected to present a pre-tax profit of 307 million SEK for the fourth quarter,according to a compilation of 13 analysts' forecasts SME Direkt also compared with 195 million the same quarter last year.

The share rose 2.25 after the report was released. Pulp prices have in recent months has reached a historic high (U.S. $ 820/ton) and continues to rise week by week. The staff reduction of 100 persons in progress at Holmen's mills in Braviken expected to have its full impact on the costs towards the end of 2010.

Holmen Year-end Report for 2009
  

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   Profit after tax for 2009 was SEK 1 006 million (2008: SEK 642 million).
   
  
  
  
  
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  Earnings per share were SEK 12.0 (7.6). Return on equity totalled 6.4 per cent (3.9).
   
  
  
  
  
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  The Board proposes a lowered dividend of SEK 7 (9) per share.
   
  
  
  
  
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  Operating profit for 2009 amounted to SEK 1 620 (1 051) million. The result of 2008 included items affecting comparability which totalled cost SEK 361 million. Higher newsprint and paperboard prices improved profit. Weak demand led to considerable production curtailments, which had a negative effect on the result.
   
  In the fourth quarter, operating profit reached SEK 392 million, which was SEK 50 million lower than during the third quarter of 2009. The quarter includes seasonally higher costs as well as provisions and write-downs of SEK 125 million. The earnings trend for all business areas, except for Holmen Paper, was positive.
   
  
  
  
  
  
  
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  Demand was weak in the Group’s product areas during the year. In Europe demand for newsprint fell by 14 per cent and for virgin fibre board by 9 per cent compared to 2008.
  
  
  

 
* The operating profit for full year 2008 includes items affecting comparability of cost SEK 361 million.