Rising costs squeeze Metsä Tissue's profit
May 4 2011 Metsä Tissue posted net sales of 241 million Euros for January-March, yet operating profit dropped to seven million Euros from 19 million the corresponding period last year.
Net sales showed a year-on-year increase of roughly seven percent on the corresponding period last year. Growth in net sales was largely attributable to a favourable price level and sales mix as well as advantageous exchange rates. Sales of Metsä Tissue’s own brands showed a year-on-year increase of 13 percent.Operating profit was dampened by the rising cost of pulp, recovered fiber, other raw materials and energy. Rising transport costs likewise ate away profits.