Metsä Group’s comparable operating result in January–September 2020 was EUR 274 million

JANUARY–SEPTEMBER 2020 (1–9/2019)
*Sales were EUR 3,698 million (4,183).
*Operating result was EUR 279 million (342). Comparable operating result was EUR 274 million (418).
*Result before taxes was EUR 242 million (298). The comparable result before taxes was EUR 236 million (374).
*Comparable return on capital employed was 7.0% (11.0).
*Cash flow from operations was EUR 419 million (421).

JULY–SEPTEMBER 2020 (7–9/2019)
*Sales were EUR 1,245 million (1,374).
*Operating result was EUR 116 million (110). Comparable operating result was EUR 115 million (110).
*Result before taxes was EUR 103 million (96). The comparable result before taxes was EUR 102 million (96).
*Comparable return on capital employed was 8.8% (8.7).
*Cash flow from operations was EUR 179 million (239).

PRESIDENT AND CEO ILKKA HÄMÄLÄ:
“Metsä Group’s result in the third quarter of 2020 was better than we expected at the beginning of the quarter. Compared with our estimate, the most significant improvement came from the paperboard business, where the sales volumes were higher than expected and prices remained stable. In the pulp business, demand recovered in China during the quarter, and prices also developed favourably in the Asian market. The wood products business was also slightly stronger than expected. As yet, the worsened pandemic situation in Europe has not been reflected in changes in our demand structure compared with the previous quarter, and we were able to maintain normal utilisation rates in our mills during the third quarter.

The Group operates in line with the special operating models adopted in the spring in response to the exceptional circumstances caused by the pandemic. Around 30 COVID-19 infections have been detected among our more than 9,000 employees. There have been no infection chains in workplaces. We have been able to continue our business operations and development projects as planned.

The implementation of maintenance shutdowns started during the third quarter. We postponed the shutdowns scheduled for the first half of the year until the second half, meaning that maintenance shutdowns will be organised in succession at all our pulp and paperboard mills during the third and fourth quarters. During the third quarter, the major maintenance sites were the Kemi and Husum integrated mills, where the work was completed safely in exceptional circumstances, and no COVID-19 infections were detected.

Our development investments are progressing. The Rauma sawmill project has proceeded from earthworks to the construction phase. The installation of equipment will begin early next year. Preparations for the Kemi bioproduct mill continue by means of implementation planning and site preparation. The environmental permit decision is expected to be issued before the end of the year, and the preparation of the investment decision can begin after that. Most of the main equipment purchase agreements have been signed, conditional on the investment decision. The schedule for the recovery boiler investment decision for Husum has been postponed, because the environmental permit process is longer than expected. The permit is expected to be issued by the end of the year.
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