2009-02-05 07:00:00 CET
2009-02-05 07:02:15 CET
REGULATED INFORMATION
Ahlstrom - Financial Statement Release
Financial statements bulletin 2008: Downturn of market towards year-end reflected on Ahlstrom's financial performance
Ahlstrom Corporation STOCK EXCHANGE RELEASE 5.2.2009
Key highlights of year 2008:
* Full-year net sales grew by 2.4% to EUR 1,802.4 million
(EUR 1,760.8 million). Fourth-quarter net sales amounted to EUR
419.0 million (EUR 462.5 million), decreasing by 9.4% due to a
strong decline in the demand especially in December.
* Full-year operating profit decreased to EUR 14.6 million
(EUR 25.8 million), and to EUR 35.7 million (EUR 67.8 million)
excluding non-recurring items. Profitability was burdened by high
raw material and energy prices throughout the year, ramp-up and
integration costs as well as a downturn of the market in the final
quarter.
* Net cash from operating activities developed favorably and
increased by EUR 58.5 million to EUR 102.4 million as a result of
improvement in working capital turnover.
* Further restructuring actions have been started to adjust
operations to the weakening demand, including plans on capacity
closures in Italy and a reduction of personnel worldwide. This
incurred non-recurring items of EUR 21.7 million booked in the
fourth quarter results.
* The Board of Directors proposes a dividend of EUR 0.45
(EUR 1.00) per share to be paid for the fiscal year 2008.
Outlook 2009:
* Based on the weak visibility, Ahlstrom changes its
disclosure policy. An exact outlook on net sales and profitability
is not given.
* In 2009, the operating environment is anticipated to
remain very challenging, and the demand for Ahlstrom products will
vary significantly by product line and depending on the general
development of the customer industries.
Key figures, EUR million Q4/2008 Q4/2007 2008 2007
Net sales 419.0 462.5 1,802.4 1,760.8
Operating profit/loss -35.4 -34.7 14.6 25.8
* excluding non-recurring items -13.7 11.0 35.7 67.8
Profit/loss before taxes -49.5 -43.2 -20.6 0.2
* excluding non-recurring items -27.8 2.5 0.5 42.1
Return on capital employed (ROCE),% -10.8 -10.7 1.4 2.5
* excluding non-recurring items -4.1 3.6 3.0 6.3
Earnings per share, EUR -0.79 -0.64 -0.38 0.01
*excluding non-recurring items -0.41 0.02 -0.01 0.62
Cash earnings per share, EUR 0.67 0.21 2.19 0.94
Gearing ratio, % 95.3 65.3 95.3 65.3
Jan Lång, President & CEO, comments the year 2008:
In 2008, Ahlstrom finalized most of the growth investment program
initiated after the IPO. Approximately EUR 500 million has been
invested in growth initiatives in two years, and as a result of this,
Ahlstrom's global reach is now stronger than ever before.
What I am not happy about is the weak financial performance in 2008,
which was mainly driven by the low gross margin, weak demand in the
fourth quarter as well as the higher than expected ramp-up and
integration costs related to the growth investment program. On a
positive note, we achieved growth in net sales that was in line with
market growth, and cash flow improved significantly as a result of an
improvement in working capital turnover.
Several measures were taken to improve profitability, and to adjust
operations to the decline in demand. These included finalizing the
work began at the end of 2007 to close down and restructure
non-competitive operations in the USA and Europe. Towards the end of
the year, production was cut down globally to adjust the operations
to the changed market situation.
The operating environment is anticipated to remain very challenging
throughout 2009. It is clear that in difficult times such as these,
all means to maximize cash flow will be utilized, including a lower
investment activity than in 2008. Ahlstrom has also announced further
global restructurings for 2009 to respond to the decrease in demand.
Despite the current challenges, I wish to stress that together with
the strengthened Corporate Executive Team, we shall take an active
approach in developing Ahlstrom over the longer term in addition to
managing short-term matters.
OPERATING ENVIRONMENT
In 2008, Ahlstrom's operating environment was very challenging and
reflected the rapid downturn of the global economy. In the first
half-year, demand for most of Ahlstrom's products was strong despite
the early signs of eventual softness of demand in some product
segments. Demand was especially strong in high-growth sectors, such
as the windmill industry.
Demand started to gradually soften in the latter part of the year,
resulting in a steeply declining order stock for most of Ahlstrom's
products as well as a downsizing of inventory levels in the supply
pipeline at the end of the year. Demand decreased especially strongly
in filtration products due to the decline of the global automotive
and construction industries. On the other hand, demand was brisk in
medical and food nonwovens, crepe papers as well as release and label
papers on the South American market.
Prices for Ahlstrom's main raw materials, wood pulp and rayon, and
the price of oil, reached their historical peak levels during the
first half of the year, which had a negative impact on Ahlstrom's
gross margins. Towards the end of the third quarter, indications of a
turn in the price trend started to emerge, and during the fourth
quarter, the average USD market price of NBSK pulp was approximately
16% lower, polyester 18%, rayon 9% and crude oil over 51% lower than
on the third quarter. The decreasing trend has continued in the
beginning of 2009.
FINANCIAL PERFORMANCE
Ahlstrom's business is reported in two segments: the Fiber Composites
segment and the Specialty Papers segment. The Fiber Composites
segment comprises the Advanced Nonwovens, the Home & Personal
Nonwovens, the Glass Nonwovens and the Filtration business areas.
Customers served operate in the building, transportation, healthcare
and hygiene, food and industrial packaging as well as the utilities
industries.
The Specialty Papers segment covers the Release & Label Papers and
the Technical Papers business areas. Customers served operate in the
building, transportation, healthcare and hygiene, food and industrial
packaging and graphics industries.
Ahlstrom provides information on the breakdown of net sales per
segment, per business area and per geographical area. The breakdown
of operating profit is reported per segment.
Net sales by segment Q4/2008 Q4/2007 Change 2008 2007 Change
and business area % %
Fiber Composites 229.1 249.7 -8.2 987.4 941.4 4.9
Advanced Nonwovens 68.7 71.2 -3.6 286.2 291.8 -1.9
Home & Personal
Nonwovens 67.4 70.5 -4.5 268.5 203.4 32.0
Glass Nonwovens 29.4 30.8 -4.8 135.6 122.0 11.1
Filtration 66.2 78.7 -15.9 306.5 332.6 -7.8
Specialty Papers 191.6 214.4 -10.6 822.4 824.7 -0.3
Technical Papers 118.2 117.6 0.5 507.9 485.6 4.6
Release & Label Papers 73.5 97.1 -24.3 314.6 340.4 -7.6
Net sales by Q4/2008 Q4/2007 Change 2008 2007 Change %
geographical area %
Europe 219.6 273.1 -19.6 1,015.9 1,086.5 -6.5
North America 114.9 104.0 10.5 442.5 399.3 10.8
South America 48.3 42.7 13.1 189.2 104.0 81.8
Asia-Pacific 27.4 32.4 -15.6 119.4 130.3 -8.4
Rest of the world 8.8 10.2 -13.6 35.5 40.6 -12.6
Financial result by Q4/2008 Q4/2007 Change % 2008 2007 Change %
segment*
Fiber Composites
Operating profit/loss* -4.5 15.7 -128.7 33.2 60.6 -45.1
Operating profit*, % -2.0 6.3 3.4 6.4
Return on net assets*, 8.7
% -2.2 8.0 4.2
Specialty Papers
Operating profit/loss* -4.6 -2.8 -66.0 12.6 13.9 -9.3
Operating profit*, % -2.4 -1.3 1.5 1.7
Return on net assets*, 3.6
% -4.3 -2.4 2.9
*Excluding non-recurring items
Financial performance in October-December 2008
Net sales
During the October-December period, the global economic downturn
reflected on Ahlstrom's business significantly. A strong decline in
the demand for most of Ahlstrom's products emerged towards the end of
the year coupled with a downsizing of inventory levels in the supply
chain. Group net sales totaled EUR 419.0 million (EUR 462.5 million),
decreasing by 9.4% compared with the same period last year. Sales
volumes decreased by 16.6% during the fourth quarter. Comparable net
sales adjusted for the currency effect, plant closures and
acquisitions decreased by 4.5% and comparable volumes by 6.1%.
The net sales of the Fiber Composites segment amounted to EUR 229.1
million (EUR 249.7 million), representing 55% of the Group net sales.
The net sales of the segment decreased by 8.2% compared with he
fourth quarter in 2007. Net sales decreased in all business areas,
which was due to lower volumes and pricing pressures in many
products, especially in transportation filtration, wipes for home and
personal care as well as in industrial nonwovens products. On the
other hand, net sales grew in medical and food nonwovens
applications.
The net sales of the Specialty Papers segment amounted to EUR 191.6
million (EUR 214.4 million), accounting for 45% of the Group net
sales. The net sales of the segment decreased by 10.6% from the
fourth quarter of 2007, mostly as a result of plant closures within
the Release & Label Papers business area completed in 2008. The
comparable net sales adjusted for closures and acquisitions decreased
by 1%. Net sales grew in crepe papers, vegetable parchment as well as
release and label papers on the South American market.
In terms of geographical areas, the relative share of Europe of the
Group net sales continued to decrease, accounting for 52% (59%) of
Group total. Growth was strongest in North and South America as a
result of completed acquisitions and organic growth investments.
Financial result
In the fourth quarter, Group operating loss amounted to EUR -35.4
million (EUR -34.7 million), decreasing by 2.1% from the fourth
quarter last year. The loss was mainly due to an exceptionally low
demand at the end of the quarter, and non-recurring costs and
write-downs related to restructuring actions announced for 2009.
Operating loss in the quarter excluding non-recurring items amounted
to EUR -13.7 million (operating profit of EUR 11.0 million).
In order to adjust its operations to the demand, Ahlstrom is planning
to close down its Gallarate and Carbonate sites, as well as to close
down one production line in Cressa. All three sites are located in
Italy and manufacture nonwoven fabrics. In addition, Ahlstrom has
started negotiations with the representatives of the personnel on
temporary and permanent layoffs worldwide.
Related to the above mentioned actions, Ahlstrom has booked a
non-recurring restructuring charge of EUR 6.3 million in the fourth
quarter financial results. In addition, a non-cash write-down on
goodwill and tangible assets of EUR 15.4 million has been booked,
mostly related to nonwoven wiping fabrics. The distribution of the
non-recurring items and write-downs by segment is the following:
Specialty Papers EUR 1.8 million and Fiber Composites EUR 20.2
million. In addition, a non-recurring gain of EUR 0.3 million related
to sale of assets has been booked in the fourth quarter financials.
The operating loss of the Fiber Composites segment amounted to EUR
-24.7 million (operating profit of EUR 2.7 million) representing 70%
of the Group operating loss. Most of the decline is accountable for
the non-recurring items and write-downs related with the
restructuring actions. Excluding the non-recurring items and
write-downs, the operating loss amounted to EUR -4.5 million (profit
of EUR 15.7 million), reflecting the significantly lower level of
demand and the weak performance of the wipes business. In addition,
profitability was burdened by ramp-up and integration costs.
The operating loss of the Specialty Papers segment amounted to EUR
-6.5 million (EUR -33.6 million) representing 18% of the Group
operating loss. The main reasons for the loss were the weak
profitability of the Release & Label Papers business area as well as
the restructuring charges stated above. Excluding the non-recurring
items and write-downs, the operating loss of the segment amounted to
EUR -4.6 million (EUR -2.8 million).
Total net financial expenses increased to EUR 13.8 million (EUR 8.6
million). The increase is attributable to a higher level of debt
incurred by the large capital expenditure and high financing costs
related to certain currencies, e.g. the Russian ruble. Ahlstrom's
share of the losses of the associated companies was EUR -0.3 million
(profit of EUR 0.1 million).
Loss before taxes increased to EUR -49.5 million (EUR -43.2 million)
and excluding non-recurring items, to EUR -27.8 million (profit of
EUR 2.5 million).
Tax income amounted to EUR 12.4 million (EUR 14.2 million).
Loss for the period increased to EUR -37.0 million (EUR -29.0
million) and earnings per share (EPS) weakened to EUR -0.79 (EUR
-0.64).
Return on capital employed (ROCE) amounted to -10.8% (-10.7%), and
return on equity (ROE) to -22.4% (-15.1%).
Financial performance in 2008
Net sales
In 2008, Group net sales amounted to EUR 1,802.4 million (EUR 1,760.8
million), growing by 2.4% from 2007. Comparable net sales adjusted
for the currency effect, acquisitions and closures grew by 3.9% from
last year. Net sales grew strongly throughout the three first
quarters, but the weak demand at the end of the fourth quarter
reflected significantly on the full-year figures. The development of
sales volumes was nearly flat year-on-year, as comparable volumes
adjusted for acquisitions and closures grew by 1.2%.
The net sales of the Fiber Composites segment amounted to EUR 987.4
million (EUR 941.4 million), representing 55% of the Group net sales.
The net sales of the segment grew by 4.9% compared with that of 2007.
Comparable net sales adjusted for the currency effect, acquisitions
and closures grew by 4.5% from last year. In terms of the business
areas, net sales grew especially strongly in Home & Personal
Nonwovens as a result of the acquisitions made in 2007, and also in
Glass Nonwovens thanks to the brisk demand for windmill applications.
The net sales of the Specialty Papers segment amounted to EUR 822.4
million (EUR 824.7 million), accounting for 45% of the Group net
sales. The net sales of the segment decreased by 0.3% from 2007,
mostly as a result of plant closures within the Release & Label
Papers business area completed in 2008. On the other hand, new
production gained through acquisitions, especially through the
Jacarei plant in Brazil, increased the net sales by 11.5%. The
comparable net sales adjusted for plant closures and acquisitions
grew by 3.4%.
In terms of geographical areas, the relative share of Europe of the
Group net sales continued to decrease, accounting for 56% (62%) of
Group total. Growth was strongest in North and South America as a
result of completed acquisitions and organic growth investments.
Financial result
In 2008, Group operating profit amounted to EUR 14.6 million (EUR
25.8 million). Excluding non-recurring items, operating profit
amounted to EUR 35.7 million (EUR 67.8 million), decreasing by 47.3%
year-on-year. The non-recurring items of EUR 21.1 million were
related with the restructuring actions announced in the beginning of
2009.
Most of the decline in the operating profit was due to the
exceptionally severe market conditions and low demand in the fourth
quarter. For the first three quarters of the year, operating profit
still totaled EUR 50.0 million (EUR 60.5 million), although burdened
by historically high raw material and energy prices, as well as
additional costs incurred by the several ramp-ups and integration of
acquisitions.
The operating profit of the Fiber Composites segment amounted to EUR
15.3 million (EUR 48.7 million), and excluding non-recurring items
and write-downs, to EUR 33.2 million (EUR 60.6 million). The decrease
in the operating profit is mainly due to the low demand in the fourth
quarter, the weak performance of the wipes business, and additional
costs related to ramp-ups and integration of acquisitions.
The operating profit of the Specialty Papers segment amounted to EUR
10.2 million (loss of EUR -12.5 million). The improvement in the
operating profit was mainly a result of new production at the Jacarei
plant. Excluding the non-recurring items and write-downs, the
operating result of the segment amounted to EUR 12.6 million (EUR
13.9 million).
Loss before taxes was EUR -20.6 million (profit of EUR 0.2 million).
Excluding non-recurring items, profit before taxes was EUR 0.5
million (EUR 42.1 million).
Tax income totaled EUR 4.5 million (EUR 1.2 million).
Loss for the period amounted to EUR -16.1 million (profit of EUR 1.3
million) and earnings per share (EPS) to EUR -0.38 (EUR 0.01).
Return on capital employed (ROCE) amounted to 1.4% (2.5%), and return
on equity (ROE) was -2.3% (0.2%). Net asset turnover was 1.4 (1.6).
FINANCING
In 2008, the net cash flow from operating activities increased by EUR
58.5 million to EUR 102.4 million (EUR 43.9 million) as a result of
improvement in net working capital turnover.
Interest-bearing net liabilities increased by EUR 107.6 million to
EUR 598.7 million (December 31, 2007: EUR 491.1 million).
The gearing ratio was 95.3% (December 31, 2007: 65.3%) and the equity
ratio 36.8% (December 31, 2007: 44.0%).
As of December 31, 2008, Ahlstrom's interest-bearing liabilities
amounted to EUR 656.9 million, divided into financing from banks and
other financial institutions of EUR 524.6 million, EUR 117.5 million
in borrowings under the company's Finnish commercial paper program
and EUR 14.8 million in commitments under financial leases.
During the reporting period, Ahlstrom held several preparatory
discussions with the majority of its relationship banks concerning
the refinancing of EUR 233 million worth of medium term credit
facilities which will mature in 2009, of which EUR 200 million in the
last quarter. Ahlstrom's unutilized credit facilities as of December
31, 2008 amounted to EUR 185 million.
CAPITAL EXPENDITURE
In 2008, Ahlstrom's capital expenditure excluding acquisitions
amounted to EUR 128.0 million (EUR 154.7 million), representing 7.1%
(8.8%) of Group net sales.
Ahlstrom made no new major organic investment decisions during 2008.
Among the largest on-going investments were the following, previously
announced organic growth investments: two new dust filtration
production lines, one in Wuxi, China and one in Bethune, South
Carolina, the USA; a new glassfiber tissue production plant in Tver,
Russia; a new food nonwovens production line in Chirnside, the UK; a
new nonwoven wiping fabrics production line in Paulinia, Brazil; a
new nonwoven production line in Brignoud, France; and the converting
of a paper machine to nonwoven production in Turin, Italy.
In addition, Ahlstrom is establishing a new medical nonwovens plant
in Gujarat, India, with operations estimated to start in the first
quarter of 2010.
Acquisitions and investment decisions
On February 1, 2008 Ahlstrom announced that it had signed an
agreement to acquire Friend Group Inc., which consists of West
Carrollton Parchment Company and West Carrollton Converting Company.
The deal was closed on February 13, 2008, and the acquisition price
was EUR 9.8 million.
On August 29, 2008 Ahlstrom announced that it would acquire the
remaining 40% of the joint venture formed with Votorantim Celulose e
Papel (VCP) in Brazil and Ahlstrom now owns 100% of the shares. The
assets in the joint venture comprise a paper machine, an offline
coater and extensive finishing equipment at the Jacarei plant, close
to São Paolo. The unit is part of Ahlstrom's Release & Label Papers
business area and serves mainly the labeling applications and certain
flexible packaging markets. The total acquisition price was EUR 116
million.
RESEARCH AND DEVELOPMENT IN 2008
Innovation is a key element in Ahlstrom's growth strategy. In 2008,
the R&D expenses totaled EUR 23.8 million (EUR 23.9 million),
representing 1.3% (1.4%) of Ahlstrom's net sales.
In 2008, 48% (39%) of Ahlstrom's net sales was generated by new or
improved products as a result of a large number of organic
investments started up during the year. The company's target range
for net sales generated by new or improved products is 25-35%. In its
reporting, Ahlstrom uses the 3M definition, in which a new product is
perceived by customer as new, not older than three years, and other
innovations represent a significant technical contribution, not older
than three years.
Ahlstrom continued to introduce new products and technologies in
order to further strengthen its position as a leading supplier of
fiber-based materials. Among the key innovations of the year was the
commercialization of Ahlstrom's Disruptor(TM) PAC water filtration
media. The product can be used to remove a wide range of contaminants
from water, such as virus, bacteria, metals, colloids, lead, arsenic,
mercury and copper. During 2008, Disruptor(TM) PAC was awarded as an
innovation of the year by a leading association in the nonwovens
industry.
In 2008, Ahlstrom also commissioned a new production platform in
Chirnside, the UK, to serve the growing infusion products market. The
unique production line is able to process renewable and compostable
plant based fibers, and in line with this investment, Ahlstrom
launched a new premium, compostable teabag material at the end of
2008.
In addition, development efforts were continued to increase the share
of eucalyptus pulp in Ahlstrom's products. In two years, the share of
eucalyptus fibers has increased from 20% to nearly 40%, and benefits
in terms of raw material sustainability, long-term availability and
cost make this a highly strategic development initiative.
CHANGES IN GROUP STRUCTURE
Ahlstrom closed four plants in 2008 due to unsatisfactory
profitability and cash flow. The plant in Ascoli, Italy, was closed
in January, and the plant in Chantraine, France, in June. These
plants produced one-side coated papers for wet glue labeling,
flexible packaging and graphical end users, and belonged to
Ahlstrom's Release & Label Papers business. The plant in Darlington,
South Carolina, USA, was closed in January and the plant in
Bellingham, Massachusetts, USA, in October. Both of the plants
produced filtration media.
The business area organization was changed during the year. The
organization effective as from January 1, 2009 is as follows. The
Fiber Composites segment comprises the Advanced Nonwovens, Home &
Personal Nonwovens, Glass & Industrial Nonwovens and Filtration
business areas. Specialty Papers segment comprises the Technical
Papers and Release & Label Papers business areas. The new business
area organization will be implemented in financial reporting as from
the first quarter of 2009 onwards.
CHANGES IN MANAGEMENT
President & CEO
B.Sc. (Econ.) Risto Anttonen (born 1949) acted as interim CEO from
February 28, 2008 to December 31, 2008, following President & CEO
Jukka Moisio's resignation on February 28, 2008.
On August 13, 2008, the Board of Directors of Ahlstrom Corporation
appointed M.Sc. (Econ.) Jan Lång (born 1957) President & CEO of the
company as from January 1, 2009. Lång joins Ahlstrom from the
position of President and CEO of Uponor Corporation.
As from January 1, 2009, Risto Anttonen assumed the role of Deputy of
the President & CEO and continues as a member of the Corporate
Executive Team.
Corporate Executive Team
The composition of Corporate Executive Team (CET) changed during the
year. The current CET is presented at the corporate website at
www.ahlstrom.com.
PERSONNEL
At the end of 2008, Ahlstrom had 6,365 employees (6,481). The average
number of employees in 2008 was 6,510 (6,108).
PERSONNEL 2008 2007 2006
Number of employees, year-end 6,365 6,481 5,677
Number of employees, average 6,510 6,108 5,687
Wages and salaries, incl. bonus payments, EUR
million 249.9 256.9 234.1
Geographically, 65% of Ahlstrom's employees were located in Europe,
25% in North America, and 10% in the rest of the world. With 25% of
the total workforce, the USA has the largest percentage of employees,
followed by France with 19%, Italy with 15%, Finland with 11% and
Germany with 9%.
In 2008, 56% of Ahlstrom's employees worked within the Fiber
Composites segment, 38% in the Specialty Papers segment and 6% in
other operations.
ANNUAL GENERAL MEETING
Ahlstrom Corporation's Annual General Meeting of Shareholders (AGM)
was held on April 2, 2008. The key resolutions of the AGM are
summarized below.
The AGM resolved to distribute a dividend of EUR 1.00 per share for
the fiscal year of 2007. The AGM approved the financial statements
and consolidated financial statements and discharged the members of
the Board of Directors and the CEO from liability for the financial
period from January 1 to December 31, 2007.
PricewaterhouseCoopers Oy (PwC) was elected as Ahlstrom's auditor as
recommended by the Audit Committee. PricewaterhouseCoopers Oy (PwC)
has designated Authorized Public Accountant Eero Suomela as auditor
in charge.
The AGM confirmed the number of Board members unchanged at seven.
Thomas Ahlström, Sebastian Bondestam, Jan Inborr, Bertel Paulig,
Peter Seligson and Willem F. Zetteler were re-elected as members of
the Board of Directors and Martin Nüchtern was elected as a new
member as proposed by the Compensation and Nomination Committee of
the Board. The term of the Board of Directors will expire at the
close of the next Annual General Meeting.
The AGM authorized the Board of Directors to repurchase a maximum of
4,500,000 Ahlstrom shares. The shares may be repurchased only through
public trading at the prevailing market price by using unrestricted
shareholders' equity.
The AGM also authorized the Board of Directors to distribute a
maximum of 4,500,000 own shares held by the Company. The Board of
Directors is authorized to decide to whom and in which order the
shares will be distributed. The shares may be used as consideration
in acquisitions and in other arrangements as well as to implement the
Company's share-based incentive plans in the manner and to the extent
decided by the Board of Directors. The Board of Directors has also
the right to decide on the distribution of the shares in public
trading for the purpose of financing possible acquisitions.
The authorizations are valid for 18 months from the close of the
Annual General Meeting but will, however, expire at the close of the
next Annual General Meeting, at the latest.
RISK MANAGEMENT
Based on a risk assessment made in the Group, the risks identified
are described below.
Market risk is related to the highly competitive fiber-based
materials markets. Long term supply and demand imbalances could drive
down prices in the market and have an adverse effect on the Group's
business.
Economic cycles impact the demand for, and price of, end-use products
in the industries that Ahlstrom serves, as well as the development of
Ahlstrom's raw material prices. Ahlstrom is mainly exposed to
cyclical changes in the following end-use industries: building,
automotive and marine industries, where demand has declined
significantly during 2008. On the other hand, demand in the food,
packaging, medical and energy industries wherein Ahlstrom has a
strong presence, are more stable over the cycles.
Wood pulp prices are subject to substantial cyclical fluctuations.
This was evidenced by increases in market prices in early 2008,
followed by price decreases at the end of the year. Similarly
Ahlstrom's energy costs are subject to significant variations, and
lately have shown substantial decreases due to the significant
decline of oil prices. Purchasing prices from suppliers are, to a
certain extent, reflected in Ahlstrom's customer sales prices, and
typically prices are adjusted with a delay.
Ahlstrom's ability to utilize its production capacity efficiently may
be affected by variations in customer demand or interruptions in
production. A variety of conditions may cause customers to reduce,
delay or cancel anticipated or confirmed orders. In the fourth
quarter this risk materialized, and Ahlstrom had to take market
related downtime due to the unstable economic environment.
In recent years, Ahlstrom has been actively pursuing a global growth
strategy, which has included a number of organic growth investments
and acquisitions. These include risks of e.g. adverse regulatory
conditions, commercial objectives not achieved, retention of key
staff, anticipated synergies and cost savings being delayed or not
being achieved, and higher than anticipated costs of planned
expansion projects. In 2008, additional costs were incurred due to
several ramp-ups and the integration of acquisitions.
Ahlstrom's main financial risks are related to interest rates and
foreign exchange. In 2008, interest expenses increased due to the
increase in net debt. The foreign exchange rates, mainly USD had a
negative impact on Ahlstrom's net sales of EUR 61.3 million. The
profitability, however, is not affected to the same extent since
sales and costs denominated in the same currency partly offset each
other. The net currency exposure is hedged up to three months.
Due to the currency hedging policy of the Group, no material foreign
exchange losses were incurred in 2008. However, hedging costs
increased due to the volatility caused by the financial crisis.
Ahlstrom will provide more detailed information on its risk
management in the Annual Report 2008.
SUSTAINABILITY
Ahlstrom is committed to sustainable development. For Ahlstrom,
sustainability means responsibility towards the environment and
people, and running of its business in a respectable way. Ahlstrom
reports according to the G3 guidelines issued by the Global Reporting
Initiative (GRI).
In its approach to management of its health, safety, environmental
obligations and asset protection (HSEA), Ahlstrom applies a
continuous improvement model. This model is applied to all phases of
the life cycle of Ahlstrom's products: from product development,
through raw material sourcing, production operations, product
delivery and ultimate disposal or recycle.
Climate change will be the biggest single factor for changing the
world's economy in the coming years, and Ahlstrom has formulated its
strategy in both mitigating and adapting to the climate change.
In 2008, Ahlstrom invested approximately EUR 2.2 million for
environmental improvements. Following its climate change mitigation
strategy, another EUR 4.0 million was directed towards energy
reduction projects. The focus areas for these investments were energy
efficiency and associated CO2 emissions reduction. In 2008,
Ahlstrom's improving trend in energy efficiency continued for the
third year in a row. In 2008, CO2 emissions decreased by 9.2% over
2007 totals.
Funds were directed also to wastewater treatment improvements, water
conservation, and ambient emissions reductions of NOx and
particulate. In addition to environmental investments, Ahlstrom
invested EUR 4.6 million in the area of health and safety
improvements and assets protection during 2008.
Following its commitment to Sustainable Forestry Management (SFM),
Ahlstrom certified seven plants for Chain-of-Custody in 2008, and
will continue to certify more plants in 2009. Ahlstrom believes that
following the SFM will have a vast potential in battling the climate
change.
Ahlstrom believes that there are no material issues regarding
compliance with applicable environmental laws or regulations at any
of its sites. The company continuously monitors regulatory
developments worldwide. At this time, Ahlstrom does not foresee any
prospective environmental, health or safety regulatory change that
would have a material impact on Ahlstrom's operations or product
offerings.
Consistent with its standard practice, Ahlstrom will provide more
detailed information on Sustainability in its Annual Report 2008.
SHARES AND SHARE CAPITAL
Ahlstrom's share is listed on the NASDAQ OMX Helsinki. Ahlstrom has
one series of shares. The share is classified under the Materials
sector and the trading code is AHL1V.
During 2008, a total of 6.1 million Ahlstrom shares were traded for a
total of EUR 89.8 million. The lowest trading price during the review
period was EUR 6.51 and the highest EUR 18.78. The closing price on
December 31, 2008 was EUR 6.65 and market capitalization was EUR 310
million.
Equity per share of Ahlstrom Group was EUR 13.46 at the end of the
review period (December 31, 2007: EUR 15.35).
At the end of the review period, there were no outstanding options
entitling to subscription of Ahlstrom shares.
OUTLOOK FOR 2009
In 2009, the market environment is anticipated to be very challenging
with a very short-term visibility of the demand for Ahlstrom
products. Therefore, Ahlstrom has decided to change its disclosure
policy as from the beginning of 2009. During a period of major
uncertainty, the outlook includes forecasts of the business and
market environment only.
According to current estimates, the demand for Ahlstrom products will
vary significantly by product line and depending on the general
development of the customer industries. The food packaging, medical
applications and energy industries are anticipated to be less
sensitive to the current uncertainty, and for Ahlstrom, this is
anticipated to reflect on the demand for e.g. food and medical
nonvowens, specialty papers for food packaging and wrapping, crepe
papers as well as glassfiber reinforcements for the windmill
industry.
On the other hand, the uncertainty of the global economy, and
especially the decline of the transportation and construction
industries, is expected to impact the demand for such Ahlstrom
products as filtration media for the automotive and construction
industries, nonwovens and specialty papers for the building industry,
glassfiber reinforcements for the marine industry as well as
different kinds of nonwoven wipes.
The prices for Ahlstrom's main raw materials, wood pulp and rayon,
and the price of energy, are anticipated to continue at the current
low level, based on the decreasing price trend that started towards
the end of 2008.
In the current operating environment, Ahlstrom will focus on
maximizing its cash flow in 2009, including a lower capital
expenditure than in 2008.
EVENTS AFTER THE BALANCE SHEET DATE
Change in the Corporate Executive Team
On January 9, 2009, Rami Raulas, born 1961, M.Sc. (Econ.), was
appointed Senior Vice President, Sales & Marketing and member of the
Corporate Executive Team effective as of February 1, 2009. He joins
Ahlstrom from Meadville Enterprises (HK) Ltd.
PROPOSAL FOR THE DISTRIBUTION OF PROFITS
The distributable funds in the balance sheet of Ahlstrom Corporation
as per December 31, 2008 amount to EUR 645,356,691.77.
The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.45 per share be paid for the fiscal year that ended
on December 31, 2008 from the retained earnings. As per February 4,
2009, the number of shares of the Company amounts to 46,670,608 based
on which the maximum amount to be distributed as dividend would be
EUR 21,001,773.60.
The dividend will be paid to shareholders registered in the Register
of Shareholders held by Euroclear Finland Ltd (former Finnish Central
Securities Depository Ltd) on the record date, March 30, 2009. The
Board proposes that the dividend be paid on April 6, 2009.
In addition, the Board of Directors proposes that EUR 35,000 be
reserved to be used for the public good at the discretion of the
Board.
This financial statement bulletin has been prepared in accordance
with the International Financial Reporting Standards (IFRS).
Comparable figures refer to the same period last year unless
otherwise stated.
This report contains certain forward-looking statements that reflect
the present views of the company's management. Due to the nature of
these statements, they contain uncertainties and risks and are
subject to changes in the general economic situation and in the
company's business.
Helsinki, February 5, 2009
Ahlstrom Corporation
Board of Directors
ADDITIONAL INFORMATION
Jan Lång, President & CEO, tel. +358 (0)10 888 4700
Jari Mäntylä, CFO, tel. +358 (0)10 888 4768
Ahlstrom's President & CEO Jan Lång will present the financial
statements in Finnish in a news conference in Helsinki on February 5,
2009 at 9.00 a.m. Finnish time. The conference for media and analysts
will take place at Palace Gourmet banquet floor, address Eteläranta
10, floor 10. Welcome.
In addition, a conference call for analysts and investors will be
held in English on February 5, 2009 at 1.30 p.m. Finnish time. The
discussion will again be led by President & CEO Jan Lång. To
participate in the teleconference, please dial +358 (0)9 2313 9202 a
few minutes before the call. Use the title of the conference call:
Ahlstrom conference call. A replay number is available until February
12, 2009. The number for the replay is +358 (0)9 2314 4681, access
code: 823275.
The presentation material will be available at www.ahlstrom.com >
Investors > IR presentations on February 5, 2009 after the financial
statements bulletin has been published.
AHLSTROM'S FINANCIAL INFORMATION IN 2009
Ahlstrom Corporation will publish its financial information in 2009
as follows:
Annual report 2008: Week 12
Interim report January - March: Wednesday, April 29
Interim report January - June: Friday, July 24
Interim report January - September: Wednesday, October 28
Ahlstrom's Annual General Meeting will be held on Wednesday, March
25, 2009 at 1.00 p.m. at the Finlandia Hall, Mannerheimintie 13 e,
Helsinki.
Distribution:
NASDAQ OMX Helsinki
www.ahlstrom.com
Main media
Ahlstrom in brief
Ahlstrom is a global leader in the development, manufacture and
marketing of high performance fiber-based materials. Nonwovens and
specialty papers, made by Ahlstrom, are used in a large variety of
everyday products, such as filters, wipes, flooring, labels, and
tapes. Based upon its unique fiber expertise and innovative approach,
the company has a strong market position in several business areas in
which it operates. Ahlstrom's 6,400 employees serve customers via
sales offices and production facilities in more than 20 countries on
six continents. In 2008, Ahlstrom's net sales amounted to EUR 1.8
billion. Ahlstrom's share is quoted on the NASDAQ OMX Helsinki. The
company website is at www.ahlstrom.com.
APPENDIX
Consolidates financial statements 2008
APPENDIX
CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
This report has been prepared in accordance with the International
Financial Reporting Standards (IFRS) and the accounting policies set
out in IAS 34 (Interim Financial reporting) as adopted by EU and in
the Group's Financial Statements for 2008.
Application of amended or new IFRS-standards as of January 1,
2008
The Group has adopted the following amended standards and new
interpretations as of January 1, 2008:
- Amendments to IAS 39 and IFRS 7: Reclassification of Financial
Assets
- Amendments to IAS 39 and IFRS 7: Reclassification of Financial
Assets
- Effective date and Transition (not yet endorsed by EU)
- IFRIC 11: IFRS 2 Group and Treasury Share Transactions
- IFRIC 12: Service Concession Arrangements (not yet endorsed by EU)
- IFRIC 14: IAS 19 The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their interaction
The above mentioned interpretations do not have an effect on the
consolidated financial statements.
Financial statements bulletin is based on the audited Financial
Statements of 2008.
INCOME STATEMENT Q4 Q4 Q1-Q4 Q1-Q4
Eur million 2008 2007 2008 2007
Net sales 419.0 462.5 1,802.4 1,760.8
Other operating income 5.6 2.3 18.7 20.4
Expenses -419.8 -464.5 -1,694.2 -1,655.5
Depreciation, amortization and
impairment
charges -40.2 -35.0 -112.3 -99.8
Operating profit / loss -35.4 -34.7 14.6 25.8
Net financial expenses -13.8 -8.6 -34.2 -25.6
Share of loss of associated companies -0.3 0.1 -1.1 -0.1
Profit / loss before taxes -49.5 -43.2 -20.6 0.2
Income taxes 12.4 14.2 4.5 1.2
Profit / loss for the period -37.0 -29.0 -16.1 1.3
Attributable to
Equity holders of the parent -37.0 -29.6 -17.9 0.5
Minority interest - 0.6 1.8 0.8
Basic earnings per share, EUR -0.79 -0.64 -0.38 0.01
Diluted earnings per share, EUR -0.79 -0.64 -0.38 0.01
BALANCE SHEET Dec 31, Dec 31,
Eur million 2008 2007
ASSETS
Non-current assets
Property, plant and equipment 745.7 747.7
Goodwill 169.1 179.7
Other intangible assets 51.6 58.2
Investments in associated companies 11.4 12.4
Other investments 0.2 0.2
Other receivables 15.6 16.9
Deferred tax assets 40.4 29.7
Total non-current assets 1,033.9 1,044.8
Current assets
Inventories 252.5 246.3
Trade and other receivables 356.2 389.3
Income tax receivables 6.3 3.9
Other investments 0.0 5.8
Cash and cash equivalents 58.2 21.3
Total current assets 673.2 666.5
Total assets 1,707.0 1,711.4
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent 628.1 716.4
Minority interest 0.0 36.0
Total equity 628.1 752.4
Non-current liabilities
Interest-bearing loans and borrowings 188.7 202.7
Employee benefit obligations 84.6 87.7
Provisions 4.4 4.6
Other liabilities 0.2 0.6
Deferred tax liabilities 16.5 27.6
Total non-current liabilities 294.4 323.2
Current liabilities
Interest-bearing loans and borrowings 468.1 315.5
Trade and other payables 293.3 273.1
Income tax liabilities 3.5 9.1
Provisions 19.7 38.1
Total current liabilities 784.5 635.8
Total liabilities 1,078.9 959.0
Total equity and liabilities 1,707.0 1,711.4
STATEMENT OF CHANGES IN EQUITY
1) Issued capital
2) Share premium
3) Non-restricted equity reserve
4) Hedging reserve
5) Translation reserve
6) Retained earnings
7) Minority interest
8) Total equity
Attributable to equity holders of the
parent
Eur million 1) 2) 3) 4) 5) 6) 7) 8)
Equity at December
31, 2006 68.5 209.3 0.5 0.1 -3.1 490.4 0.8 766.6
Cash flow hedges,
net of tax:
Gains and losses
taken to equity - - - -0.1 - - - -0.1
Translation
differences - - - - -19.9 - - -19.9
Gains and losses
from hedge of net
investments in
foreign operations,
net of tax - - - - 7.5 - - 7.5
Minority increase
Ahlstrom-VCP - - - - - - 34.6 34.6
Other changes - - - - - 0.0 0.0 -0.1
Income for the
period recognized
directly in equity - - - -0.1 -12.4 0.0 34.5 22.0
Profit for the
period - - - - - 0.5 0.8 1.3
Total recognized
income and expense
for the period - - - -0.1 -12.4 0.5 35.3 23.3
Dividends paid and
other - - - - - -46.6 -0.1 -46.7
Share options
exercised 1.5 - 7.7 - - - - 9.2
1.5 - 7.7 - - -46.6 -0.1 -37.5
Equity at December
31, 2007 70.0 209.3 8.3 0.0 -15.5 444.3 36.0 752.4
Equity at December
31, 2007 70.0 209.3 8.3 0.0 -15.5 444.3 36.0 752.4
Cash flow hedges,
net of tax:
Gains and losses
taken to equity - - - -1.2 - - - -1.2
Translation
differences - - - - -40.0 - 2.9 -37.1
Gains and losses
from hedge of net
investments in
foreign operations,
net of tax - - - - 6.4 - - 6.4
Purchases of
minority interest - - - - - 11.3 -40.7 -29.4
Other changes - - - - - 0.0 - -0.0
Income for the
period recognized
directly in equity - - - -1.2 -33.6 11.2 -37.8 -61.4
Profit / loss for
the period - - - - - -17.9 1.8 -16.1
Total recognized
income and expense
for the period - - - -1.2 -33.6 -6.7 -36.0 -77.5
Dividends paid and
other - - - - - -46.7 - -46.7
Equity at December
31, 2008 70.0 209.3 8.3 -1.2 -49.1 390.9 0.0 628.1
STATEMENT OF CASH FLOWS Q4 Q4 Q1-Q4 Q1-Q4
Eur million 2008 2007 2008 2007
Cash flow from operating activities
Profit / loss for the period -37.0 -29.0 -16.1 1.3
Adjustments, total 33.2 25.9 131.5 102.4
Changes in net working capital 38.1 0.8 47.2 -35,6 *)
Change in provisions 5.1 27.5 -20.0 10,4 *)
Financial items -2.4 -6.9 -16.8 -15.1
Taxes paid -5.4 -8.6 -23.4 -19.7
Net cash from operating activities 31.5 9.8 102.4 43.9
Cash flow from investing activities
Acquisition of Group companies -0.1 -1.4 -39.0 -217.2
Purchases of intangible and tangible
assets -39.7 -45.4 -131.2 -153.9
Other investing activities 0.5 4.2 16.9 13.1
Net cash from investing activities -39.2 -42.6 -153.4 -358.1
Cash flow from financing activities
Share issue - - - 9.2
Dividends paid - - -46.7 -46.8
Borrowings and other financing
activities 43.1 37.4 136.3 353.1
Net cash from financing activities 43.1 37.4 89.7 315.6
Net change in cash and cash equivalents 35.3 4.5 38.7 1.4
Cash and cash equivalents at beginning
of period 24.3 17.1 21.3 20.1
Foreign exchange adjustment -1.4 -0.3 -1.7 -0.2
Cash and cash equivalents at end of
period 58.2 21.3 58.2 21.3
*) Includes EUR -20.8 million payment to the pension fund to cover
approximately half of the historical deficit of the defined benefit
pension plan in the United Kingdom in Q1 2007.
KEY FIGURES Q4 Q4 Q1-Q4 Q1-Q4
2008 2007 2008 2007
Operating profit, % -8.4 -7.5 0.8 1.5
Operating profit (excluding
non-recurring items), % -3.3 2.4 2.0 3.8
Return on capital employed (ROCE), % -10.8 -10.7 1.4 2.5
ROCE (excluding non-recurring items),
% -4.1 3.6 3.0 6.3
Return on equity (ROE), % -22.4 -15.1 -2.3 0.2
Interest-bearing net liabilities, EUR
million 598.7 491.1 598.7 491.1
Equity ratio, % 36.8 44.0 36.8 44.0
Gearing ratio, % 95.3 65.3 95.3 65.3
Earnings per share, EUR -0.79 -0.64 -0.38 0.01
Earnings per share, diluted, EUR -0.79 -0.64 -0.38 0.01
Equity per share, EUR 13.46 15.35 13.46 15.35
Cash earnings per share, EUR 0.67 0.21 2.19 0.94
Average number of shares during the
period, 1000's 46,671 46,671 46,671 46,476
Number of shares at the end of the
period, 1000's 46,671 46,671 46,671 46,671
Capital expenditure, EUR million 37.5 39.5 128.0 154.7
Capital employed, at the end of the
period, EUR million 1,285.0 1,270.6 1,285.0 1,270.6
Number of employees, average 6,427 6,512 6,510 6,108
CHANGES OF PROPERTY, PLANT AND
EQUIPMENT Q1-Q4 Q1-Q4
Eur million 2008 2007
Book value at Jan 1 747.7 601.7
Acquisitions through business combinations 3.9 116.8
Additions 118.7 150.3
Disposals -3.7 -1.2
Depreciations and impairment charges -97.3 -93.3
Translation adjustment and other changes -23.5 -26.5
Book value at end of the period 745.7 747.7
TRANSACTIONS WITH RELATED PARTIES Q1-Q4 Q1-Q4
Eur million 2008 2007
Transactions with associated companies
Sales and interest income 1.0 1.3
Purchases of goods and services -3.6 -5.0
Trade and other receivables 2.6 0.1
Trade and other payables 0.3 0.5
Interest-bearing loans and borrowings - 0.1
Market prices have been used in transactions with associated
companies.
OPERATING LEASES Dec 31, Dec 31,
Eur million 2008 2007
Current portion 6.9 5.3
Non-current portion 17.1 14.9
Total 24.0 20.3
CONTINGENT LIABILITIES Dec 31, Dec 31,
Eur million 2008 2007
For own liabilities
Other loans
Amount of loans 0.5 0.9
Book value of pledges 0.5 1.0
For other own commitments
Guarantees 38.7 23.8
For commitments of associated companies
Guarantees 4.2 6.3
Capital expenditure commitments 36.2 32.4
Other contingent liabilities 4.7 4.7
Acquisitions in 2008
In February, Ahlstrom acquired the Friend Group Inc., which consists
of West Carrollton Parchment Company and West Carrollton Converting
Company. The Friend Group has two sites in West Carrollton serving
mainly the food packaging market in the USA. West Carrollton is a
producer of vegetable parchment and has parchmentizing and converting
operations located in West Carrollton, Ohio, the USA.
Ahlstrom West Carrollton has been incorporated in Ahlstrom's accounts
as part of Specialty Papers segment since February 1, 2008.
Management estimates that if the acquisition had occurred on January
1, 2008, Ahlstrom Group's net sales and profit for the period would
not have changed materially.
The acquisition price includes professional fees amounting to EUR 0.1
million. The goodwill that arose from the acquisition of the shares
of the Friend Group Inc. reflects the synergy benefits resulting from
the expanded product offering to the Technical Papers' vegetable
parchment business and provides synergies to our existing business as
well as growth opportunities.
The acquisition had the following effect on the Group's assets and
liabilities:
ACQUISITIONS OF BUSINESSES Book values Fair values
before the entered in
Eur million consolidation consolidation
Property, plant and equipment 3.3 3.6
Intangible assets 0.0 1.3
Inventories 3.8 3.6
Trade and other receivables 2.7 2.6
Cash and cash equivalents - -
Assets, total 9.7 11.1
Deferred tax liabilities 0.4 0.5
Employee benefit obligations 0.4 0.6
Trade and other payables 3.1 3.4
Liabilities, total 3.9 4.5
Net assets 5.8 6.6
Goodwill arising in acquisition - 3.2
Acquisition price paid (in cash) - 9.8
Exchange rate differences - -0.2
Net cash outflow - 9.6
Ahlstrom has acquired the remaining 40% of the joint venture formed
in September 2007 with Votorantim Celulose e Papel (VCP). The price
for this acquisition was EUR 28.0 million.
In addition, Ahlstrom has acquired the shares from the minority
shareholders of two sales companies amounting to EUR 1.4 million.
QUARTERLY
DATA Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Eur million 2008 2008 2008 2008 2007 2007 2007 2007
Net sales 419.0 451.2 465.9 466.2 462.5 444.9 436.9 416.5
Other
operating
income * 4.3 5.8 2.4 2.3 2.0 3.1 1.7 2.6
Expenses * -412.2 -421.4 -425.0 -425.9 -429.0 -407.7 -396.5 -379.9
Depreciation,
amortization,
impairment
charges * -24.8 -24.1 -23.9 -24.1 -24.5 -24.1 -21.0 -19.6
Non-recurring
items -21.7 -0.2 -0.1 0.8 -45.7 -0.1 - 3.8
Operating
profit / loss -35.4 11.3 19.4 19.3 -34.7 16.1 21.0 23.3
Net financial
expenses -13.8 -7.1 -4.7 -8.6 -8.6 -9.7 -4.3 -3.0
Share of
profit / loss
of
associated
companies -0.3 -0.7 -0.6 0.5 0.1 0.2 -0.3 -0.1
Profit / loss
before taxes -49.5 3.5 14.2 11.2 -43.2 6.7 16.4 20.3
Income taxes 12.4 -1.0 -3.6 -3.4 14.2 -1.6 -4.5 -6.9
Profit / loss
for the
period -37.0 2.5 10.6 7.8 -29.0 5.0 11.9 13.4
Attributable
to
Equity
holders of
the parent -37.0 2.0 9.9 7.2 -29.6 4.9 11.9 13.3
Minority
interest - 0.5 0.7 0.6 0.6 0.1 0.0 0.0
Operating
profit * -13.7 11.5 19.5 18.4 11.0 16.2 21.0 19.6
Operating
profit, % * -3.3 2.5 4.2 4.0 2.4 3.6 4.8 4.7
* Excluding
non-recurring
items
QUARTERLY DATA BY
SEGMENT Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Eur million 2008 2008 2008 2008 2007 2007 2007 2007
Net sales
Fiber Composites 229.1 249.3 257.0 252.0 249.7 249.8 235.5 206.4
Specialty Papers 191.6 204.0 209.7 217.0 214.4 196.3 202.7 211.4
Other operations and
eliminations -1.7 -2.1 -0.7 -2.8 -1.5 -1.2 -1.3 -1.3
Group total 419.0 451.2 465.9 466.2 462.5 444.9 436.9 416.5
Operating profit /
loss
Fiber Composites -24.7 7.7 16.8 15.5 2.7 13.5 17.3 15.2
Specialty Papers -6.5 6.5 4.7 5.5 -33.6 2.7 5.4 13.0
Other operations and
eliminations -4.2 -2.9 -2.0 -1.7 -3.7 -0.1 -1.7 -4.9
Group total -35.4 11.3 19.4 19.3 -34.7 16.1 21.0 23.3
Operating profit / loss
excluding non-recurring
items
Fiber Composites -4.5 7.4 15.3 15.0 15.7 14.1 17.3 13.4
Specialty Papers -4.6 6.4 5.7 5.2 -2.8 2.7 5.4 8.6
Other operations and
eliminations -4.6 -2.3 -1.6 -1.7 -1.9 -0.7 -1.7 -2.5
Total -13.7 11.5 19.5 18.4 11.0 16.2 21.0 19.6
Non-recurring items -21.7 -0.2 -0.1 0.8 -45.7 -0.1 - 3.8
Group total -35.4 11.3 19.4 19.3 -34.7 16.1 21.0 23.3
KEY FIGURES
QUARTERLY Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Eur million 2008 2008 2008 2008 2007 2007 2007 2007
Net sales 419.0 451.2 465.9 466.2 462.5 444.9 436.9 416.5
Operating
profit / loss -35.4 11.3 19.4 19.3 -34.7 16.1 21.0 23.3
Operating
profit / loss
(excl. non
recurring
items) -13.7 11.5 19.5 18.4 11.0 16.2 21.0 19.6
Profit / loss
before taxes -49.5 3.5 14.2 11.2 -43.2 6.7 16.4 20.3
Profit / loss
before taxes
(excl. non
recurring
items) -27.8 3.7 14.2 10.4 2.5 6.7 16.4 16.5
Profit / loss
for the
period -37.0 2.5 10.6 7.8 -29.0 5.0 11.9 13.4
Gearing
ratio, % 95.3 84.8 76.0 64.4 65.3 60.1 50.9 24.3
Return on
capital
employed
(ROCE), % -10.8 3.9 6.3 6.4 -10.7 5.5 8.0 10.0
ROCE
(excluding
non-recurring
items), % -4.1 3.9 6.3 6.2 3.6 5.5 8.0 8.4
Earnings per
share, EUR -0.79 0.04 0.22 0.15 -0.64 0.10 0.26 0.29
Earnings per
share
(excluding
non-
recurring
items), EUR -0.41 0.05 0.21 0.14 0.02 0.11 0.25 0.24
Cash earnings
per share,
EUR 0.67 0.53 0.12 0.87 0.21 0.79 0.20 -0.26
Average
number of
shares during
the period,
1000's 46,671 46,671 46,671 46,671 46,671 46,671 46,636 45,918
CALCULATION OF KEY FIGURES
Interest-bearing net liabilities
Interest-bearing loans and borrowings - Cash and cash equivalents -
Other investments (current)
Equity ratio, %
Total
equity/ x
100
Total assets - Advances received
Gearing ratio, %
Interest-bearing net liabilities/ x
100
Total equity
Return on equity (ROE), %
Profit (loss) for the period/ x
100
Total equity (annual average)
Return on capital employed (ROCE), %
Profit (loss) before taxes + Financing
expenses/ x 100
Total assets (annual average) - Non-interest bearing liabilities
(annual average)
Earnings per share, EUR
Profit (loss) for the period attributable to equity holders of
the parent/
Average number of shares during the period
Cash earnings per share, EUR
Net cash from operating activities/
Average number of shares during the period
Equity per share, EUR
Equity attributable to equity holders of the parent/
Number of shares at the end of the period
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