News

M-real is hoping healthy demand and improved board and liner prices will help maintain improving profits into 2010.

M-real's quarterly operating result excluding non-recurring items (NRI) moved into the firm's first profit of 2009 in the final quarter to EUR 7m (£6.1m). However, the EUR 150m loss for the year was more than triple that of 2008 as sales fell by a quarter.

The firm's consumer packaging division was hit by falling demand in 2009 and sales were down 9% at EUR 968m. However, cost savings and a stronger US dollar helped increase operating profits, excluding NRI, to rise by 138% to EUR 69m.

M-real expects demand for board to remain good during the first quarter of 2010 and said folding boxboard and liner prices were slightly increasing, which should help improve operating results in the first quarter of the year.

Chief executive Mikko Helander said the restructuring to focus on packaging material had proceeded as planned, and hailed a positive operating result in the fourth quarter.

"The gradual recovery of the market situation supports the continuation of our positive profit development, while the divestment of operations in Uruguay significantly improved our balance sheet structure and financial position," he said.

M-REAL 2009 RESULTS
(in euros)

Sales 2.5bn (3.2bn in 2008)
EBITDA 88m (254m)
Operating result (excl. NRI) -150m (-35m)
Pre-tax result (excl. NRI) -230m (-178m)

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