Metsäliitto Group Interim Report January – June 2006 (27 July 2006)

 

Metsäliitto Group’s operating profit, excluding non-recurring items, was 109 million euro in the first half of the year

Result for the first six months of 2006
• Sales EUR 4 672 million (EUR 4 321 million in 1-6/05). Growth compared with corresponding period last year was 8 per cent.
• Operating profit excluding non-recurring items was EUR 109 million (EUR 24 million in 1-6/2005) and after non-recurring items EUR 71 million (EUR 18 million in 1-6/05).
• Result before tax was EUR -16 million (EUR -131 million in 1-6/05).
Result for second quarter of 2006
• Sales EUR 2 314 million (EUR 2 134 million in Q2/05). Growth compared with corresponding period last year was 8 per cent.
• Operating profit excluding non-recurring items was EUR 27 million (EUR -41 million in Q2/2005) and after non-recurring items EUR -11 million (EUR -56 million in Q2/05).
• Result before tax was EUR -60 million (EUR -149 million in Q2/05).
 
Events in the second quarter
• The Metsäliitto Group’s Paper and Board Industry (M-real) sold the French Pont Sainte Maxence special paper mill. A 35 million euro loss from assignment was booked from the divestment. In addition, investment and maintenance shutdowns, the strike in the Finnish paper industry and non-recurring costs from increasing operational efficiency depressed the result in the second quarter.
• The Pulp Industry's (Metsä-Botnia) Uruguay investment is progressing according to plan. The company received support from the International Court of Justice in The Hague to continue construction work in July.
• The Wood Products Industry’s (Finnforest) result was better than expected. Tissue and Cooking Papers’ (Metsä Tissue) result was in line with expectations.

Kari Jordan, President & CEO, Metsäliitto Group:
”The second quarter proved that construction of the new Metsäliitto Group is progressing according to plan. We can be especially satisfied with the improved performance of the Wood Products Industry. During the rest of the year we must  focus increasingly on improving the profitability of the Paper and Board Industry - that is, M-real.”

For further information, please contact:
Ilkka Pitkänen, Group CFO, Metsäliitto Group, tel. +358 10 469 4260
Lauri Peltola, Group CCO, Metsäliitto Group, tel. +358 50 570 5606