Metsä Board Corporation Stock exchange release 13.12.2018 at 9:40 EET
Metsä Board lowers its result guidance for the fourth quarter of 2018, which guidance was announced in Metsä Board's Interim report for January–September 2018.
The previous guidance was: Metsä Board's comparable operating result in the fourth quarter of 2018 is expected to improve compared to the third quarter of 2018. Metsä Board's comparable operating result in the third quarter of 2018 was EUR 63.7 million.
The new guidance is: Metsä Board's comparable operating result in the fourth quarter of 2018 is expected to remain roughly at the same level as in the third quarter of 2018.
Uncertainty in the pulp market especially in China weakens the operating result for the fourth quarter compared to initial expectations. In October–November the delivery volumes in China have been lower than estimated and sales prices have declined in the past weeks. Global demand for market pulp is however expected to remain good in the near future. The good demand outlook for pulp is based on growing global demand for fiber based products, limited amount of new capacity and restrictions on the imports of recovered paper to China.
In addition, the operating result for the fourth quarter is weakened by late November production disruptions caused by a machinery breakdown at the Husum pulp mill in Sweden. In an integrated mill, disruptions at the pulp mill negatively affect paperboard production. Due to the machinery breakdown, the production volumes of paperboard and pulp at the Husum integrate will be lower than estimated in the fourth quarter. In addition, repairing the machinery generated costs. The reparation work has been completed and production at Husum integrated mill is back to normal.
The market situation in paperboards continues to correspond to expectations.
Metsä Board is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white kraftliners. Our lightweight paperboards are developed to provide better, safer and more sustainable solutions for consumer goods as well as retail-ready and food service applications. We work together with our customers on a global scale to innovate solutions for better consumer experiences with less environmental impact. The pure fresh fibres Metsä Board uses are a renewable resource, traceable to origin in sustainably managed northern forests.The global sales network of Metsä Board supports customers worldwide, including brand owners, retailers, converters and merchants. In 2017, the company's sales totalled EUR 1.8 billion, and it has approximately 2,350 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki.
Source: Metsä Board