The Rottneros Group www.rottneros.se is anticipating a considerably weaker result than earlier forecast for the whole year 2005. The loss is calculated to be less than last year when the group reported a loss of 108 MSEK (excluding IFRS effects) which included large non-recurrent items.
The forecast submitted in connection with the six month interim report stated a weak positive result.The main reason for the changed forecast is that the market and with that the prices have not yet developed as expected. The price increase during the second part of this year anticipated in the report for the first half year has not occurred during the third quarter.
- Even if we count on a marginally better pulp price formation during the fourth quarter this year the increases will come to late to compensate for the low market prices and for the additional costs over the first nine months for the restructuring of the magnefite line into CTMP (glossary) production at the Utansjö mill. We are very sensitive to pulp price changes. A change of 30 USD or 5 cent per tonne pulp has an effect on the result on a yearly basis by fully 150 MSEK, says Rottneros CEO Lars Blecko.
