NEWS

(01/31/2014 / sha)

BillerudKornäs: Results impacted by production problems

BillerudKorsnäs fourth quarter results are stable, but negatively impacted by unexpected production problems. The problems have primarily included two longer unplanned stops at the Frövi mill and a quality related problem in Gruvön, with a total impact on the results of approximately SEK 70 million (EUR 8 million).

Toward the end of the fourth quarter, the company has had longer stops in Frövi on two occasions caused by defects in steam generation and distribution. The repairs were extensive and complex resulting in further loss of time and thus production. The negative impact on operating profit is expected to amount to approximately SEK 40 million. Also, during the end of quarter a quality problem was detected at Gruvön. The problem is solved by preventive measures in the process by investments and improved quality procedures. The negative impact on operating profit is expected to amount to approximately SEK 30 million.

"Production at the end of the year has not really gone our way. Production is now in full swing again and we are completely comfortable with the actions taken. These issues do not affect our view of the future as the underlying business is stable”, says Per Lindberg, President & CEO.