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Myllykoski reports operating loss

Nov 9 2010  Myllykoski reports an operating loss of -15 million Euros for the first three quarters of 2010, compared to an operating profit of 37 million Euros the corresponding period last year.

Net sales by Myllykoski in January-September totalled 815 million Euros. Net sales in the corresponding period of 2009 totalled 918 million Euros, including sale of the Utzenstorf mill, which was sold in June 2009, and of the Alsip mill, which was sold in November 2010. Operating loss for the nine month-period was -15 million Euros. The operating profit for the first nine months of 2009 was 37 million. Low paper prices and high fiber costs further decreased the profitability.Total deliveries in January-September amounted to 1,348,000 tons, which is four percent lower than in the corresponding period last year. Demand for publication paper remained favourable in the third quarter, and operating rates were high. Publication paper prices increased slightly.Myllykoski's refinancing negotiations continued during the autumn. On 28 September Myllykoski confirmed, as Papernet had reported, that it was engaged in negotiations with UPM regarding structural arrangements. These discussions were to continue.

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