2011-07-18 08:00:00 CEST
2011-07-18 08:00:10 CEST
REGULATED INFORMATION
Suominen Yhtymä - Interim report (Q1 and Q3)
SUOMINEN CORPORATION'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011
NET SALES GREW SOME, RESULT ON RED
Tampere, Finland, 2011-07-18 08:00 CEST (GLOBE NEWSWIRE) -- SUOMINEN
CORPORATION INTERIM REPORT 18 JULY 2011 AT 9 A.M.
INTERIM REPORT 1 JANUARY - 30 JUNE 2011
NET SALES GREW SOME, RESULT ON RED
KEY FIGURES 4-6/201 4-6/201 1-6/201 1-6/201 1-12/201
1 0 1 0 0
--------------------------------------------------------------------------------
Net sales, EUR million 43.4 44.1 87.7 84.8 173.4
Operating profit, EUR million 0.0 0.0 -0.6 -0.3 -10.8
Profit/loss for the period, EUR -1.1 -0.8 -2.9 -1.9 -14.4
million
Earnings/share, EUR -0.02 -0.02 -0.06 -0.05 -0.34
Cash flow from operations/share, 0.05 -0.08 0.06 -0.11 -0.06
EUR
Suominen's net sales for the first half of the year grew compared with the
corresponding period in 2010. The second-quarter operating profit improved to
zero level, but cumulatively, the operating profit was still negative. The rise
in raw material costs slowed down compared to the first quarter of the year.
The on-going cost-saving measures had a positive impact on the Group's result.
It is estimated that the result after taxes for the whole year will improve
over 2010, but remain negative.
GROUP FINANCIAL RESULTS
Suominen Corporation generated net sales of EUR 43.4 million (44.1) in the
second quarter. Operating profit was EUR 0.0 million (0.0), profit before taxes
EUR -1.4 million (-1.0) and profit after taxes EUR ‑1.1 million (-0.8).
Net sales for the first half of the year totalled EUR 87.7 million (84.8).
Operating profit was EUR ‑0.6 million (-0.3), profit before taxes EUR -3.6
million (-2.5) and profit after taxes EUR -2.9 million (‑1.9).
Net sales increased by 4 per cent compared to the first six months of the
previous year. Average sales prices increased, thanks both to price rises and
to raw material price clauses included in sales contracts.
The operating profit for the first half of the year showed a loss of EUR 0.6
million. The rise in raw material prices slowed down compared to the first
three months of the year and to certain extent levelled off. The cost impact of
rising raw material prices was therefore lower in the second quarter than in
the first. During the first half of the year, shorter review periods were
negotiated for some raw material clauses included in sales contracts. Operating
costs were down from the corresponding period in 2010. The result included EUR
0.5 million in non-recurring costs due to rationalisation measures in
Flexibles.
Tight capital control and use of cash was continued. Investments were kept at a
low level, and the amount of working capital decreased, despite higher raw
material prices. Cash flow from operations was positive.
Cost-saving and operational enhancement programme
The most significant savings in Suominen's Stairs to the Top efficiency
programme were generated by the closure of the Nastola flexible packaging plant
and the rationalisation measures decided on for Codi Wipes in late 2010. Most
of the machinery transfers from the Nastola plant have been completed, and the
savings will begin to have their full impact beginning in the second half of
the year. The other efficiency measures were related to improving production
yield and efficiency in the units. The positive impact of the savings and
efficiency programmes on the result for the first six months amounted to some
EUR 3 million.
Financing
Suominen refinanced its EUR 44 million syndicated credit facility by extending
the average maturity of the financing. Under the amended credit terms, the
repayment of EUR 15 million originally due at the end of June was prolonged to
take place in three quarterly payments beginning in January 2012. The Group's
interest-bearing net liabilities totalled EUR 57.5 million (57.4), including
capital loans of EUR 4.0 million (6.0). Repayments of non-current loans
amounted to EUR 2.7 million. Net financial expenses were EUR 3.0 million (2.1),
or 3.4 per cent (2.5) of net sales. The increased cost of financing was due to
the higher average interest rate on the loans.
A total of EUR 2.8 million was released in working capital (EUR 6.4 million
tied up). Trade receivables amounting to EUR 13.2 million (10.9) were sold to
the bank. The equity ratio was 24.8 per cent (32.0). When capital loans are
included in shareholders' equity, the equity ratio was 28.1 per cent (36.3) and
the net gearing 158.2 per cent (102.0). Cash flow from operations was EUR 2.8
million (-4.1) and EUR 0.06 per share (-0.11).
Investments
The company's gross investments in production totalled EUR 2.4 million (3.5).
Planned depreciation amounted to EUR 4.0 million (4.8). Codi Wipes accounted
for EUR 0.1 million (0.3), Nonwovens for EUR 0.7 million (1.2) and Flexibles
for EUR 1.4 million (2.0) of total investments. The Group's investments were in
efficiency enhancement and maintenance.
SEGMENT RESULTS
The Wiping business area generated net sales of EUR 54.6 million (51.7) in the
first six months, a 6 per cent increase over the corresponding period in 2010.
The business area's operating profit was EUR ‑0.2 million (-0.9).
Net sales of Codi Wipes, at EUR 27.6 million (28.7), declined by 4 per cent on
the previous year. Sales of personal care wipes increased, while baby wipe and
moist toilet wipe sales were down. Average sales prices remained at the same
level as in the corresponding period in 2010. The co-determination procedure
completed in January resulted in a reduction of personnel by 19 employees,
which was the most significant factor behind the unit's lower operating
expenses.
Net sales of Nonwovens increased by 16 per cent to EUR 30.1 million (26.0).
Growth was most pronounced in deliveries of nonwovens for wiping products, but
sales of nonwovens for hygiene and health care products also increased.
Regionally, most growth was seen in Europe, although sales to North America
also increased. The rise in raw material prices slowed down, and their cost
impact was lower in the second quarter than in the first.
Net sales of Flexibles during the first half of the year totalled EUR 33.6
million (33.5) and operating profit was EUR 0.0 million (0.7). Hygiene
packaging sales increased, while sales of carrier bags and security and system
packaging remained more or less on a level with the previous year. Food
packaging sales decreased on the previous year. Sales prices were raised on the
basis of raw material clauses included in sales contracts and by implementing
general price increases.
Rising prices of plastic-based raw materials, especially in the first months of
the year, pushed the cost level up. Actual operating expenses decreased on the
previous year. The machinery transfers from Nastola to the Polish and Tampere
plants proceeded according to plan. Non-recurring costs amounting to EUR 0.5
million were recorded during the period.
SHARE CAPITAL AND SHARES
Share capital
The registered number of Suominen's issued shares totals 47,395,014 shares.
There were no changes in share capital during the period under review.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 30 June 2011 was 2,700,108 shares, equivalent to 5.7 per cent of
shares included in the company's share capital. The trading price varied
between EUR 0.45 and EUR 0.64. The final trading price was EUR 0.50, giving the
company a market capitalisation of EUR 23,667,358 on 30 June 2011.
Own shares
On 1 January 2011, the company held 168,805 of its own shares, accounting for
0.36 per cent of the share capital and votes.
The Annual General Meeting of Shareholders held in 2010 authorised the Board of
Directors to decide on the acquisition of a maximum of 200,000 of the company's
own shares and on the conveyance of a maximum of 200,682 of the company's own
shares. The authorisations will be valid for 18 months after the end of the
General Meeting, that is until 23 September 2011. The acquisition authorisation
was exercised during 2010 to acquire 123,595 shares, which means that on 1
January 2011 the remaining authorisation was for 76,405 shares. Within the
authorisation granted to the Board of Directors, 108,507 of the company's own
shares were conveyed as emoluments to the members of Suominen Corporation's
Board of Directors.
On 30 June 2011, Suominen Corporation held a total of 60,298 of its own shares,
accounting for 0.13 per cent of the share capital and votes.
Other authorisations granted to the Board of Directors
The Board of Directors is not currently authorised to issue shares, convertible
bonds, or bonds with warrants.
BUSINESS RISKS AND UNCERTAINTIES
The estimate on the development of Suominen's net sales is in part based on
forecasts and delivery plans received from customers. Changes in these
forecasts and plans resulting from changes in the market conditions or in
customers' inventory levels may affect Suominen's net sales. Due to the
continued economic uncertainty and consumers' cautious buying behaviour, the
forecasts are subject to significant uncertainty.
Suominen's customer base is fairly concentrated, which adds to the
customer-specific risk. Long-term contracts are preferred in the case of the
largest customers. Suominen has aimed at making general and customer-specific
price increases on its products, which in principle involves a risk of losing
orders in the future.
Nonwovens and Flexibles buy oil- and pulp-based raw materials for more than EUR
55 million annually, and the rapid changes in global market prices of raw
materials affect Suominen's profitability.
Suominen does not have any competitors with a fully similar product offering.
However, the company has numerous regional, national or international
competitors in its different product groups. There is production oversupply in
most product groups, and thus if Suominen Corporation is not able to compete
with an attractive product offering, it may lose some of its market share. The
competition may lead to increased pricing pressure on the company's products.
Suominen's efficiency programmes include measures to improve production
efficiency, for example through better yields, higher machine speeds and
shorter set-up times. The full impact of the efficiency measures will be seen
as soon as production volumes grow. Postponed or failed measures will have a
negative impact on the company's profit. The Flexibles business area is
currently closing one plant and transferring the production to other plants,
which involves a risk of delays in the production schedule.
Suominen aims to improve its balance sheet by reducing debt with financial
institutions. For this reason, the amended credit terms of the EUR 44 million
syndicated credit facility affirms that Suominen aims to seek capital market
financing during the latter part of 2011. The company is also striving to
further improve its balance sheet by the divestment of non-key assets and
business operations. If the company is not able to free up capital or obtain
capital market financing, there is a risk that Suominen will not be able to
meet the debt reduction requirement. Suominen's credit arrangements include
covenants that the company must meet. These require the Group to have financial
buffers worth a minimum of EUR 1 million until the end of October and of EUR 2
million after that. The Group's equity ratio must be 27 per cent, with capital
loans included in equity. Should Suominen default on its obligations, the banks
have the right to declare the loans due and payable and to renegotiate the
terms.
The sensitivity of Suominen's goodwill to changes in business conditions is
described in the notes to the financial statements 2010. Actual cash flows may
deviate from the forecasted future discounted cash flows, as the long economic
life-time of the company's non-current assets, and changes in the estimated
product prices, production costs, and interest rates used in discounting may
result in write-downs.
General risks relating to business operations are described in the Report of
the Board of Directors in the Annual Report 2010.
OUTLOOK
The demand for Suominen's products is evaluated on the basis of customer
contracts and use forecasts provided by customers. It is estimated that the
demand for Suominen's products will remain stable, and no major change from the
previous year is anticipated in net sales for 2011.
Prices for Suominen's products are expected to increase thanks to the price
increases implemented and the raw material clauses included in sales contracts.
Measures to reduce operational costs are continuing, and the cost savings
generated by the closure of the Nastola plant will begin to have an impact from
the second half of the year.
It is estimated that the result after taxes for all of 2011 will improve over
2010, but remain negative.
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY-30 JUNE 2011
This interim report has been prepared in compliance with IAS 34 Interim
Financial Reporting. The principles for preparing the interim report are the
same as those used for preparing the financial statements for 2010, and this
interim report should be read parallel to the financial statements for 2010.
Changes to published accounting standards and interpretations, together with
the new accounting standards that came into force on 1 January 2011, are
presented in the financial statements for 2010.
All calculations in this interim report have been prepared in compliance with
the revised IAS 1 standard, ‘Presentation of Financial Statements'. This
standard is aimed at improving users' ability to analyse and compare the
information given in financial statements by separating changes in equity of an
entity arising from transactions with owners from other changes in equity.
Non-owner changes in equity will be presented in the statement of comprehensive
income.
The figures in this interim report have not been audited.
BALANCE SHEET
EUR 1 000 6/2011 6/2010 12/2010
------------------------------------------------------------------------------
Assets
Non-current assets
Goodwill 18 498 23 404 18 498
Intangible assets 747 746 776
Tangible non-current assets 51 186 55 376 53 873
Available-for-sale financial assets 212 212 212
Held-to-maturity investments 421 288 354
Deferred tax assets 1 894 910 1 339
------------------------------------------------------------------------------
Non-current assets, total 72 958 80 936 75 052
Current assets
Inventories 27 211 28 600 24 373
Trade receivables 14 884 14 228 10 817
Other current receivables 3 106 2 895 5 666
Income tax receivables 371 926 200
Cash at bank and in hand 3 807 10 927 3 253
------------------------------------------------------------------------------
Current assets, total 49 379 57 576 44 309
Assets, total 122 337 138 512 119 361
Shareholders' equity and liabilities
Equity attributable to owners of the parent company
Share capital 11 860 11 860 11 860
Share premium account 24 681 24 681 24 681
Invested non-restricted equity fund 9 708 9 757 9 708
Fair value and other reserves 72 -228 665
Translation differences 555 -49 515
Other shareholders' equity -17 073 -1 677 -14 143
------------------------------------------------------------------------------
Shareholders' equity, total 29 803 44 344 33 286
Liabilities
Non-current liabilities
Deferred tax liabilities 2 524 3 069 2 930
Provisions 280 280 280
Capital loans 2 000 4 000 4 000
Interest-bearing liabilities 39 870 45 325 35 823
------------------------------------------------------------------------------
Non-current liabilities, total 44 674 52 674 43 033
Current liabilities
Interest-bearing liabilities 17 424 16 960 19 459
Capital loans 2 000 2 000 2 000
Income tax liabilities 231 341
Trade payables and other current liabilities 28 205 22 193 21 583
------------------------------------------------------------------------------
Current liabilities, total 47 860 41 494 43 042
Liabilities, total 92 534 94 168 86 075
Shareholders' equity and liabilities, total 122 337 138 512 119 361
STATEMENT OF INCOME
EUR 1 000 4-6/201 4-6/201 1-6/201 1-6/201 1-12/201
1 0 1 0 0
--------------------------------------------------------------------------------
Net sales 43 386 44 148 87 689 84 764 173 438
Cost of goods sold -40 689 -41 499 -82 500 -79 416 -165 277
--------------------------------------------------------------------------------
Gross profit 2 697 2 649 5 189 5 348 8 161
Other operating income 120 403 375 464 859
Sales and marketing expenses -934 -899 -1 777 -1 814 -3 927
Research and development -422 -463 -924 -971 -1 951
Administration expenses -1 441 -1 485 -3 279 -3 128 -6 333
Other operating expenses 20 -222 -156 -241 -2 564
--------------------------------------------------------------------------------
Operating profit before impairment 40 -17 -572 -342 -5 755
losses
Impairment losses -5 069
--------------------------------------------------------------------------------
Operating profit 40 -17 -572 -342 -10 824
Financial income and expenses -1 457 -988 -3 004 -2 126 -4 840
--------------------------------------------------------------------------------
Profit before income taxes -1 417 -1 005 -3 576 -2 468 -15 664
--------------------------------------------------------------------------------
Income taxes 289 245 713 587 1 302
--------------------------------------------------------------------------------
Profit/loss for the period -1 128 -760 -2 863 -1 881 -14 362
Earnings/share, EUR -0.02 -0.02 -0.06 -0.05 -0.34
STATEMENT OF COMPREHENSIVE INCOME
EUR 1 000 4-6/201 4-6/201 1-6/201 1-6/201 1-12/201
1 0 1 0 0
--------------------------------------------------------------------------------
Profit/loss for the period -1 128 -760 -2 863 -1 881 -14 362
Other comprehensive income
Total exchange differences on 20 -804 54 92 854
foreign operations
Fair value changes of cash flow -425 318 -962 332 1 661
hedges
Other reclassifications -3 -8 -12 -2 -2
Income tax on other comprehensive 105 127 236 -110 -654
income
--------------------------------------------------------------------------------
Other comprehensive income, total -303 -367 -684 312 1 859
Total comprehensive income for the -1 431 -1 127 -3 547 -1 569 -12 503
period
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR 1 Share Share Invested Own Translat Fair Retaine Total
000 capita premium non-restri shares ion value d
l account cted differen reserv earning
equity ces es s
fund
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -163 515 828 -14 143 33 286
equity
at
1 Jan.
2011
Profit/l -2 863 -2 863
oss for
the
period
Other 40 -712 -12 -684
compreh
ensive
income
Share-ba 13
sed
payment
s
Share
issue
Dividend
Repurcha
se of
own
shares
Conveyan 120 -69 51
ce of
own
shares
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -43 555 116 -17 074 29 803
equity
at
30 June
2011
EUR 1 Share Share Invested Own Translat Fair Retain Total
000 capita premium non-restric shares ion value ed
l account ted equity differen reserv earnin
fund ces es gs
--------------------------------------------------------------------------------
Total 11 860 24 681 -1 -117 -401 667 36 689
equity
at
1 Jan.
2010
Profit/l -1 881 -1 881
oss for
the
period
Other 68 246 -2 312
compreh
ensive
income
Share-ba 15 15
sed
payment
s
Share 9 757 9 757
issue
Dividend -474 -474
Repurcha -123 -123
se of
own
shares
Conveyan 51 -1 50
ce of
own
shares
--------------------------------------------------------------------------------
Total 11 860 24 681 9 757 -73 -49 -155 -1 676 44 345
equity
at
30 June
2010
EUR 1 Share Share Invested Own Transla Fair Retaine Total
000 capita premium non-restri shares tion value d
l account cted differe reserv earning
equity nces es s
fund
--------------------------------------------------------------------------------
Total 11 860 24 681 -1 -117 -401 667 36 689
equity
at
1 Jan.
2010
Profit/l -14 362 -14 362
oss for
the
period
Other 632 1 229 -2 1 859
compreh
ensive
income
Share-ba 29 29
sed
payment
s
Share 9 708 9 708
issue
Dividend -474 -474
Repurcha -213 -213
se of
own
shares
Conveyan 51 -1 50
ce of
own
shares
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -163 515 828 -14 143 33 286
equity
at
31 Dec.
2010
CASH FLOW STATEMENT
EUR 1 000 1-6/2011 1-6/2010 1-12/2010
----------------------------------------------------------------------------
Operations
Operating profit -572 -342 -10 824
Total adjustments 3 868 4 761 14 076
----------------------------------------------------------------------------
Cash flow before change in working capital 3 296 4 419 3 252
Change in working capital 2 764 -6 379 -1 054
Financial items -3 240 -2 150 -4 626
Taxes paid -1 -20 -31
----------------------------------------------------------------------------
Cash flow from operations 2 819 -4 130 -2 459
Investment payments
Investments in tangible and intangible assets -2 501 -3 543 -5 966
Proceeds from disposal of fixed assets 190 349 751
and other proceeds
----------------------------------------------------------------------------
Cash flow from investing activities -2 311 -3 194 -5 215
Financing
Non-current loans drawn 2 765 13 000 8 000
Repayments of non-current loans -737 -5 033 -23 731
Change in commercial papers 1 488 988
Repayments of capital loans -2 000 -2 000 -2 000
Current loans drawn 17 000
Dividends paid -474 -474
Repurchase and conveyance of own shares 51 -73 -163
Share issue 9 757 9 708
----------------------------------------------------------------------------
Cash flow from financing 79 16 665 9 328
Change in cash and cash equivalents 587 9 341 1 654
KEY FIGURES 4-6/2011 4-6/2010 1-6/2011 1-6/2010 1-12/201
0
--------------------------------------------------------------------------------
Net sales, change, % * -1.7 1.8 3.5 -6.2 -3.3
Gross profit, % ** 6.2 6.0 5.9 6.3 4.7
Operating profit, % ** 0.1 0.0 -0.7 -0.4 -6.2
Financial income and expenses, -3.4 -2.2 -3.4 -2.5 -2.8
% **
Profit before income taxes, % -3.3 -2.3 -4.1 -2.9 -9.0
**
Profit for the period, % ** -2.6 -1.7 -3.3 -2.2 -8.3
Earnings/share, EUR -0.02 -0.02 -0.06 -0.05 -0.34
Equity/share, EUR *** 0.63 0.94 0.70
Cash flow from 0.06 -0.11 -0.06
operations/share, EUR
Return on equity (ROE), % -18.2 -9.7 -37.3
Return on invested capital -1.3 -0.6 -10.6
(ROI), %
Equity ratio, % 24.8 32.0 27.9
Gearing, % 192.9 129.3 174.0
Gross investments, EUR 1 000 2 377 3 458 6 190
Depreciation, EUR 1 000 4 013 4 829 9 322
Impairment losses, EUR 1 000 5 069
* Compared with the corresponding period of the previous year.
** As of net sales.
*** Reference data has been corrected.
SEGMENT REPORTING
Wiping
EUR 1 000 1-6/2011 1-6/2010 Change % 1-12/2010
--------------------------------------------------------------------------------
Net sales
- Codi Wipes 27 571 28 728 -4.0 56 371
- Nonwovens 30 076 25 968 15.8 59 084
- eliminations -3 042 -3 000 1.4 -7 296
--------------------------------------------------------------------------------
Total 54 606 51 696 5.6 108 159
Operating profit before impairment -238 -929 -3 699
losses
% of net sales -0.4 -1.8 -3.4
Impairment losses -4 906
Operating profit -238 -8 605
Assets 73 898 79 919 67 650
Liabilities 17 809 12 026 11 620
Net assets 56 089 67 893 56 030
Investments 886 1 440 2 278
Depreciation 2 440 3 256 6 117
Impairment losses 4 906
Average personnel 341 377 369
Flexibles
EUR 1 000 1-6/2011 1-6/2010 Change % 1-12/2010
----------------------------------------------------------
Net sales 33 580 33 502 0.2 66 140
Operating profit -47 738 -1 941
% of net sales -0.1 2.2 -2.9
Assets 46 496 47 872 45 950
Liabilities 11 429 12 549 10 048
Net assets 35 067 35 323 35 902
Investments 1 417 2 011 3 788
Depreciation 1 556 1 561 3 181
Impairment losses 163
Average personnel 494 529 521
Non-allocated items
EUR 1 000 1-6/2011 1-6/2010 1-12/2010
------------------------------------------------
Net sales -496 -434 -861
Operating profit -287 -150 -115
Assets 1 943 10 721 5 760
Liabilities 63 296 69 592 64 406
Investments 73 7 124
Depreciation 18 12 24
Average personnel 11 11 11
NET SALES BY MARKET AREA
EUR 1 000 1-6/2011 1-6/2010 1-12/2010
-----------------------------------------------
Finland 13 660 13 393 27 053
Scandinavia 8 085 7 817 14 821
The Netherlands 4 175 4 262 9 915
Europe, other 54 806 53 705 104 651
Other countries 6 963 5 587 16 998
-----------------------------------------------
Net sales, total 87 689 84 764 173 438
QUARTERLY FIGURES
EUR 1 000 III/201 IV/2010 I/2011 II/201 III/2010-I/2
0 1 011
--------------------------------------------------------------------------------
Net sales
Wiping
- Codi Wipes 14 210 13 433 13 985 13 586 55 214
- Nonwovens 14 958 18 159 15 091 14 985 63 193
- eliminations -1 734 -2 562 -1 131 -1 911 -7 337
--------------------------------------------------------------------------------
Total 27 434 29 029 27 946 26 660 111 069
Flexibles 16 125 16 513 16 561 17 019 66 218
Non-allocated items -200 -227 -203 -294 -924
--------------------------------------------------------------------------------
Net sales, total 43 359 45 315 44 303 43 386 176 363
Operating profit
Wiping -1 136 -623 -298 60 -1 998
% of net sales -4.1 -2.1 -1.1 0.2 -1.8
Flexibles -720 -1 017 -62 512 -1 287
% of net sales -4.5 -6.2 -0.4 3.0 -1.9
Non-allocated items 33 3 -57 -230 -252
--------------------------------------------------------------------------------
Operating profit before -1 824 -1 637 -417 342 -3 536
non-recurring costs
% of net sales -4.2 -3.6 -0.9 0.8 -2.0
Non-recurring costs -7 021 -195 -302 -7 518
--------------------------------------------------------------------------------
Operating profit, total -1 824 -8 658 -612 40 -11 054
% of net sales -4.2 -19.1 -1.4 0.1 -6.3
Net financial expenses -1 028 -1 686 -1 547 -1 457 -5 718
--------------------------------------------------------------------------------
Profit before income taxes -2 852 -10 344 -2 159 -1 417 -16 771
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is recognised based on the estimated average income tax rate
for the full financial year.
INFORMATION ON RELATED PARTIES
Suominen has related party relationships with the members of the Board of
Directors, and the members of the Corporate Executive Team. The company has no
investments in associated companies. Salaries paid to the related parties
amounted to EUR 567,000, share-based payments EUR 13,000, unsecured loans EUR
440,000, and interest payments EUR 76,000.
MOVEMENTS IN BORROWINGS
EUR 1 000 1-6/2011 1-6/2010
--------------------------------------------------------------------------
Total borrowings on 1 January 61 282 60 861
Current loans from financial institutions on 1 January 17 000
Change in current loans from financial institutions -564
--------------------------------------------------------------------------
Current loans from financial institutions on 30 June 16 436
Commercial papers on 1 January 988
Change in commercial papers 1 488
--------------------------------------------------------------------------
Commercial papers on 30 June 988 1 488
Non-current loans on 1 January 37 294 52 861
Change in non-current loans 2 576 7 936
--------------------------------------------------------------------------
Non-current loans on 30 June 39 870 60 797
Capital loans on 1 January 6 000 8 000
Change in capital loans -2 000 -2 000
--------------------------------------------------------------------------
Capital loans on 30 June 4 000 6 000
Total borrowings on 30 June 61 294 68 285
CHANGES IN FIXED ASSETS
1-6/2011 1-6/2010 1-12/2010
EUR 1 000 Tangib Intangib Tangib Intangib Tangib Intangib
le le le le le le
--------------------------------------------------------------------------------
Book value at the 53 873 776 57 044 795 57 044 795
beginning of the period
Investments 2 232 78 3 345 50 5 884 177
Decreases -967 -160 -466 -1
Depreciation -3 907 -106 -4 732 -97 -9 127 -195
Translation differences -45 -121 -2 538
and other changes
--------------------------------------------------------------------------------
Book value at the end of 51 186 747 55 376 746 53 873 776
the period
CONTINGENT LIABILITIES
EUR 1 000 6/2011 6/2010 12/2010
------------------------------------------------------------------
For own debt
Real estate mortgages 26 045 24 045 24 045
Floating charges 50 000 50 000 60 069
Pledged subsidiary shares 82 982 82 982
Other own commitments
Operating leases, real estates 11 902 9 371 9 465
Operating leases, machinery and equipment 5 462 7 350 7 577
Guarantee commitments 1 894 1 724 1 995
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
EUR 1 000 6/2011 6/2010 12/2010
--------------------------------------------------
Currency derivatives
Nominal value 6 464 6 351 5 172
Fair value -17 111 -138
Interest rate derivatives
Nominal value 9 333 25 833 13 833
Fair value -14 -322 -143
Electricity derivatives
Nominal value 3 596 2 337 2 638
Fair value 127 98 1 249
Helsinki, 18 July 2011
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Mr. Petri Rolig, President and CEO, tel. +358 (0)10 214 300
Mr. Arto Kiiskinen, Vice President and CFO, tel. +358 (0)10 214 300
Suominen produces high-quality flexible packaging, wet wipes and nonwovens for
industry and the retail sector. The Group is one of Europe's leading
manufacturers in all its business areas, with operations in Finland, Poland,
the Netherlands, Sweden and Russia. The Group had net sales of EUR 173 million
in 2010 and it employs around 900 people. Suominen is listed on the NASDAQ OMX
Helsinki. www.suominen.fi
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