Vaahto Group Plc Oyj - Interim Management statement

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2010 - JULY 1, 2011

Lahti, Finland, 2011-07-01 08:00 CEST (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC OYJ
STOCK EXCHANGE BULLETIN 1.6.2011 at 09.00 

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2010 - JULY 1, 2011

Vaahto Group's turnover for September 1, 2010, to May 31, 2011, was 40.4
million euros (compared with 26.2 million euros for the corresponding period in
the previous fiscal year), with an operating loss of 0.6 million euros
(comparative: operating loss of 5.7 million euros). Turnover grew by 54% from
the reference period, and the operating result was better than in the
comparative period. The Group's turnover for the third quarter (March 1 to May
31, 2011) was 15.5 million euros (compared with 8.0 million euros for the
corresponding period in 2010), with an operating profit of 0.7 million euros
(comparative: operating loss of 2.0 million euros). The Group's order book on
May 31, 2011, totaled 25.4 million euros (May 31, 2010: 13.0 million euros).
Vaahto Group's result is expected to improve significantly from the previous
fiscal year's figure, and the full-year operating profit is expected to be
slightly positive. 

Pulp & Paper Machinery

The Pulp & Paper Machinery division's turnover for September 1, 2010 - May 31,
2011, was 28.8 million euros (16.7 million euros), with an operating profit of
0.4 million euros (operating loss of 5.1 million euros). Turnover grew by 72%
from the reference period's level, and the operating result was clearly better. 

The market situation for the Pulp & Paper Machinery division has remained good.
In the project business, the most significant new orders in the third quarter
of the fiscal period (March 1 to May 31, 2011) were the pulp dryer rebuild for
Stora Enso's pulp mill in Imatra and the modernization of the press section of
the board machine for Stora Enso's Inkeroinen mill. Furthermore, in June, after
the third quarter ended, the division received an order for modernization of
headboxes in a board machine from Henan Xinhai in China. 

The market situation for the Service business improved in the course of the
spring, and the outlook for the final quarter of the fiscal period is good. 

Process Machinery

The Process Machinery division's turnover for September 1, 2010 - May 31, 2011,
was 11.6 million euros (9.6 million euros), with an operating loss of 1.0
million euros (operating loss of 0.6 million euros). The turnover increased by
21% from that of the reference period, but the result was still lower than the
comparative figure. The result was affected by the poor profitability of the
vessel business. 

For the most part, the market situation for the division's vessel business
remained weak during the period under review. The number of projects in the
offer phase is moderate, but few projects have entered the decision stage and
the price level has been weak. The order book of the vessel business turned to
a slight increase at the end of the period, and the prospects for the last
quarter of the fiscal year have improved. 

The development of the Process Machinery division's agitator business has been
in line with targets during the review period, and the market situation is
expected to remain strong. 

Vaahto Group implemented a reorganization of its process machinery business on
June 1, 2011, and combined the agitator businesses of the Group into the Mixing
Technology -business unit. The goal is to utilize synergy effects, streamline
processes, and strengthen the market position. The companies responsible for
the Group's agitator business are Japrotek Oy Ab, from Finland, Stelzer
Rührtechnik International GmbH, from Germany. 

Outlook for the September 1, 2010 - August 31, 2011, fiscal year

In the period under review, Vaahto Group's order book has grown significantly,
enabling profitable business operations. Recognition of projects in the order
backlog will be weighted toward the latter half of the fiscal year. Vaahto
Group's result is expected to improve significantly from the previous fiscal
year's figure, and the full-year operating profit is expected to be slightly
positive. 

In Lahti, on July 1, 2011

VAAHTO GROUP PLC OYJ

Board of Directors



For more information, please contact:


         Anssi Klinga
         CEO, Vaahto Group Plc Oyj
         Tel.: +358 50 466 1470