Largely satisfactory market conditions
Borregaard’s operating revenues totalled NOK 983 million (NOK 1,036 million)1 in the 2nd quarter of 2013. EBITA2 amounted to NOK 140 million compared with NOK 157 million in the corresponding quarter of 2012, and NOK 111 million in the preceding quarter.
Performance Chemicals and Other Businesses improved their EBITA in the 2nd quarter compared with 2012, while Specialty Cellulose had a decline. Borregaard’s EBITA in the 2nd quarter of 2012 was positively influenced by an inventory revaluation. Largely satisfactory market conditions prevailed in key product segments, except for vanillin products. Reduced wood costs and strong production output at the Sarpsborg Site contributed positively.
EBITA in Performance Chemicals improved as a 10% volume decrease was more than compensated by an improved product mix and higher sales prices. The weaker performance in Specialty Cellulose was attributable to a temporarily weaker product mix and lower prices in some segments. EBITA in Other Businesses advanced due to a strong quarter for Fine Chemicals. As a consequence of the pre-IPO restructuring, Borregaard had a positive one-off effect (inventory revaluation) of NOK 18 million in the 2nd quarter of 2012.
Profit before tax amounted to NOK 126 million (NOK 102 million) in the 2nd quarter of 2013. Net earnings per share were NOK 0.88 (NOK 0.62) in the 2nd quarter.
"We are pleased to see continued positive development in Performance Chemicals and largely satisfactory market conditions for Borregaard's products. Adjusted for one-off effects in 2012, the result is at the same level as the 2nd quarter last year", says President and CEO Per A. Sørlie.
1) Figures in parentheses are for the corresponding period in 2012
2) Operating profit before amortisation and other income and expenses