Norske Skog, First quarter 2012: Lower costs and debt
(Thomson Reuters ONE) -
Lower costs strengthened Norske Skog's gross operating earnings in the first
quarter compared with the same quarter last year, while debt was significantly
reduced.
Gross operating earnings in the first quarter were NOK 380 million, up from NOK
296 million in the same period last year, mainly as a result of lower costs.
Earnings were somewhat weaker compared with the last quarter of 2011, due to
seasonal effects.
- We have received little help from the market. We have partly compensated for
this through strong cost control, says President and CEO in Norske Skog, Sven
Ombudstvedt.
Cash flow from operating activities was NOK 267 million and improved
significantly from the same quarter last year when it was negative NOK 239
million. Net interest-bearing debt was reduced from NOK 7.9 to 7.1 billion
during the quarter, mainly as a result of cash flow from operations and asset
sales.
- In two years, we have cut debt by NOK 2.4 billion or 25%. Risk has been
reduced, and the financial room for manoeuvre has clearly been improved, says
Ombudstvedt.
Key figures first quarter 2012 (NOK million)
+---------------------------------------------+---------+---------+---------+
| | Q1 2012 | Q4 2011 | Q1 2011 |
+---------------------------------------------+---------+---------+---------+
| Operating revenue | 4 411 | 4 970 | 4 594 |
+---------------------------------------------+---------+---------+---------+
| Gross operating earnings (EBITDA) | 380 | 503 | 296 |
+---------------------------------------------+---------+---------+---------+
| Gross operating margin (%) | 8,6 | 10,1 | 6,4 |
+---------------------------------------------+---------+---------+---------+
| Gross operating earnings after depreciation | 129 | 137 | -136 |
+---------------------------------------------+---------+---------+---------+
| Restructuring expenses | -11 | -361 | 0 |
+---------------------------------------------+---------+---------+---------+
| Other gains and losses | -670 | -532 | 369 |
+---------------------------------------------+---------+---------+---------+
| Impairments | -35 | -86 | -8 |
+---------------------------------------------+---------+---------+---------+
| Operating earnings | -587 | -841 | 225 |
+---------------------------------------------+---------+---------+---------+
| Share of profit in associated companies | 8 | 203 | -1 |
+---------------------------------------------+---------+---------+---------+
| Financial items | 109 | -358 | 46 |
+---------------------------------------------+---------+---------+---------+
| Income taxes | 128 | 404 | -101 |
+---------------------------------------------+---------+---------+---------+
| Profit/loss for the period | -343 | -592 | 169 |
+---------------------------------------------+---------+---------+---------+
| Net cash flow from operating activities | 267 | 409 | -239 |
+---------------------------------------------+---------+---------+---------+
The loss after tax was NOK 343 million, compared with a profit of NOK 169
million in the same quarter last year.
During the quarter, Norske Skog has sold the Follum industrial area at Høneføss,
the mill Norske Skog Bio Bio in Chile, and excess energy which has arisen as a
result of reduced production capacity. Other gains and losses show the reduced
value of energy contracts in the balance sheet as a result of lower electricity
prices in the Nordic region.
Operating revenue was NOK 4 411 million, compared to NOK 4 594 million in the
same quarter last year.
A stable price environment is expected for the rest of the year. Volumes will be
lower than last year with weak economic conditions and a fall in demand,
especially in Australia. This will in part be offset through lower capacity in
the group and in the general market. Prices for input factors are expected to be
slightly lower than last year and the efforts to reduce fixed costs will
continue.
Presentation and telephone conference
Norske Skog will hold a presentation at DNB's premises at Aker Brygge in Oslo
today at 08.30 CET. The presentation will be transmitted directly via a link on
Norske Skog's home page www.norskeskog.com. A recording of the presentation will
also be posted afterwards. An international telephone conference will be held at
13.00 CET, which will be open for questions from the financial market. The
President and CEO, Sven Ombudstvedt, and other members of corporate management
will participate in both these events.
Telephone numbers:
800 56053 (Free phone Norway)
0800 279 4841 (Free phone UK)
1877 249 9037 (Free phone USA)
+44 (0)20 7784 1036 (International)
Code: 2644671
Oxenøen, 3 May 2012
Norske Skog
Corporate communication and corporate affairs
For further information:
Media: Financial markets:
Vice President Communication Vice President Investor Relations
Carsten Dybevig Tom Rogn
Mob: +47 917 63 117 Mob: +47 948 55 659
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q1 2012 Norske Skog quarterly report:
http://hugin.info/105/R/1608238/510356.pdf
Q1 2012 Norske Skog press release :
http://hugin.info/105/R/1608238/510384.pdf
Q1 2012 Norske Skog presentation:
http://hugin.info/105/R/1608238/510357.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norske Skog via Thomson Reuters ONE
[HUG#1608238]
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