The earnings call reflects a mixed outlook for Rottneros, with stable performance in the softwood market and successful investment projects balanced by challenges such as squeezed margins from increased costs and reduced profitability in specific segments.
Company Guidance
During the Q3 2024 earnings call for Rottneros (RROS.ST), executives Lennart Eberleh and Monica Pasanen provided detailed guidance on various operational and financial metrics. Despite challenges in the hardwood sector, the softwood market remained stable, with Rottneros securing contracts for higher volumes in 2025 at good prices. The company faced profit pressures due to SEK 40 million in high costs impacting their profit and loss statements. They reported a decrease in quarterly results from SEK 49 million to SEK 40 million, with increased variable costs and slightly lower production volumes compared to the previous year. Investments totaling SEK 319 million were highlighted, with expectations to reach SEK 460 million by year-end, impacting their net cash position. Monica noted a squeezed margin due to rising wood prices, which have nearly doubled, affecting the company's costs significantly. Rottneros is completing several major investment projects, including expansions in CTMP capacity and solar energy initiatives, expecting these to enhance efficiency and competitiveness. Looking ahead to Q4, production volumes will be affected by maintenance shutdowns, and while price projections were not specified, the company remains optimistic about adapting to cyclical market challenges, particularly in light of reduced Chinese demand and packaging board market declines.
Stable Softwood Market
Despite challenges in the hardwood sector, the softwood market remained stable, with Rottneros securing contracts for higher volumes and maintained good prices for the next year.
Investment Projects Near Completion
High investment projects in two pulp mills are nearing completion, expected to enhance efficiency, competitiveness, and resilience.
Strong Balance Sheet
Rottneros maintains a strong balance sheet with 60% equity to assets ratio and good liquidity, supporting ongoing and future investments.
Emission Rights Sale
Rottneros successfully sold SEK 11 million of emission rights and plans to sell more in the future.
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Rottneros AB (RTERF) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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RTERF Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Oct 23, 2024
$0.94
$0.94
0.00%
Jul 24, 2024
$0.94
$0.94
0.00%
Apr 25, 2024
$0.94
$0.94
0.00%
Feb 01, 2024
$0.94
$0.94
0.00%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Rottneros AB (RTERF) report earnings?
Rottneros AB (RTERF) is schdueled to report earning on Feb 06, 2025, TBA Not Confirmed.
What is Rottneros AB (RTERF) earnings time?
Rottneros AB (RTERF) earnings time is at Feb 06, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.