Metsäliitto financial statements bulletin 2005

 

Metsäliitto Group sales total EUR 8,643 million

Labour conflict and non-recurring items behind EUR -159 million loss

Result for 2005
Sales EUR 8,643 million (8,598 million in 2004)
Operating profit EUR 50 million (144 million)
Result before taxes EUR -159 million (-76 million)

Result for last quarter of 2005
Sales EUR 2,265 million (2,136 million in 9-12/2004)
Operating loss EUR -13 million (a profit of 4 million)
Result before taxes EUR -42 million (-45 million)

Labour conflict and non-recurring items burden profitability by EUR 180 million
The six-week labour conflict affected the Group’s result by placing an additional burden of EUR 120 million on it. Non-recurring items totalled EUR 60 million. 
M-real’s efficiency-enhancement programme is proceeding as planned. The labour dispute and non-recurring items caused a EUR -114 million loss.
The first phase of merging Finnforest with the parent-cooperative is expected to bring annual savings of about EUR 10 million in the support functions. 
Metsä-Botnia and Metsä Tissue performed according to expectations when the effects of the labour conflict are taken into account.
“The largest single factor behind Metsäliitto Group’s unprofitable performance in 2005 was the record-length labour dispute in the forest industry, but the result was also unsatisfactory for other reasons. We must complement the efficiency-enhancement measures underway in the subsidiaries with a comprehensive effort to continuously improve profitability and efficiency. We must act cost-effectively and as a coherent Group, and it is my belief that this will result in the kind of profitability in which we can all take pride.”
President & CEO Kari Jordan

Additional information:
Mr. Lauri Peltola, Group CCO, Metsäliitto, tel. +358 50570 5606
Mr. Ilkka Pitkänen, Group CFO, Metsäliitto, tel. +358 1046 94260