Strong product mix, higher volume and lower costs
Borregaard's operating revenues totalled NOK 972 million in the 1st quarter of 2013, compared to NOK 981 million in the corresponding period of 2012. EBITA(1) amounted to NOK 111 million, compared to NOK 127 million in the 1st quarter of 2012, but is notably up from the preceding quarter.
Both Performance Chemicals and Specialty Cellulose improved their performance in the 1st quarter compared to 2012, whereas the moderately lower result for Borregaard is mainly due to a decline in Other Businesses. Overall, favourable market conditions prevailed, except for the challenging market situation for vanillin products. Reduced wood costs and high production at the Sarpsborg Site contributed positively.
EBITA in Performance Chemicals improved as an 8 per cent volume decrease was more than compensated by an improved product mix and higher sales prices. Progress in Specialty Cellulose was attributable to higher volume and lower costs. EBITA in Other Businesses receded as a result of uneven delivery patterns within Fine Chemicals and price pressure within Ingredients. The negative impact of a stronger NOK compared to the 1st quarter of 2012 was off-set by higher gains from currency hedging.
Group profit before tax amounted to NOK 97 million, compared to NOK 113 million in the 1st quarter of 2012. Net earnings per share were NOK 0.65, compared to NOK 0.79 in the 1st quarter of 2012.
"We are pleased to see a strong product mix improvement for Performance Chemicals as well as higher volumes and lower costs within Specialty Cellulose. This has contributed to a satisfactory overall result level", says President and CEO Per A. Sørlie.