Ahlstrom - Interim report (Q1 and Q3)

Profitability shows signs of improvement

Ahlstrom Corporation STOCK EXCHANGE RELEASE April 29, 2014 at 09:00 a.m.

This is a summary of the January-March 2014 interim report. The complete report
with tables is attached to this release and available at www.ahlstrom.com

Ahlstrom interim report January-March 2014

Profitability shows signs of improvement

Continuing operations January-March 2014 compared with January-March 2013

  * Net sales EUR 249.2 million (EUR 255.3 million).
  * Operating profit EUR 4.4 million (EUR 8.3 million).
  * Operating profit excluding non-recurring items EUR 7.2 million (EUR 6.5
    million).
  * Operating margin excluding non-recurring items 2.9% (2.5%).
  * Profit before taxes EUR 5.2 million (EUR 3.6 million).
  * Earnings per share EUR 0.05 (EUR 0.03).

January-March 2014 in brief

  * Reported net sales fell by 2.4%, while profitability improved. Comparable
    net sales grew 2.6% at constant currency rates and there was clear
    improvement in the profitability of three business areas: Advanced
    Filtration, Food, and Transportation Filtration.
  * New products were introduced to accelerate growth and improve sales mix and
    profit margin. One key product launch was Ahlstrom NatureMold(TM), a new
    biodegradable molding material for food packaging.

Outlook for 2014

  * The outlook published on January 30, 2014 remains unchanged. Net sales are
    expected to be EUR 930-1,090 million. The operating profit margin excluding
    non-recurring items is expected to be 2-5% of net sales.

Jan Lång, President & CEO"I'm pleased that we were able to make good progress and improve our
profitability in three business areas. Advanced Filtration achieved excellent
profitability, Transportation Filtration posted solid growth in both sales and
profits, and Food showed very good comparable growth during the quarter.
Overall, our new products are gaining traction.""Meanwhile, we continued to address the issues in our two underperforming
businesses, Building and Energy, and Medical. We still have work ahead of us in
these two businesses, but I'm confident that we are able to enhance
competitiveness with ongoing initiatives.""Our rightsizing program, aimed at reducing costs by EUR 50 million annually is
progressing as planned. We are well placed to improve our profitability this
year and beyond through the rightsizing and growth initiatives."


Key figures from continuing operations

 EUR million                               Q1/2014 Q1/2013 Change, %    2013
----------------------------------------------------------------------------
 Net sales                                   249.2   255.3      -2.4 1,014.8

 Operating profit                              4.4     8.3     -47.2    10.7

              % of net sales                   1.8     3.3               1.1

 Operating profit excl. NRI                    7.2     6.5      11.6    13.4

              % of net sales                   2.9     2.5               1.3

 Profit / Loss before taxes                    5.2     3.6      44.0   -15.4

 Profit / Loss for the period                  3.1     1.9      60.9   -18.9

 Earnings per share                           0.05    0.03      71.0   -0.46

 Return on capital employed, %                 3.4     5.1               0.9

 Net cash flow from operative activities *    -6.1   -21.4      71.6    41.0

 Capital expenditure                           9.0    11.5     -22.0    76.1

 Number of personnel, at the end of period   3,502   3,821      -8.3   3,536
----------------------------------------------------------------------------
*Including discontinued operations

Operating environment

The operating environment in Ahlstrom's main markets in the first quarter of
2014 improved slightly from the comparison period. The North American economy
continued to grow and some positive signs were also seen in Europe. Development
varied in Asia with growth slowing in China. The economy in South America
continued to be soft.

In the Advanced Filtration business area, steady growth continued in the
laboratory and life science filtration markets in Europe and Asia, whereas the
development was somewhat softer in North America. Demand for water, gas turbine
and high efficiency air applications grew as well.

In the Building and Energy business area, demand for construction related
materials was stable in Europe, but softened in Russia. The market for
reinforced glass fiber products for the wind energy industry in Europe was
steady at a low level, whereas it started to recover in North America supported
by tax incentives. Demand for wallpaper and wallcovering substrates in Europe
and China softened during the period.

In the Food business area, demand for beverage, food packaging and tape products
continued to be solid in all main geographical regions except for South America.
Growth continued in the single-use coffee products market.

In the Medical business area, demand for medical fabrics was stable in Europe
and North America, while it strengthened in Asia, supported by the growing trend
for single-use products.

In the Transportation Filtration business area, solid growth continued in the
transportation filtration materials markets in Asia, North America and Europe.
In South America, the market started to show some positive signs following a
slowdown in the second half of 2013.

Discontinued operations

The operative result of the Brazilian operation of the former Home and Personal
business area was included in discontinued operations until February 10, 2014,
when its sale to Suominen Corporation was completed. The comparison figures
include the operative results from the Label and Processing business as well as
the Brazilian operations of the former Home and Personal business area. All
operative figures exclude depreciation.

Result from discontinued operations

In January-March 2014, the loss from discontinued operations for the period was
EUR 1.2 million (EUR 6.0 million profit). The figure includes a reversal of EUR
2.2 million net of tax of an impairment loss and transaction costs to divest the
Brazilian operations of the former Home and Personal business area.  In
addition, it includes a deferred tax cost in Germany.

Result including discontinued operations

In January-March 2014, profit for the period including discontinued operations
was EUR 1.9 million (EUR 7.9 million). Earnings per share with the effect of
interest net of tax on the hybrid bond were EUR 0.03 (EUR 0.16).

Return on equity (ROE) was 2.2% (6.6%).

Rightsizing program

Following the completion of the Label and Processing demerger in 2013, Ahlstrom
initiated a rightsizing program to bring down costs to reflect its new size and
scope. The company aims to achieve EUR 50 million in annual cost savings. The
majority of the planned actions related to the rightsizing program will be
realized by the end of 2014, and the full impact of the program is expected to
be visible in 2015.

As a result of the planned program, Ahlstrom's personnel is to be reduced by
approximately 400 people globally. The planned changes and personnel impacts are
subject to employee consultation processes according to local legislation in the
countries affected. The targeted savings will be derived from all business areas
and functions globally. In particular, the aim is to reduce selling, general and
administration (SGA) costs and further improve supply chain efficiency. The aim
is to bring the SGA costs back to a level of 10-11% of net sales in 2015.

The program is moving ahead as targeted. As of March 31, 2014, approximately EUR
19 million in total cumulative cost savings were achieved, corresponding to an
annualized run rate of EUR 25 million.

In continuing operations, approximately EUR 12 million in cumulative cost
savings were achieved, of which approximately EUR 4 million in the first quarter
of 2014. In addition, approximately EUR 7 million were derived from costs
transferred to Munksjö Oyj, of which EUR 2 million in the first quarter of 2014.

Ahlstrom plans to book non-recurring costs of approximately EUR 15 million
related to rightsizing during the years 2014-2015. So far, EUR 6.3 million in
non-recurring costs have been booked, of which EUR 3.1 million was in the first
quarter of 2014.

Outlook

The outlook presented on January 30, 2014 remains unchanged. Based on Ahlstrom's
view of the development of its main markets, pricing and product mix,
competitive dynamics and expected cost savings, the company anticipates net
sales in 2014 to be EUR 930-1,090 million. The operating profit margin excluding
non-recurring items is expected to be 2-5% of net sales.

In 2014, investments excluding acquisitions are estimated to be approximately
EUR 50 million (EUR 76.1 million in 2013).

Short-term risks

The global economy is expected to gain momentum this year, with regional
variations. While the European economy has shown some signs of recovery, it may
be uneven and fragile. Recent indicators for the development of the U.S. economy
are more positive. In Asia, the Chinese economy in particular, may grow at a
slower pace than previously anticipated.

Slower-than-anticipated economic growth poses risks to Ahlstrom's financial
performance. It may lead to lower sales volumes and force Ahlstrom to initiate
more market-related shutdowns at plants, which could affect profitability. The
uncertainty related to global economic growth, increased volatility in our main
markets and limited visibility are making it more difficult to forecast future
developments.

In recent years, Ahlstrom has initiated investment projects, such as the
wallcoverings production line in Binzhou, China, that are in a start-up phase.
The company's financial performance may be negatively affected by the
commercialization of new production lines.

Ahlstrom's main raw materials are natural fibers, mainly pulp, synthetic fibers,
and chemicals. The prices of some of the key raw materials used by Ahlstrom
remain at a high level and are volatile.

If global economic growth slows down, maintaining current sales prices may be at
risk and sustaining the current level of profitability may be compromised, even
if raw material prices fall at the same time.

The general risks facing Ahlstrom's business operations are described in greater
detail on the company website at www.ahlstrom.com and in the report by the Board
of Directors in the company's Annual Report 2013. The risk management process is
also described in the Corporate Governance Statement, also available on the
company's website.

This report contains certain forward-looking statements that reflect the present
views of the company's management. The statements contain uncertainties and
risks and are thus subject to changes in the general economic situation and in
the company's business.

Disclosure procedure
Ahlstrom publishes its January-March 2014 interim report enclosed to this stock
exchange release. The report is attached to this release in pdf format and is
also available on the company's web site at www.ahlstrom.com.

Additional information

Jan Lång, President & CEO, tel. +358 (0)10 888 4700

Sakari Ahdekivi, CFO, tel. +358 (0)10 888 4768

Ahlstrom's President & CEO Jan Lång and CFO Sakari Ahdekivi will present the
January-March 2014 interim report at a Finnish-language press and analyst
conference in Helsinki today,  April 29, 2014, at 10:00 a.m. (CET+1). The
conference will take place at Ahlstrom's head office at Alvar Aallon katu 3 C
(second floor, meeting room Antti).

In addition, President & CEO Lång and CFO Ahdekivi will hold a conference call
in English for analysts, investors and representatives of the media today, April
29, 2014, at 2:30 p.m. (CET+1). To participate in the conference call, please
call (09) 6937 9543 in Finland or +44 (0)20 3427 1910 outside Finland a few
minutes before the conference begins. The access code is 3163135.

The conference call can also be listened to live on the Internet. The link to
the English-language presentation (an audio webcast) including slides is
available on the company website at www.ahlstrom.com. Questions may also be
submitted in writing via the Internet. Listening to the conference call requires
registration.

An on-demand webcast including slides is available for viewing and listening on
the company website for one year after the conference call.

Presentation material will be available on April 29, 2014, after the Interim
Report is published, at www.ahlstrom.com > Investors > Reports and presentations> 2014. Material in Finnish will be available at www.ahlstrom.fi > Sijoittajat >
Katsaukset ja presentaatiot > 2014.


Financial information in 2014

+--------------------------------+-------------------+-----------------+
|Report                          |Date of publication|Silent period    |
+--------------------------------+-------------------+-----------------+
|Interim report January-June     |Wednesday, August 6|July 1 - August 6|
+--------------------------------+-------------------+-----------------+
|Interim report January-September|Friday, October 24 |October 1-24     |
+--------------------------------+-------------------+-----------------+
During the silent period, Ahlstrom will not communicate with capital market
representatives.

Ahlstrom in brief

Ahlstrom is a high performance fiber-based materials company, partnering with
leading businesses around the world to help them stay ahead. We aim to grow with
a product offering for clean and healthy environment. Our materials are used in
everyday applications such as filters, medical fabrics, life science and
diagnostics, wallcoverings and food packaging. In 2013, Ahlstrom's net sales
from the continuing operations amounted to EUR 1 billion. Our 3.500 employees
serve customers in 24 countries. Ahlstrom's share is quoted on the NASDAQ OMX
Helsinki. More information available at www.ahlstrom.com.

[HUG#1780811]

Attachments:

Ahlstrom January-March 2014.pdf