Favourable market conditions and satisfactory results
Borregaard’s operating revenues totalled NOK 1,045 million (NOK 999 million)1 in the 3rd quarter of 2013. EBITA2 amounted to NOK 160 million compared with NOK 171 million in the corresponding quarter of 2012, and NOK 140 million in the preceding quarter.
Performance Chemicals improved its EBITA in the 3rd quarter compared with 2012, while Specialty Cellulose and Other Businesses experienced a decline.
Largely satisfactory market conditions continued to prevail in Borregaard’s key product segments, except for vanillin products. Reduced wood costs and continued strong production output at the Sarpsborg site contributed positively. The positive impact of a weaker NOK in the quarter was delayed due to Borregaard’s currency hedging strategy.
EBITA in Performance Chemicals improved as a more favourable product mix and higher sales prices more than compensated for a 4% sales volume decrease. The decline in Specialty Cellulose was mainly attributable to lower prices in some segments. EBITA in Other Businesses was negatively affected by lower sales in Fine Chemicals and higher corporate costs. Other income and expenses totalled NOK 14 million (NOK -18 million) in the 3rd quarter.
Profit before tax amounted to NOK 167 million (NOK 132 million) in the 3rd quarter of 2013. Net earnings per share were NOK 1.20 (NOK 0.93) in the 3rd quarter.
"Overall, we continued to see favourable market conditions and we had a strong product mix in Performance Chemicals and high sales volumes in Specialty Cellulose. In total we are satisfied with the results achieved in the 3rd quarter of 2013", says President and CEO Per A. Sørlie.
1. Figures in parentheses are for the corresponding period in the previous year
2. Operating profit before amortisation and other income and expenses