Brief: Metsa Board Estimates Profit Losses From Strikes Of About EUR 25 Mln

Metsa Board Oyj

25/04/2024 10:15

April 25 (Reuters) - Metsa Board Oyj  METSB.HE :
    * RESULT GUIDANCE FOR APRIL-JUNE 2024: METSÄ BOARD'S
COMPARABLE
OPERATING RESULT IN APRIL-JUNE 2024 IS EXPECTED TO BE WEAKER
THAN IN JANUARY-MARCH 2024
    * WE HAD A POSITIVE START TO 2024, WITH DEMAND FOR FRESH
FIBRE
PAPERBOARDS PICKING UP NOTABLY
    * DEMAND FOR PAPERBOARDS HAS BEEN BOOSTED BY RESTOCKING IN
VALUE
CHAIN AND NORMALISATION OF MARKET BALANCE, ESPECIALLY IN EUROPE
    * WE EXPECT POSITIVE MOMENTUM TO CONTINUE IN COMING MONTHS
    * DUE TO TRADE UNIONS' POLITICAL STRIKES IN MARCH, WE WERE
FORCED
TO STOP PRODUCTION AT ALL OUR FINNISH MILLS, AS RAW MATERIAL
TRANSPORTS TO MILLS WERE HALTED AND PORT CLOSURES PREVENTED
CUSTOMER DELIVERIES
    * NATURALLY, THIS WAS AN UNFORTUNATE SETBACK, AS ORDER
INFLOWS HAD
JUST PICKED UP AFTER PROLONGED WEAK DEMAND
    * WE ESTIMATE THAT STRIKES CAUSED US PROFIT LOSSES OF
ROUGHLY EUR
25 MILLION, AROUND HALF OF WHICH WERE ALLOCATED TO Q1
    * DESPITE STRIKES, OUR JANUARY-MARCH PAPERBOARD DELIVERY
VOLUMES
INCREASED BY A FIFTH FROM PREVIOUS QUARTER, TOTALLING 364,000
TONNES
    * WE ARE CURRENTLY FOCUSING ON MAKING FULL USE OF GROWTH
INVESTMENTS COMPLETED IN HUSUM AND KEMI LAST YEAR
    * NEAR TERM OUTLOOK: GOOD DEMAND FOR FRESH FIBRE PAPERBOARDS
SEEN
IN BEGINNING OF YEAR IS EXPECTED TO CONTINUE IN Q2
    * NEAR TERM OUTLOOK: METSÄ BOARD'S PAPERBOARD DELIVERY
VOLUMES ARE
EXPECTED TO INCREASE SLIGHTLY IN APRIL-JUNE COMPARED PREVIOUS
QUARTER (1-3/2024: 364,000 TONNES)
    * NEAR TERM OUTLOOK: MORE ANNUAL MAINTENANCE SHUTDOWNS WILL
TAKE
PLACE AT MILLS IN APRIL-JUNE COMPARED TO PREVIOUS QUARTER
    * NEAR TERM OUTLOOK: TOTAL COSTS, EXCLUDING PULP COSTS, ARE
EXPECTED TO REMAIN STABLE
    * NEAR TERM OUTLOOK: NEGATIVE RESULT IMPACT CAUSED BY
POLITICAL
STRIKES IN FINLAND IS EXPECTED TO BE ROUGHLY AT SAME LEVEL IN
APRIL-JUNE AS IN JANUARY-MARCH, EUR 10-15 MILLION
    * NEAR TERM OUTLOOK: IN APRIL-JUNE, NEGATIVE RESULT IMPACT
CAUSED
BY GAS EXPLOSION IN KEMI IS EXPECTED TO AMOUNT TO EUR 30-40
MILLION

Source text for Eikon:  ID:nWkrb2f20k 
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