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[April 2005]
Borregaard's Results After Fourth Quarter 2004
Operating revenues for Borregaard, of which supplier to the clay industry Borregaard LignoTech is a subsidiary, totalled NOK 1.497 billion in the fourth quarter of 2004, equivalent to an underlying decline of 2% compared with the fourth quarter of 2003. Operating profit before goodwill amortisation amounted to NOK 99 million, against NOK 26 million last time. The improvement compared with the previous year was primarily due to the improved profit performance of ChemCell, Energy and Denofa.
Borregaard's operating revenues totalled NOK 6.217 billion overall in 2004, equivalent to 1% underlying growth compared with 2003. Operating profit for 2004 before goodwill amortisation amounted to NOK 356 million, against NOK 344 million last time. The weak results from Denofa were offset by a marked improvement for speciality cellulose and higher profit for Energy. In other areas, profit was on a par with 2003. The continued weak US dollar reduced profitability and was only partially offset by currency hedges and improvement programmes.
The group said that Borregaard LignoTech had reported Q4 2004 profit on a par with Q4 2003. The total sales volume was somewhat higher than the previous year but the lower exchange rate for the US dollar and tougher competition in certain segments led to stronger pressure on prices.
ENDS