Rottneros - PW: wood costs, FX, and CTMP - ABG

PW: Q1 EBIT below Q4 of SEK -28m
Large negative effects from wood, FX and CTMP
Higher wood costs and weaker USD affect all P&P players negatively


PW: Q1 EBIT below Q4 of SEK -28m

Rottneros is out with a PW today, stating that it expects Q1'25 EBIT below Q4'24, which was SEK -28m. Note that clean EBIT in Q4 was SEK -91m (sold SEK 76m in CO2 emission rights, and had SEK -13m in impairments). According to Rottneros, the PW is driven by the continued rise in the prices of wood raw materials, negative market development, especially for CTMP pulp, and weaker USD relative to the SEK. After talking to the company, it seems that Q1 clean EBIT will likely land in the range of SEK -35m to SEK -45m. A preliminary bridge before the PW pointed to a Q1 clean EBIT of SEK 0m to SEK -5m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/rottneros/Equity-research/2025/3/rottneros---pw-wood-costs-fx-and-ctmp/