BillerudKorsnäs Integration Proceeding as Planned
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BillerudKorsnäs CEO Per Lindberg this week noted that at the end of the first quarter 2013, the integration of the two Sweden-based companies (Billerud and Korsnäs) is proceeding as planned. "The first full quarter as the new has come to an end and the integration of the two companies is progressing very well. We have therefore increased the target with SEK 200 million for our integration program to approximately SEK 530 million in synergies, savings, and increased efficiency.
"Non-recurring costs for realizing the synergies and savings will increase to approximately SEK 200 million, but are clearly justified given the expected savings. The sales process of PM 2 in Gävle is also progressing according to plan and we expect to be able to fulfill the requirements from EU concerning our acquisition of Korsnäs," Lindberg said.
The company's adjusted operating profit for the quarter of SEK 432 million is in line with expectations given the current environment, according to Lindberg. "The currency situation with a very strong Swedish krona is putting high pressure on our operating profit and the negative impact quarter on quarter is SEK 68 million. Given the strong krona, it is pleasing to see that the integration generates positive savings effects beyond our initial expectations."
The trading situation in the first quarter was somewhat slow but stable, Lindberg noted, pointing out that the market situation varied between the company's business areas, and while Packaging Paper faced a slightly slower than normal market, Consumer Board experienced a more satisfactory and normal market and the Containerboard's market was rebounding and strong. "Overall, we are still waiting for a European pick-up, and as a consequence increasing our sales efforts in emerging markets," Lindberg concluded.
BillerudKorsnäs is a fiber-based packaging paper producer. It has annual sales of some SEK 20 billion.
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