14 Aug 2015 07:00
14 August 2015
Powerflute
Trading Statement
Powerflute Oyj ("Powerflute" or the "Group") today provides an update on trading during the six months to 30 June 2015 and on the outlook for the remainder of the year ending 31 December 2015.
Consistent with the trends described in the Trading Statement provided on 15 May 2015, the Group has performed strongly during the first half of the year in both its Coreboard and Cores and Packaging Papers activities and the outlook for the second half of the year remains positive.
In Coreboard and Cores, market conditions in the US and China remain broadly favourable and the Nordic region continues to perform well. In the more challenging European markets, actions taken during the first half to reposition and restructure certain businesses are already beginning to take effect and should lead to further improvement during the second half. Packaging Papers is expected to enjoy healthy market conditions for the remainder of the year and will also benefit from more favourable hedging of its exposure to the US dollar.
The results for the first half and for the full year will be affected by non-recurring items related to the acquisition and integration of Corenso. However, these items are generally in line with or lower than the estimates previously provided and the integration of Corenso is progressing well.
The second half will be impacted by planned annual maintenance shutdowns in a number of the paper and coreboard mills during which we will complete several complex projects and upgrades that are not without operational risk. However, in the absence of any material production challenges or any significant change in market conditions, we currently expect that the outcome for the full year will be ahead of previous expectations.
The Group will release its interim results for the six months ended 30 June 2015 on Tuesday, 8 September.
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For further information, please contact:
Powerflute Dermot Smurfit (Chairman) Marco Casiraghi (CEO) David Walton (CFO)
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c/o Oliver Winters, FTI Consulting +44 20 3727 1535 |
Numis Securities Mark Lander (Corporate Broking) Andrew Holloway / Jamie Lillywhite (Nominated Advisor)
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+44 20 7260 1000 |
FTI Consulting Oliver Winters Tom Hufton
| +44 20 3727 1535
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About Powerflute
Powerflute is a paper and packaging group quoted on the AIM market of the London Stock Exchange (Ticker: POWR) which seeks to acquire businesses with strong fundamentals whose performance can be improved through a combination of management focus and targeted investment.
The Group currently has two main activities; Packaging Papers which trades under the name Powerflute and operates a paper mill in Kuopio, Finland producing a specialised form of Nordic semi-chemical fluting used in the manufacture of high-performance corrugated board; and Coreboard and Cores, which trades under the name Corenso and is a leading international manufacturer of high performance coreboard and cores, with coreboard mills in the United States and Europe and a network of core producing facilities in Europe, North America and China.
Nordic semi-chemical fluting is made from locally soured birch and boxes manufactured using it demonstrate superior strength and moisture resistance and are used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill is one of only three suppliers of Nordic semi-chemical fluting in Europe.
Cores and coreboard are manufactured from recycled paper and are used for applications in paper, packaging, textiles, steel, aluminium and many other industries. Coreboard and cores produced by Corenso demonstrate superior strength and rigidity and are suitable for use in the most demanding applications.
For further information, please visit www.powerflute.com.