Metsä Board: Demand for folding boxboard weakens in Q3
Paperboard manufacturer Metsä Board has said that orders for its folding boxboard products have slowed down in recent weeks
The Finnish firm said that the global economic slowdown had made its food industry customers cautious.
The news comes as the firm announced its Q3 results. Sales for Q3 were €532m compared to €616m the year before.
Its results before taxes excluding non-recurring items was €10m compared to a loss of €11m in the same period last year.
Orders
Metsä Board said orders for folding boxboard had slowed recently but “the price situation is stable”.
According to Reuters, chief executive Mikko Helander said that orders from food packaging customers may remain slow during the coming months due to the current economic situation.
Helander told a conference call: “We have now some concerns in the food segment especially…in the last weeks (its) order inflows have been about 10% lower than normally.”
In a statement, Helander added: “Paperboard delivery volumes are estimated to be slightly lower in the fourth quarter than in the third quarter, due to seasonal factors.
“Market prices of pulp are expected to increase in the fourth quarter, but it is estimated that the average price of deliveries will be slightly lower than in the third quarter. The overall situation in the global economy is currently uncertain, which makes business forecasting more difficult than in normal conditions.”
Metsä Board, formerly known as M-real, eliminated most of its paper production in the past few years and now focuses on more profitable consumer packaging.
Expansion
Helander said: “Our profitability improved further in the third quarter. Favourable development in the paperboard business continued, and delivery volumes increased as expected. Despite the extensive maintenance shutdown at the Husum mill, the operating result of the paper and pulp business remained at the second quarter level.
“We completed the paperboard business area’s investment programme as planned with the inauguration of the biopower plant at the Kyro mill. Our production machinery is now top class in the world, and our folding boxboard capacity, which was expanded by 150,000 annual tonnes, will be fully available from the beginning of 2013. New capacity is necessary in order for us to ensure the availability of board for our customers in all situations.”
Metsä Board Q3 results
Q3 2012 Q3 2011
Sales €532m €616m
Results before taxes excl. non-recurring items €10m (€11)m
