Vaahto Group Plc Oyj - Interim Management statement

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2009 - JANUARY 15, 2010

VAAHTO GROUP PLC OYJ STOCK EXCHANGE BULLETIN 15.01.2010 at 9.00

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2009 - JANUARY 15,
2010 

Vaahto Group's turnover for September 1, 2009, to November 30, 2009, was 9.2
million euros (compared with 17.0 million euros for the corresponding period in
the previous fiscal year), with an operating loss of 1.7 million euros
(comparative: operating loss of 0.8 million euros). The turnover saw a decrease
of 46% from that of the reference period, undermining the result. Vaahto
Group's order backlog decreased by 12% during the period under review; it was
17.1 million euros at the beginning of the period and 15.1 million euros at the
end. 

Pulp & Paper Machinery 

The Pulp & Paper Machinery division's turnover for September 1, 2009, to
November 30, 2009, was 6.2 million euros (8.5 million euros), with an operating
loss of 1.6 million euros (operating loss of 1.4 million euros). The turnover
decreased by 27% from the reference period's, making the result lower than in
the reference period. 
The market situation for this division is difficult, and the period saw the
order book decrease. In the Projects business area, the number of projects in
the offer phase increased during the period under review, but the number of new
orders remained low. In the Service business area, some signs of improvement
were detected during the period, and the order book saw an upturn. 

The Board of Directors of the parent company decided to establish a production
unit for the Pulp & Paper Machinery division in China. The objective is to
start production in China during 2010. 

Process Machinery

The Process Machinery division's turnover for September 1, 2009, to November
30, 2009, was 3.1 million euros (8.4 million euros), with an operating loss of
0.1 million euros (operating profit of 0.7 million euros). The turnover
decreased by 64% from that of the reference period, making the result lower
than the comparative figure. 

The Process Machinery division's market situation is still weak. However,
slight improvement was detected in the market during the period under review,
and the division's order book increased slightly for both vessels and
agitators. 

Outlook for the September 1, 2009 - August 31, 2010, fiscal year

The international market situation has remained weak, although slight
improvement has been detected lately. Vaahto Group's order book decreased
significantly during the previous fiscal year, and the starting point for the
current fiscal year therefore was difficult. In the course of the period under
review, the Group companies continued extensive measures to adjust their
operations to the weaker demand and market situation. 

As a consequence of the poor order book, the first half of the fiscal year will
be difficult. Since the international market situation seems to be picking up,
however, the development of Vaahto Group's results is expected to improve
towards the end of the fiscal year. 

Interim report for September 1, 2009 - February 28, 2010

Vaahto Group will issue a six-month interim report on April 9, 2010.

Lahti, January 15, 2010

VAAHTO GROUP PLC OYJ

Board of Directors

For more information, please contact: 
Anssi Klinga
CEO, Vaahto Group Plc Oyj
Tel.: +358 50 466 1470