Metsä Group’s sales in the 1Q 2020 were Euro 1,253.0 million, compared to Euro 1,437.7 million in the 1Q 2019.
The comparable operating result was Euro 62.4 million, or 5% of sales. The decrease in the operating result is mainly attributable to a decline in the sales prices of pulp and the strikes in Finland, which is estimated to have a negative impact of roughly Euro 50 million on the operating result, some Euro 45 million of which concerns the 1Q.
Metsä Group’s operating result (IFRS) was Euro 61.1 million. The share of the results of associated companies and joint ventures was Euro 0.5 million, financial income was Euro 0.8 million, exchange rate differences in financing were Euro -0.3 million, and financial expenses totalled Euro 15.8 million.
President and CEO Ilkka Hämälä said: “As anticipated, Metsä Group’s result in the 1Q 2020 remained below that of the previous quarter. The lengthy strikes which concerned all of our business areas weakened our profit-making ability. The spread of the coronavirus disease COVID-19, which developed into a pandemic, did not have a negative impact on the demand for our products during the 1Q, with the exception of the sawn timber market, particularly in Europe, and Metsä Wood’s upgrading business in the UK.”