2011-10-24 11:00:00 CEST
2011-10-24 11:00:54 CEST
REGULATED INFORMATION
Ahlstrom - Interim report (Q1 and Q3)
Ahlstrom interim report January-September 2011: Decline in demand impacted performance
Ahlstrom Corporation STOCK EXCHANGE RELEASE 24.10.2011 at 12.00
Continuing operations July-September 2011 compared with July-September 2010:
* Net sales EUR 389.7 million (EUR 413.0 million)
* Operating loss EUR 17.3 million (EUR 14.1 million profit) and operating
profit excluding non-recurring items EUR 8.0 million (EUR 13.8 million).
* Operating margin excluding non-recurring items 2.0% (3.3%).
* Loss before taxes EUR 24.4 million (EUR 5.7 million profit).
* Earnings per share EUR -0.47 (EUR 0.00).
Highlights in July-September 2011
* Ahlstrom signed in August an agreement to divest its Home and Personal
business area to Suominen Corporation. The total value of the transaction is
approximately EUR 170 million.
Continuing operations January-September 2011 compared with January-September
2010:
* Net sales EUR 1,235.9 million (EUR 1,219.6 million).
* Operating profit EUR 24.3 million (EUR 55.5 million) and operating profit
excluding non-recurring items EUR 48.0 million (EUR 54.0 million).
* Operating margin excluding non-recurring items 3.9% (4.4%).
* Profit before taxes EUR 4.1 million (EUR 33.2 million).
* Earnings per share EUR -0.17 (EUR 0.33).
Events after the review period: Profit improvement program
* On October 18, 2011, Ahlstrom announced it will implement a profit
improvement program to address its underperforming businesses. The program
aims to generate an annual profit improvement of approximately EUR 15
million and may affect about 400 employees. As part of the program,
initiatives in Karhula, Turin and Osnabrück were announced.
Outlook for 2011
* On October 18, 2011 Ahlstrom updated its outlook for this year. Net sales
from continuing operations are expected to be EUR 1,565-1,645 million.
Operating profit excluding non-recurring items from continued operations is
expected to be EUR 46-56 million.
Jan Lång, President & CEO:
- The divestment of the Home and Personal business area to Suominen was an
important milestone in our strategy implementation and enables us to strengthen
and expand our value added businesses. Despite the uncertain and turbulent
business environment we are also making good progress in the development
programs we are implementing to reinforce the way we manage the business.
- Our main markets did not recover in September as we had expected. We
anticipate that the market slowdown will continue, and as a result we changed
our guidance for 2011 earlier this month.
- We are taking firm action to address our underperforming businesses and to
streamline further our cost base to gain efficiencies in the supply chain
structure. This unfortunately also leads to personnel reductions, which are
necessary in order for us to remain competitive and profitable.
Key figures from continuing operations
EUR million Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Net sales 389.7 413.0 -5.6 1,235.9 1,219.6 1.3
Operating profit -17.3 14.1 -222.4 24.3 55.5 -56.2
% of net sales -4.4 3.4 2.0 4.5
Operating profit excl.
NRI 8.0 13.8 -42.3 48.0 54.0 -11.1
% of net sales 2.0 3.3 3.9 4.4
Profit/Loss before
taxes -24.4 5.7 - 4.1 33.2 -87.6
Profit for the period -20.2 1.5 - -3.3 19.7 -116.9
Earnings per share -0.47 0.00 -0.17 0.33
Return on capital
employed, % -8.6 6.0 3.7 8.1
Capital expenditure 13.2 15.8 -16.5 30.5 27.0 12.9
Number of personnel,
at the end of period 5,169 5,383 -4.0 5,169 5,383 -4.0
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The Home and Personal business area is reported separately as discontinued
operations.
Operating environment
The overall demand for several of our products continued to decline after the
summer holiday season. The demand for specialty paper materials, such as
flexible packaging and release liners, as well as transportation filtration
materials fell in the review period. The market for specialty reinforcements
used by the wind energy industry in Ahlstrom's main markets continued to
decline.
The demand for materials used by the beverage and food packaging industries,
such as tea bags and baking papers, rose. The demand for wallcover materials and
metalized labels continued to grow in the quarter, while demand for flooring
materials was stable.
Cost inflation related to the main raw materials used by Ahlstrom started to
ease in the review period. However, the prices of many key raw material
components were still at a higher level than in the comparison period. Pulp
prices declined in the quarter, while prices of synthetic fibers, such as
polyester and polypropylene, and chemicals stabilized after peaking in the
previous quarter.
In March, the European Commission imposed a lower level antidumping duty on
imports of certain glassfiber products originating from the People's Republic of
China to the European Union. This had a negative impact on European glassfiber
manufacturers.
Development of net sales from continuing operations
Net sales by business
area Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Building and Energy 67.0 66.3 1.0 222.6 196.7 13.2
Filtration 78.7 87.4 -9.9 244.8 254.9 -4.0
Food and Medical 91.5 88.7 3.1 275.8 262.4 5.1
Label and Processing 163.6 182.2 -10.2 528.4 542.4 -2.6
Other functions* and
eliminations -11.1 -11.6 -35.7 -36.8
Total net sales 389.7 413.0 -5.6 1,235.9 1,219.6 1.3
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* Other functions include financing and taxation-related items, as well as
earnings and costs belonging to holding and sales companies. The Home and
Personal business area is reported separately as discontinued operations.
July-September 2011 compared with July-September 2010
Ahlstrom's third-quarter 2011 net sales decreased 5.6% to EUR 389.7 million,
compared with EUR 413.0 million in the third quarter 2010.
Breakdown of the net sales change:
Change, %
------------------------------------
Q3/2010
Price and mix 0.4
Currency -2.4
Volume -0.7
Divestments and new assets -2.9
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Q3/2011 -5.6
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Total sales volumes in tons fell 3.6% from the comparison period. The decline
effected sales volumes in the Filtration (-6.8%) and Label and Processing (-
6.5%) business areas, whereas Building and Energy (+3.7%) and Food and Medical
(+7.5%) reported an increase. Total sales volumes excluding the impact of
divestments and new assets decreased by 1.9%.
January-September 2011 compared with January-September 2010
Net sales in January-September 2011 increased 1.3% to EUR 1,235.9 million,
compared with EUR 1,219.6 million in January-September 2010.
Breakdown of the net sales change:
Change, %
------------------------------------
Q1-Q3/2010
Price and mix 4.5
Currency -1.6
Volume 1.4
Divestments and new assets -3.0
------------------------------------
Q1-Q3/2011 1.3
------------------------------------
Result and profitability from continuing operations
Financial result by
segment Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Building and Energy
Operating profit -23.5 0.5 -21.7 0.2
% of net sales -35.1 0.8 -9.7 0.1
Operating profit excl.
NRI -1.0 0.5 0.8 0.2
% of net sales -1.5 0.8 0.4 0.1
Filtration
Operating profit 4.5 7.0 -36.4 18.2 23.9 -23.8
% of net sales 5.7 8.1 7.4 9.4
Operating profit excl.
NRI 4.2 6.8 -38.5 18.5 23.6 -21.7
% of net sales 5.3 7.7 7.5 9.2
Food and Medical
Operating profit 4.2 1.6 157.6 10.0 10.9 -8.6
% of net sales 4.6 1.8 3.6 4.2
Operating profit excl.
NRI 4.3 1.6 164.9 10.1 10.1 -0.4
% of net sales 4.7 1.8 3.7 3.9
Label and Processing
Operating profit -3.7 7.7 -147.3 13.1 27.2 -51.9
% of net sales -2.2 4.2 2.5 5.0
Operating profit excl.
NRI -0.6 6.2 -110.0 14.4 25.7 -43.9
% of net sales -0.4 3.4 2.7 4.7
Other functions* and
eliminations
Operating profit 1.2 -2.8 4.8 -6.7
Ahlstrom Group total
Operating profit/loss -17.3 14.1 -222.4 24.3 55.5 -56.2
% of net sales -4.4 3.4 2.0 4.5
Operating profit excl.
NRI 8.0 13.8 -42.3 48.0 54.0 -11.1
% of net sales 2.0 3.3 3.9 4.4
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*Other functions include financing and taxation-related items, as well as
earnings and costs belonging to holding and sales companies. Home and Personal
business area is reported separately as discontinued operations.
July-September 2011 compared with July-September 2010
Ahlstrom's third-quarter 2011 operating loss was EUR 17.3 million (EUR 14.1
million profit) including non-recurring costs of EUR 25.3 million (EUR 0.3
million gain). Operating profit excluding non-recurring items was EUR 8.0
million (EUR 13.8 million). The most significant non-recurring items in the
third quarter 2011 were the following:
* Building and Energy booked a net non-recurring cost of about EUR 11 million
for the decision to end production of glassfiber and glassfiber mats in
Karhula, Finland.
* Building and Energy booked non-recurring costs of about EUR 11 million for
closing down its hybrid wallcover materials production line in Turin,
Italy.
* Label and Processing booked non-recurring costs of about EUR 3 million for
the planned streamlining measures at its Osnabrück plant in Germany.
There were no significant non-recurring items in the third quarter 2010.
The operating profit was negatively impacted mainly by lower sales volumes. In
addition, the previously increased raw material costs were not fully compensated
by higher selling prices. The ramp-up and commercialization of the teabag
material line in Chirnside and the medical material plant in Mundra, which were
part of the 2007 and 2008 investment program, continued to have a negative
impact on profitability. Improved manufacturing efficiency had a positive impact
on profitability.
Ahlstrom has decided to close the loss-making hybrid wallcover line in Turin in
October 2011.
Ahlstrom's market related downtime in production was unchanged at 8.7% in the
third quarter 2011 from the comparison period.
Loss before taxes was EUR 24.4 million (EUR 5.7 million profit).
The company's deferred tax income amounted to EUR 4.3 million (EUR 4.2 million
income tax).
Loss for the period was EUR 20.2 million (EUR 1.5 million profit). Earnings per
share were EUR -0.47 (EUR 0.00).
January-September 2011 compared with January-September 2010
Ahlstrom's January-September 2011 operating profit was EUR 24.3 million (EUR
55.5 million) including non-recurring costs of EUR 23.7 million (EUR 1.4 million
gain). Operating profit excluding non-recurring items was EUR 48.0 (EUR 54.0
million). The 2010 figure was favorably impacted by a gain of approximately EUR
4.2 million from selling carbon dioxide emission rights. In January-September
2011, the figure was EUR 0.2 million.
The most significant non-recurring items in January-September 2011 in addition
to those booked in the third quarter were the following:
* Label and Processing booked a gain of approximately EUR 1.9 million from the
asset sale of its Ascoli plant in Italy. The plant was closed in 2008.
* Filtration booked a loss of EUR 0.3 million after the flooding at Louveira
in the first quarter.
* In other functions, Ahlstrom booked a gain of EUR 1.0 million related to the
sale of the Wuxi plant in China.
There were no significant non-recurring items during January-September 2010.
Ahlstrom's market related downtime in production in January-September 2011 was
6.6% compared with 8.7% in the comparison period.
Profit before taxes was EUR 4.1 million (EUR 33.2 million).
Income taxes amounted to EUR 7.4 million (EUR 13.5 million).
Loss for the period was EUR 3.3 million (EUR 19.7 million profit). Earnings per
share were EUR -0.17 (EUR 0.33).
Divestment of Home and Personal business area
On August 4, 2011, Ahlstrom signed an agreement to divest its wipes fabrics
business area, Home and Personal, to Suominen Corporation.
Discontinued operations
Following the agreement to divest Home and Personal to Suominen, the segment has
been classified as an asset held for sale and reported separately as
discontinued operations as a result.
In July-September 2011, the profit for the period from discontinued operations
was EUR 1.8 million, compared with EUR 2.6 million in the comparison period.
In January-September 2011, the loss for the period from discontinued operations
was EUR 14.0 million (EUR 5.0 million profit). The 2011 figure includes an
impairment loss and cost to sell of EUR 18.6 million after tax related to the
divestment.
Result including discontinued operations
In July-September 2011, the loss for the period including discontinued
operations was EUR 18.4 million (EUR 4.1 million profit). Earnings per share
were EUR -0.43 (EUR 0.06).
Return on equity (ROE) was -11.7% (2.3%).
In January-September 2011, the loss for the period including discontinued
operations was EUR 17.4 million (EUR 24.7 million profit). Earnings per share
were EUR -0.47 (EUR 0.44).
Return on equity (ROE) was -3.5% (4.8%).
Business Area review
Building and Energy
EUR million Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Net sales 67.0 66.3 1.0 222.6 196.7 13.2
Operating profit -23.5 0.5 - -21.7 0.2 -
% of net sales -35.1 0.8 -9.7 0.1
Operating profit excl.
NRI -1.0 0.5 - 0.8 0.2 -
% of net sales -1.5 0.8 0.4 0.1
RONA, % -70.2 1.4 -21.7 0.1
Sales volumes, 000s
tons 29.9 28.8 3.7 97.6 89.3 9.3
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Net sales in July-September 2011 rose by 1.0% to EUR 67.0 million, compared with
EUR 66.3 million in July-September 2010. Continued sales volume growth in
wallcover materials had a positive impact on net sales. Operating loss excluding
non-recurring items was EUR 1.0 million (EUR 0.5 million profit). The result
continued to be burdened by the costs of the hybrid wallcover line in Turin,
Italy, and lower sales volumes in the wind energy industry. Lowered antidumping
duty on imports of certain glassfiber products from the People's Republic of
China to the European Union had a negative impact on European manufacturers and
also affected the profitability of Building and Energy. Operating loss amounted
to EUR 23.5 million (EUR 0.5 million profit). The 2011 figure includes a non-
recurring cost of EUR 22.5 million for initiatives related to the profit
improvement program announced on October 18, 2011.
In January-September 2011, net sales were EUR 222.6 million (EUR 196.7 million)
and operating profit excluding non-recurring items EUR 0.8 million (EUR 0.2
million).
Filtration
EUR million Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Net sales 78.7 87.4 -9.9 244.8 254.9 -4.0
Operating profit 4.5 7.0 -36.4 18.2 23.9 -23.8
% of net sales 5.7 8.1 7.4 9.4
Operating profit excl.
NRI 4.2 6.8 -38.5 18.5 23.6 -21.7
% of net sales 5.3 7.7 7.5 9.2
RONA, % 11.1 14.8 14.8 17.5
Sales volumes, 000s
tons 27.0 28.9 -6.8 84.6 86.6 -2.3
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Net sales in July-September 2011 decreased by 9.9% to EUR 78.7 million, compared
with EUR 87.4 million in July-September 2010 as lower sales volumes, adverse
currency effects and divested businesses more than offset higher selling prices.
However, transportation filtration sales in South America had a positive effect
on net sales. Operating profit excluding non-recurring items fell to EUR 4.2
million (EUR 6.8 million)due to the lower sales volumes . Operating profit
amounted to EUR 4.5 million (EUR 7.0 million).
In January-September 2011, net sales were EUR 244.8 million (EUR 254.9 million)
and operating profit excluding non-recurring items EUR 18.5 million (EUR 23.6
million).
Food and Medical
EUR million Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Net sales 91.5 88.7 3.1 275.8 262.4 5.1
Operating profit 4.2 1.6 157.6 10.0 10.9 -8.6
% of net sales 4.6 1.8 3.6 4.2
Operating profit excl.
NRI 4.3 1.6 164.9 10.1 10.1 -0.4
% of net sales 4.7 1.8 3.7 3.9
RONA, % 8.3 3.0 6.4 7.1
Sales volumes, 000s
tons 32.4 30.1 7.5 99.4 93.3 6.6
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Net sales in July-September 2011 rose by 3.1% to EUR 91.5 million, compared with
EUR 88.7 million in July-September 2010. The increase was due to higher sales
volumes of food packaging and tea bag materials. The adverse currency effect had
a negative impact on net sales. Operating profit excluding non-recurring items
increased to EUR 4.3 million (EUR 1.6 million). The result was positively
impacted by the improved product mix, higher volumes and selling prices. The
Mundra plant in India and the teabag material line in Chirnside, U.K., continued
to weaken profitability. Operating profit was EUR 4.2 million (EUR 1.6 million).
In January-September 2011, net sales were EUR 275.8 million (EUR 262.4 million)
and operating profit excluding non-recurring items EUR 10.1 million (EUR 10.1
million).
Label and Processing
EUR million Q3/2011 Q3/2010 Change, % Q1-Q3/2011 Q1-Q3/2010 Change, %
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Net sales 163.6 182.2 -10.2 528.4 542.4 -2.6
Operating profit -3.7 7.7 -147.3 13.1 27.2 -51.9
% of net sales -2.2 4.2 2.5 5.0
Operating profit excl.
NRI -0.6 6.2 -110.0 14.4 25.7 -43.9
% of net sales -0.4 3.4 2.7 4.7
RONA, % -5.6 10.6 6.6 12.2
Sales volumes, 000s
tons 135.1 144.5 -6.5 432.9 457.7 -5.4
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Net sales in July-September 2011 fell by 10.2% to EUR 163.6 million, compared
with EUR 182.2 million in July-September 2010. The decline was due to lower
sales volumes in abrasive and flexible packaging papers and release liners, the
divestment of the Altenkirchen plant at the end of 2010, and lower selling
prices. Higher sales volumes of graphics & industrial papers and metalized
labels had a positive effect on net sales. Operating loss excluding non-
recurring items was EUR 0.6 million (EUR 6.2 million profit) due to lower sales
volumes and increased price competition. Operating loss amounted to EUR 3.7
million (EUR 7.7 million profit).
Label and Processing launched in September Acti-V(TM) , a new generation of
release papers for silicone coating. The technology enables Ahlstrom's customers
to reduce manufacturing costs and at the same time improve reliability.
In January-September 2011, net sales were EUR 528.4 million (EUR 542.4 million)
and operating profit excluding non-recurring items EUR 14.4 million (EUR 25.7
million).
Financing (including discontinued operations)
Net cash flow from operating activities in January-September 2011 amounted to
EUR 72.8 million (EUR 144.7 million), and cash flow after investments was EUR
45.4 million (EUR 104.4 million). In July-September 2011, net cash flow from
operating activities was EUR 26.7 million (EUR 67.5 million).
During January-September 2011, operative working capital increased by EUR 16.3
million to EUR 210.7 million from the end of 2010. Its turnover rose by four
days and was 41 days at the end of the review period. At the end of the third
quarter 2010, operative working capital stood at EUR 208.3 million and turnover
in days was 39.
Ahlstrom's interest-bearing net liabilities increased by EUR 3.1 million from
the end of 2010 to EUR 333.2 million (December 31, 2010: EUR 330.1 million).
Ahlstrom's interest bearing liabilities amounted to EUR 355.1 million. The
duration of the loan portfolio (average interest rate fixing period) was 21
months and the capital weighted average interest rate was 4.38%. The average
maturity of the loan portfolio was 48 months.
In January-September 2011, net financial expenses were EUR 18.1 million (EUR
21.4 million). Net financial expenses include net interest expenses of EUR 13.2
million (EUR 16.9 million), financing exchange rate losses of EUR 1.0 million
(EUR 0.3 million), and other financial expenses of EUR 3.8 million (EUR 4.1
million).
In July-September 2011, net financial expenses were EUR 6.1 million (EUR 7.9
million). Net financial expenses include net interest expenses of EUR 5.2
million (EUR 5.6 million), financing exchange rate gains of EUR 0.2 million (EUR
0.8 million loss), and other financial expenses of EUR 1.1 million (EUR 1.4
million).
The company's liquidity continues to be good. At the end of the review period,
its total liquidity, including cash, unused committed credit facilities and cash
pool limits was about EUR 447 million. In addition, the company had uncommitted
credit facilities of about EUR 99 million available.
In June, Ahlstrom signed a new EUR 250 million five-year revolving credit
facility to refinance the company's existing EUR 200 million revolving credit
facility signed in 2009.
The gearing ratio increased to 54.3% (December 31, 2010: 46.9%). The equity
ratio was 41.2% (December 31, 2010: 45.6%).
Capital expenditure (including discontinued operations)
Ahlstrom's capital expenditure excluding acquisitions totalled EUR 34.1 million
in January-September 2011 (EUR 28.7 million). In July-September 2011,
investments totalled EUR 14.0 million (EUR 16.9 million).
In June, Ahlstrom announced that it will invest a total of EUR 7 million at its
Stenay plant in France in order to produce lower grammage grades, enhancing the
quality of one-side coated papers for metalized labels and flexible packaging.
The Stenay plant is part of the Label and Processing business area.
In June, Ahlstrom announced that it will invest a total of EUR 30 million in a
new wallcover substrates production line at its Binzhou plant in China, where
the company is already manufacturing filtration materials. Deliveries from the
new line are expected to start in early 2013 and the new line will be part of
the Building and Energy business area.
In May, Ahlstrom announced that it will invest in additional capacity in
transportation filtration materials at its site in Louveira, Brazil. The
investment will be completed in the first quarter of 2012.
Changes in the Executive Management Team
On July 26, 2011, Claudio Ermondi, Executive Vice President, Product &
Technology Development, and member of the Executive Management Team, resigned
from Ahlstrom with immediate effect. His duties and responsibilities were
transferred to Paul Stenson, Executive Vice President, Technology and Product
Development.
Patrick Jeambar, Executive Vice President, Label and Processing Business Area,
stepped down from the Executive Management Team as of September 1, 2011. Daniele
Borlatto, Vice President, Release & Label and Supply Chain, succeeded Jeambar as
the Executive Vice President, Label and Processing Business Area. He also became
a member of the Executive Management Team reporting to Jan Lång, President and
CEO.
Implementation of the new operating model
In conjunction with the reorganization last year, Ahlstrom started the
implementation of its new operating model. By strengthening and harmonizing
global processes the company aims to increase its customer focus and enhance the
management of the entire product and supply chain. Development programs aimed at
enhancing the planning and harmonization of processes continued during the
review period.
Waste management program
The project to reduce material waste in manufacturing launched in 2010 has
progressed as planned. Ahlstrom aims to reduce production waste volume by 15
percent, which equals annual savings of approximately EUR 20 million as of
2012. By the end of September 2011, the project had been launched at 31 plants
out of the total of 37, and the intention is to expand it to all production
units by the end of this year.
Personnel
Ahlstrom employed on average 5,179 people[1] in January-September 2011 (5,247),
and 5,169 people (5,383) at the end of the period. The number of personnel has
decreased due to the earlier announced unit divestments. At the end of the
period, the highest numbers of employees were in France (23.9%), the United
States (18.0%), Finland (11.8%), Italy (11.4%), Brazil (7.3%) and Germany
(7.6%).
Authorizations of the Board of Directors
The Annual General Meeting of Shareholders held on March 30, 2011 authorized the
Board of Directors to repurchase and distribute the company's own shares as well
as to accept them as pledge as proposed by the Board of Directors. The number of
shares to be repurchased or accepted as pledge by virtue of the authorization
shall not exceed 4,000,000 shares in the company, yet always taking into account
the limitations set forth in the Companies' Act as regards the maximum number of
shares owned by or pledged to the company or its subsidiaries. The shares may be
repurchased only through public trading at the prevailing market price by using
unrestricted shareholders' equity. The rules and guidelines of NASDAQ OMX
Helsinki Oy and Euroclear Finland Ltd shall be followed in the repurchase.
The authorization includes the right for the Board of Directors to decide upon
all other terms and conditions for the repurchase of the company's own shares,
or their acceptance as pledge, including the right to decide on the repurchase
of the company's own shares otherwise than in proportion to the shareholders'
holdings in the company.
By virtue of the authorization, the Board of Directors has the right to resolve
to distribute a maximum of 4,000,000 own shares held by the company. The Board
of Directors was authorized to decide to whom and in which order the own shares
will be distributed. The Board of Directors may decide on the distribution of
the company's own shares otherwise than in proportion to the existing pre-
emptive right of shareholders to purchase the company's own shares. The shares
may be used e.g. 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 authorization also includes the
right for the Board of Directors to resolve on the sale of the shares accepted
as a pledge. The authorization includes the right for the Board of Directors to
resolve upon all other terms and conditions for the distribution of the shares
held by the Company.
The authorizations for the Board of Directors to repurchase the company's own
shares, to distribute them as well as to accept them as pledge 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.
On September 15, 2011, Ahlstrom decided to utilize the authorization given by
the Annual General Meeting held on March 30, 2011, to repurchase its own shares
for the implementation of the company's share-based incentive plan.
The maximum number of shares to be acquired is 250,000 corresponding to about
0.54% of the total number of shares and votes. The repurchases will reduce the
distributable capital and reserves.
At the end of September 30, 2011, Ahlstrom held a total of 28,288 of its own
shares, corresponding to approximately 0.06% of the total shares and votes.
Shares and share capital
Ahlstrom's shares are listed on the NASDAQ OMX Helsinki. Ahlstrom has one series
of shares. The share is classified under NASDAQ OMX's Materials sector and the
trading code is AHL1V.
During January-September 2011, a total of 4.92 million Ahlstrom shares were
traded for a total of EUR 79.8 million. The lowest trading price was EUR 10.60
and the highest EUR 18.23. The closing price on September 30, 2011 was EUR
12.45. The market capitalization at the end of the review period was EUR 577.0
million, excluding the shares owned by the parent company and Ahlcorp Oy, which
is a management ownership company.
Ahlstrom Group's equity per share was EUR 11.48 at the end of the review period
(December 31, 2010: EUR 13.48).
Other events during the review period
In September, a fire broke out at Ahlstrom's Mozzate wipes fabrics plant in
Italy and caused damage to one of the production lines. Based on the initial
investigation, production on the affected line is expected to be halted for a
three to five months for repair. The financial damage is expected to be covered
by insurance.
The Mozzate plant is part of the Home and Personal business area making fabrics
for wipes. Ahlstrom has in August signed an agreement to divest the business to
Suominen.
Events after the review period
Profit improvement program
On October 18, 2011, Ahlstrom announced it will implement a profit improvement
program to address underperforming businesses. The program aims to improve
annual operating profit by approximately EUR 15 million starting from the year
2012 and may affect about 400 employees. The figure includes the personnel
reductions of 225 people announced on October 18, 2011. The overall impact of
the non-recurring items of the program is cash neutral.
Ahlstrom booked a total non-recurring cost of approximately EUR 25 million for
the three measures mentioned below in its third-quarter 2011 financial results.
Further improvement measures are being considered and will be announced in due
course.
As a result of the co-operation negotiations started in September at its Karhula
and Mikkeli plants, part of the Building and Energy business area, Ahlstrom has
decided to gradually end the production of glassfiber and glassfiber mats in
Karhula by the end of 2011 as the operation is unprofitable. The production of
glassfiber tissue at the site will continue as before. The decision to end
glassfiber production will lead to a personnel reduction of 163 employees in
Finland starting from October. Several training and support programs aimed at
finding new employment opportunities for those affected have been started
internally and in the Kotka region with local authorities.
In the Building and Energy business area, Ahlstrom has decided to close its
hybrid wallcover production line in Turin, Italy, in October. The line, which
started in 2009 has been permanently affected by weak profitability.
Negotiations with employee representatives concerning the 22 employees working
on the line have been initiated.
In the Label and Processing business area, Ahlstrom is initiating negotiations
on streamlining measures at its Osnabrück plant in Germany that may affect a
maximum of 39 employees if implemented in the next 18 months.
Change in outlook
On October 18, 2011, Ahlstrom updated its 2011 outlook for net sales and
operating profit excluding non-recurring items from continuing operations. The
company's sales volumes development had been weaker than it had earlier
anticipated due to a slowdown in its main markets.
Completion of Home and Personal Divestment
Ahlstrom confirmed the closing of the divestment of its wipes fabrics, the Home
and Personal business area, to Suominen Corporation on October 20, 2011. The
business will be transferred on October 31, 2011, except for the Brazilian part
of the business, which is estimated to be transferred in the first quarter of
2012.
The transaction was signed on August 4, 2011, and the total value of the
transaction is approximately EUR 170 million. Following the transaction,
Ahlstrom becomes the largest shareholder in Suominen with a 27.1% stake.
Ahlstrom has committed not to decrease its ownership in Suominen below 20% for a
maximum of two years.
Outlook
Sales volume development in the second half of 2011 is expected to be weaker
than earlier anticipated due to the slowdown in Ahlstrom's main markets. The
lower than expected demand has had an adverse impact on net sales and operating
profit, particularly in the Label and Processing business area. Due to the
slowdown of the markets and easing of raw material cost inflation, it has been
more challenging to implement successfully price increases to compensate for
high raw material costs.
Ahlstrom estimates net sales from continuing operations for the current year to
amount to EUR 1,565-1,645 million. Operating profit excluding non-recurring
items from continuing operations is estimated to be EUR 46-56 million.
In 2011, investments excluding acquisitions from continuing operations are
estimated to be approximately EUR 85 million (EUR 47.2 million in 2010). The
figure includes investments that have already been announced in 2010 and 2011,
such as the filtration material capacity increase in Turin, and the crepe paper
plant investment together with a joint venture partner in China and the
wallcover materials line in China.
Short-term risks
The economic growth in Europe and North America has slowed down at a faster pace
than earlier anticipated due to the sovereign debt crisis and increased
uncertainties. Growth in Asia and other emerging markets has continued to be
strong, however growth could be negatively affected by the slowdown in Europe
and North America. The possible further contagion of the debt crisis poses an
additional risk to economic growth and sales development at Ahlstrom.
Slower economic growth may lead to lower sales volumes and force Ahlstrom to
take more market related shutdowns at plants, hurting profitability. The
increased uncertainty related to global economic growth makes it more difficult
to forecast future developments.
Ahlstrom's main raw materials are natural fibers, mainly pulp, synthetic fibers
and chemicals. The company is one of the world's largest buyers of market pulp.
Despite the recent declines, key raw material components used by Ahlstrom remain
at a high level.
If global economic growth slows down further, maintaining the current selling
price levels may be at risk and maintaining the current profitability level
might be compromised.
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 2010. The risk management process is
also described in the Corporate Governance Statement available on the company
website.
* * *
This interim report 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. The statements contain uncertainties and
risks and are thus subject to changes in the general economic situation and in
the company's business.
Helsinki, October 24, 2011
Ahlstrom Corporation
Board of Directors
Additional information
Jan Lång, President & CEO, tel. +358 (0)10 888 4700
Seppo Parvi, CFO, tel. +358 (0)10 888 4768
Ahlstrom's President & CEO Jan Lång and CFO Seppo Parvi will present the
January-September 2011 interim report in a Finnish-language press and analyst
conference in Helsinki today, October 24, 2011, at 2:30 p.m. (CET+1). The
conference will take place at Event Arena Bank, Unioninkatu 20, 2(nd) floor. The
meeting room will be announced on the display board in the lobby.
In addition, President & CEO Lång and CFO Parvi will hold a conference call in
English for analysts, investors and representatives of the media today, October
24, 2011, at 4:30 p.m. (CET+1). To participate in the conference call, please
dial (09) 2310 1621 in Finland or +44 (0)20 3364 5381 outside Finland a few
minutes before the conference begins. The access code is 6406131.
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 October 24, 2011 after the Interim
Report is published, at www.ahlstrom.com > Investors > Reports and presentations> 2011. Material in Finnish will be available at www.ahlstrom.fi > Sijoittajat >
Katsaukset ja presentaatiot > 2011.
Ahlstrom's financial information in 2012
Ahlstrom will publish financial information in 2011 as follows:
+--------------------------------+---------------------+--------------------+
|Report |Date of publication |Silent period |
+--------------------------------+---------------------+--------------------+
|Financial statements 2011 |Wednesday, February 1|January 1-February 1|
+--------------------------------+---------------------+--------------------+
|Interim Report January-March |Friday, April 27 |April 1-27 |
+--------------------------------+---------------------+--------------------+
|Interim Report January-April |Thursday, August 9 |July 1-August 9 |
+--------------------------------+---------------------+--------------------+
|Interim Report January-September|Monday, October 22 |October 1-22 |
+--------------------------------+---------------------+--------------------+
During the silent period, Ahlstrom will not communicate with capital market
representatives.
Ahlstrom in brief
Ahlstrom is a high performance materials company, partnering with leading
businesses around the world to help them stay ahead. Our products are used in a
large variety of everyday applications, such as filters, wallcovers, wipes,
flooring, labels and food packaging. We have a leading market position in the
businesses in which we operate. Our 5,700 employees serve customers in 26
countries on six continents. In 2010, Ahlstrom's net sales amounted to EUR 1.9
billion. The company's share is quoted on the NASDAQ OMX Helsinki. More
information is available atwww.ahlstrom.com.
Appendix
Consolidated financial statements
Appendix: Consolidated financial statement
Financial statements are unaudited.
--------------------------------------------------------------------------------
INCOME STATEMENT Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Net sales 389.7 413.0 1,235.9 1,219.6 1,636.3
Cost of goods sold -359.0 -357.8 -1,090.1 -1,046.6 -1,414.0
--------------------------------------------------------------------------------
Gross profit 30.7 55.2 145.8 173.0 222.3
Sales and marketing expenses -11.4 -12.1 -36.4 -37.5 -49.2
R&D expenses -4.9 -4.8 -13.8 -13.6 -18.6
Administrative expenses -23.0 -23.1 -67.5 -71.6 -96.8
Other operating income 1.4 0.8 8.1 8.6 16.8
Other operating expense -10.2 -1.9 -12.0 -3.4 -28.0
--------------------------------------------------------------------------------
Operating profit / loss -17.3 14.1 24.3 55.5 46.5
Net financial expenses -6.0 -7.7 -17.8 -21.1 -26.3
Share of profit / loss of associated
companies -1.1 -0.7 -2.4 -1.2 -1.4
--------------------------------------------------------------------------------
Profit / loss before taxes -24.4 5.7 4.1 33.2 18.8
Income taxes 4.3 -4.2 -7.4 -13.5 -7.8
--------------------------------------------------------------------------------
Profit / loss for the period from
continuing operations -20.2 1.5 -3.3 19.7 10.9
--------------------------------------------------------------------------------
Discontinued operations
Profit/loss for the period 1.9 2.6 4.5 5.0 7.0
Impairment loss recognised on the
remeasurement to
fair value and cost to sell -0.2 - -18.6 - -
--------------------------------------------------------------------------------
Profit / loss for the period from
discontinued operations 1.8 2.6 -14.0 5.0 7.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -18.4 4.1 -17.4 24.7 17.9
--------------------------------------------------------------------------------
Attributable to
Owners of the parent -18.4 4.1 -17.5 24.7 17.9
Non-controlling interest -0.0 0.0 0.2 0.0 0.0
--------------------------------------------------------------------------------
Continuing operations Oh,
Earnings per share, EUR
- Basic and diluted * -0.47 0.00 -0.17 0.33 0.11
--------------------------------------------------------------------------------
Including discontinued operations
Earnings per share, EUR
- Basic and diluted * -0.43 0.06 -0.47 0.44 0.26
--------------------------------------------------------------------------------
* With the effect of interest on hybrid
bond for the period, net of tax
------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2011 2010 2010
------------------------------------------------------------------------------
Profit / loss for the period -18.4 4.1 -17.4 24.7 17.9
Other comprehensive income, net of tax
Translation differences -11.3 -28.5 -27.4 26.3 39.2
Hedges of net investments in foreign operations - -0.0 - -2.8 -2.8
Cash flow hedges -0.0 -0.0 -0.1 -0.4 0.8
------------------------------------------------------------------------------
Other comprehensive income, net of tax -11.3 -28.5 -27.5 23.2 37.3
------------------------------------------------------------------------------
Total comprehensive income for the period -29.7 -24.4 -44.9 47.8 55.2
------------------------------------------------------------------------------
Attributable to
Owners of the parent -29.7 -24.4 -45.1 47.8 55.2
Non-controlling interest -0.0 0.0 0.2 0.0 0.0
--------------------------------------------------------------------------------
BALANCE SHEET Sep 30, Sep 30, Dec 31,
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Property, plant and equipment 531.3 594.2 590.1
Goodwill 107.5 126.1 114.1
Other intangible assets 37.6 45.8 41.1
Investments in associated companies 8.2 10.9 10.7
Other investments 2.5 2.5 2.5
Other receivables 46.5 33.2 44.4
Deferred tax assets 60.4 56.3 54.9
--------------------------------------------------------------------------------
Total non-current assets 794.0 869.0 857.7
Current assets
Inventories 188.2 171.9 173.6
Trade and other receivables 257.3 271.3 266.9
Income tax receivables 2.0 2.8 2.4
Other investments - - -
Cash and cash equivalents 21.0 44.1 23.5
--------------------------------------------------------------------------------
Total current assets 468.5 490.1 466.3
Assets classified as held for sale 228.4 236.4 234.8
--------------------------------------------------------------------------------
Total assets 1,491.0 1,595.5 1,558.9
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 532.2 618.4 623.0
Hybrid bond 80.0 80.0 80.0
Non-controlling interest 1.0 0.9 0.9
--------------------------------------------------------------------------------
Total equity 613.2 699.3 703.8
Non-current liabilities
Interest-bearing loans and borrowings 232.0 203.3 261.7
Employee benefit obligations 75.7 78.5 75.4
Provisions 2.8 3.3 3.0
Other liabilities 3.8 3.9 4.4
Deferred tax liabilities 31.1 33.0 27.4
--------------------------------------------------------------------------------
Total non-current liabilities 345.5 322.0 371.9
Current liabilities
Interest-bearing loans and borrowings 112.9 176.9 95.0
Trade and other payables 330.5 333.0 327.1
Income tax liabilities 4.8 5.9 4.4
Provisions 23.1 6.3 6.7
--------------------------------------------------------------------------------
Total current liabilities 471.3 522.1 433.2
--------------------------------------------------------------------------------
Total liabilities 816.8 844.2 805.1
Liabilities directly associated with assets classified
as held for sale 60.9 52.0 49.9
--------------------------------------------------------------------------------
Total equity and liabilities 1,491.0 1,595.5 1,558.9
--------------------------------------------------------------------------------
Statement of changes in equity
1) Issued capital
2) Share premium
3) Non-restricted equity reserve
4) Hedging reserve
5) Translation reserve
6) Own shares
7) Retained earnings
8) Total attributable to owners of the parent
9) Non-controlling interest
10) Hybrid bond
11) Total equity
EUR million 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at January
1, 2010 70.0 209.3 8.3 -0.8 -17.7 - 336.6 605.6 - 80.0 685.6
Profit / loss for the
period - - - - - - 24.7 24.7 - - 24.7
Other comprehensive
income, net of tax
Translation
differences - - - - 26.3 - - 26.3 - - 26.3
Hedges of net
investments
in foreign
operations - - - - -2.8 - - -2.8 - - -2.8
Cash flow hedges - - - -0.4 - - - -0.4 - - -0.4
Dividends paid and
other - - - - - - -26.0 -26.0 - - -26.0
Hybrid bond - - - - - - - - - - -
Interest on hybrid
bond - - - - - - -5.6 -5.6 - - -5.6
Purchases of own
shares - - - - - -0.9 - -0.9 - - -0.9
Share ownership plan
for EMT - - - - - -2.8 - -2.8 0.9 - -2.0
Change in non-
controlling interests - - - - - - - - - - -
Share-based incentive
plan - - - - - - 0.3 0.3 - - 0.3
--------------------------------------------------------------------------------
Equity at September
30, 2010 70.0 209.3 8.3 -1.2 5.9 -3.7 329.9 618.4 0.9 80.0 699.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at January
1, 2011 70.0 209.3 8.3 0.0 18.8 -6.4 323.0 623.0 0.9 80.0 703.8
Profit / loss for the
period - - - - - - -17.5 -17.5 0.1 - -17.4
Other comprehensive
income, net of tax
Translation
differences - - - - -27.4 - - -27.4 - - -27.4
Hedges of net
investments in foreign
operations - - - - - - - - - - -
Cash flow hedges - - - -0.1 - - - -0.1 - - -0.1
Dividends paid and
other - - - - - - -41.1 -41.1 - - -41.1
Hybrid bond - - - - - - - - - - -
Interest on hybrid
bond - - - - - - -5.6 -5.6 - - -5.6
Purchases of own
shares - - - - - -0.1 - -0.1 - - -0.1
Share ownership plan
for EMT - - - - - - - - - - -
Change in non-
controlling interests - - - - - - - - - - -
Share-based incentive
plan - - - - - 2.1 -1.0 1.1 - - 1.1
--------------------------------------------------------------------------------
Equity at September
30, 2011 70.0 209.3 8.3 -0.1 -8.6 -4.3 257.7 532.2 1.0 80.0 613.2
--------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS - including
discontinued operations Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Cash flow from operating activities
Profit / loss for the period -18.4 4.1 -17.4 24.7 17.9
Adjustments, total 33.7 39.3 117.0 113.6 145.2
Changes in net working capital 10.8 31.3 -28.6 56.7 69.2
Change in provisions 15.8 -2.3 15.7 -5.7 -4.9
Financial items -13.0 -3.6 -8.6 -40.2 -53.2
Income taxes paid / received -2.3 -1.4 -5.4 -4.4 -6.8
--------------------------------------------------------------------------------
Net cash from operating activities 26.7 67.5 72.8 144.7 167.5
Cash flow from investing activities
Acquisition of Group companies 0.3 -11.2 0.3 -11.2 -11.2
Purchases of intangible and tangible assets -12.5 -15.8 -34.0 -29.2 -48.7
Other investing activities 0.9 -0.2 6.3 0.1 11.3
--------------------------------------------------------------------------------
Net cash from investing activities -11.3 -27.3 -27.4 -40.3 -48.7
Cash flow from financing activities
Dividends paid and other - - -41.1 -25.6 -25.9
Repurchase of own shares -0.1 - -0.1 -0.9 -2.0
Investment to Ahlstrom Corporation shares related
to share ownership plan for EMT - -2.0 - -2.0 -3.5
Payments received on hybrid bond - - - - -
Interest on hybrid bond - - - - -7.6
Changes in loans and other financing activities -19.4 -13.2 -5.7 -52.2 -76.9
--------------------------------------------------------------------------------
Net cash from financing activities -19.4 -15.1 -46.8 -80.7 -115.8
Net change in cash and cash equivalents -4.0 25.1 -1.5 23.7 2.9
Cash and cash equivalents at the beginning of
the period 26.6 20.0 24.6 19.9 19.9
Foreign exchange adjustment -0.6 -0.6 -1.2 0.9 1.7
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the
period 21.9 44.5 21.9 44.5 24.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
KEY FIGURES Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Personnel costs -84.6 -75.5 -243.1 -234.3 -315.3
Depreciation and amortization -20.8 -22.0 -64.3 -65.7 -88.2
Impairment charges -9.1 -0.1 -9.1 -0.1 -0.1
--------------------------------------------------------------------------------
, , , , ,
Operating profit, % -4.4 3.4 2.0 4.5 2.8
Return on capital employed (ROCE), % -8.6 6.0 3.7 8.1 5.2
Basic earnings per share *, EUR -0.47 0.00 -0.17 0.33 0.11
Capital expenditure, EUR million 13.2 15.8 30.5 27.0 47.2
--------------------------------------------------------------------------------
Number of employees, average 5,192 5,280 5,179 5,247 5,264
Including discontinued operations
Personnel costs -93.6 -84.1 -269.7 -259.6 -350.0
Depreciation and amortization -20.8 -26.2 -72.1 -78.3 -104.8
Impairment charges -9.1 -0.1 -22.6 -0.1 -0.2
--------------------------------------------------------------------------------
Operating profit, % -2.9 3.5 0.7 4.3 2.8
Return on capital employed (ROCE), % -5.7 6.0 1.3 7.4 5.0
Return on equity (ROE), % -11.7 2.3 -3.5 4.8 2.6
--------------------------------------------------------------------------------
Interest-bearing net liabilities, EUR
million 333.2 333.7 333.2 333.7 330.1
Equity ratio, % 41.2 44.3 41.2 44.3 45.6
Gearing ratio, % 54.3 47.7 54.3 47.7 46.9
--------------------------------------------------------------------------------
Basic earnings per share *, EUR -0.43 0.06 -0.47 0.44 0.26
Equity per share, EUR 11.48 13.33 11.48 13.33 13.48
Average number of shares during the
period, 1000's 46,350 46,517 46,316 46,585 46,514
Number of shares at the end of the period,
1000's 46,346 46,403 46,346 46,403 46,224
--------------------------------------------------------------------------------
Capital expenditure, EUR million 14.0 16.9 34.1 28.7 51.1
Capital employed at the end of the period,
EUR million 968.3 1,077.5 968.3 1,077.5 1,058.5
Number of employees, average 5,762 5,844 5,748 5,805 5,823
--------------------------------------------------------------------------------
* With the effect of interest on hybrid
bond for the period, net of tax
Accounting principles
This interim report has been prepared in accordance with IAS 34, Interim
Financial reporting, as adopted by EU and the accounting principles set out in
the Group's Financial Statements for 2010 except for the changes below.
Changes in accounting principles
The following new or amended standards and interpretations which the Group has
adopted as of January 1, 2011 have not had impact on the consolidated financial
statements.
- IAS 32 Financial Instruments: Presentation (amendment) - Classification of
Rights Issues
- IAS 24 Related Party Disclosures (revised)
- IFRIC 14 Prepayments of a Minimum Funding Requirement (amendment)
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
Disposals of businesses in 2011
On December 7, 2010 Ahlstrom signed an agreement to sell Wuxi plant in China and
three production lines in Bethune in the USA to Andrew Industries.
Ahlstrom completed the sales of production lines in Bethune on December
22, 2010 and the sales of Wuxi on March 31, 2011. The value of the Wuxi
transaction is EUR 1.1 million.
------------------------------------------------------
DISPOSALS OF BUSINESSES Book values of assets
EUR million disposed of
------------------------------------------------------
Property, plant and equipment -
Intangible assets -
Inventories 0.1
Trade and other receivables 0.2
Cash and cash equivalents 0.2
Financial liabilities -
Trade and other payables 0.3
------------------------------------------------------
Net assets 0.3
Total transaction value 1.1
Consideration received (in cash) 0.7
Cash (disposed of) 0.2
------------------------------------------------------
Net cash inflow 0.5
------------------------------------------------------------------------
SEGMENT INFORMATION Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2011 2010 2010
------------------------------------------------------------------------
Building and Energy 67.0 66.3 222.6 196.7 268.9
Filtration 78.7 87.4 244.8 254.9 339.8
Food and Medical 91.5 88.7 275.8 262.4 354.7
Label and Processing 163.6 182.2 528.4 542.4 724.3
Other operations 18.4 11.5 53.5 32.8 44.4
Internal sales -29.4 -23.1 -89.2 -69.6 -95.8
------------------------------------------------------------------------
Total net sales 389.7 413.0 1 235.9 1 219.6 1 636.3
Building and Energy 4.6 3.8 13.1 11.2 14.3
Filtration 2.0 1.4 6.5 5.1 7.3
Food and Medical 8.5 9.3 27.8 23.0 34.5
Label and Processing 8.7 7.4 24.8 22.8 30.5
Other operations 5.6 1.1 17.0 7.4 9.2
------------------------------------------------------------------------
Total internal sales 29.4 23.1 89.2 69.6 95.8
Building and Energy -23.5 0.5 -21.7 0.2 1.3
Filtration 4.5 7.0 18.2 23.9 3.1
Food and Medical 4.2 1.6 10.0 10.9 13.0
Label and Processing -3.7 7.7 13.1 27.2 32.2
Other operations and eliminations 1.2 -2.8 4.8 -6.7 -3.2
------------------------------------------------------------------------
Operating profit / loss -17.3 14.1 24.3 55.5 46.5
Return on capital employed (RONA), %
Building and Energy -70.2 1.4 -21.7 0.1 0.9
Filtration 11.1 14.8 14.8 17.5 1.8
Food and Medical 8.3 3.0 6.4 7.1 6.3
Label and Processing -5.6 10.6 6.6 12.2 10.9
Group (ROCE), % -8.6 6.0 3.7 8.1 5.2
Building and Energy 119.5 147.6 119.5 147.6 147.7
Filtration 161.3 191.5 161.3 191.5 166.1
Food and Medical 205.7 206.0 205.7 206.0 213.0
Label and Processing 248.9 280.2 248.9 280.2 277.9
Other operations and eliminations -5.9 -16.3 -5.9 -16.3 -4.6
------------------------------------------------------------------------
Total net assets 729.5 808.9 729.5 808.9 800.1
Building and Energy 1.5 1.6 4.6 2.7 6.0
Filtration 4.4 1.6 10.8 3.2 6.8
Food and Medical 2.6 4.6 6.5 9.9 13.0
Label and Processing 4.4 7.7 6.5 10.4 19.4
Other operations 0.4 0.3 2.0 0.9 2.1
------------------------------------------------------------------------
Total capital expenditure 13.2 15.8 30.5 27.0 47.2
Building and Energy -4.6 -4.5 -14.0 -13.5 -18.1
Filtration -4.2 -4.7 -12.4 -14.3 -19.1
Food and Medical -4.5 -5.2 -14.0 -14.8 -20.2
Label and Processing -7.0 -7.0 -21.3 -21.3 -28.4
Other operations -0.5 -0.6 -2.7 -1.8 -2.3
-----------------------------------------------------------------
Total depreciation and amortization -20.8 -22.0 -64.3 -65.7 -88.2
Building and Energy -9.1 - -9.1 - -
Filtration - - - - -
Food and Medical - - - - -
Label and Processing - -0.1 - -0.1 -0.1
Other operations - - - - -
-----------------------------------------------------------------
Total impairment charges -9.1 -0.1 -9.1 -0.1 -0.1
Building and Energy -22.5 - -22.5 - -
Filtration 0.3 0.3 -0.3 0.3 -24.7
Food and Medical -0.1 - -0.1 0.8 -1.0
Label and Processing -3.0 1.5 -1.3 1.6 1.6
Other operations 0.0 -1.5 0.5 -1.2 3.8
-----------------------------------------------------------------
Total non-recurring items -25.3 0.3 -23.7 1.4 -20.3
----------------------------------------------------------------
SEGMENT INFORMATION Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
Thousands of tons 2011 2010 2011 2010 2010
----------------------------------------------------------------
Building and Energy 29.9 28.8 97.6 89.3 121.1
Filtration 27.0 28.9 84.6 86.6 115.1
Food and Medical 32.4 30.1 99.4 93.3 125.4
Label and Processing 135.1 144.5 432.9 457.7 601.0
Other operations and eliminations -9.9 -9.9 -30.8 -32.5 -43.3
----------------------------------------------------------------
Total sales tons 214.4 222.5 683.7 694.4 919.3
Segment information is presented according to the IFRS standards.
------------------------------------------------------------------------
NET SALES BY REGION
- including discontinued operations Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2011 2010 2010
------------------------------------------------------------------------
Europe 242.5 245.6 777.2 740.1 987.3
North America 112.2 105.4 334.4 327.2 455.9
South America 55.1 66.7 161.3 170.7 214.1
Asia-Pacific 46.1 55.7 153.7 145.8 197.5
Rest of the world 10.3 8.9 28.0 29.0 39.4
------------------------------------------------------------------------
Total net sales 466.2 482.4 1,454.6 1,412.8 1,894.2
----------------------------------------------------------------
CHANGES OF PROPERTY, PLANT AND
EQUIPMENT - including discontinued operations Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2010
----------------------------------------------------------------
Book value at Jan 1 704.9 717.6 717.6
Acquisitions through business combinations - 11.5 12.2
Additions 32.5 28.0 49.9
Disposals -0.2 -0.3 -10.2
Depreciations and impairment charges -76.2 -74.0 -99.2
Translation differences and other changes -22.1 25.0 34.6
Book value at the end of the period 638.7 707.9 704.9
--------------------------------------------------------------------------------
TRANSACTIONS WITH RELATED PARTIES - including discontinued
operations Q1-Q3 Q1-Q3 Q1-Q4
EUR million 2011 2010 2010
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Transactions with associated companies
Sales and interest income 0.4 0.4 0.5
Purchases of goods and services -2.3 -2.1 -2.8
Trade and other receivables 0.1 0.1 0.1
Trade and other payables 0.2 0.2 0.2
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Market prices have been used in transactions with associated
companies.
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OPERATING LEASES - including discontinued operations Sep 30, Sep 30, Dec 31,
EUR million 2011 2010 2010
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Current portion 7.1 5.7 7.1
Non-current portion 18.8 19.2 20.3
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Total 25.9 24.9 27.4
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COLLATERALS AND COMMITMENTS - including discontinued
operations Sep 30, Sep 30, Dec 31,
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Mortgages 73.0 73.0 73.0
Pledges 0.2 0.2 0.2
Commitments
Guarantees given on behalf of group companies 20.4 22.9 19.8
Guarantees given on behalf of associated companies 15.0 - -
Capital expenditure commitments 20.5 7.3 3.6
Other commitments 2.3 2.1 2.6
----------------
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QUARTERLY DATA Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2011 2011 2011 2010 2010 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Net sales 389.7 423.7 422.5 416.8 413.0 424.9 381.6
Cost of goods sold -359.0 -366.2 -364.9 -367.5 -357.8 -358.3 -330.4
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Gross profit 30.7 57.5 57.6 49.3 55.2 66.6 51.2
Sales and marketing expenses -11.4 -11.7 -13.2 -11.7 -12.1 -13.0 -12.4
R&D expenses -4.9 -4.0 -4.9 -5.0 -4.8 -4.6 -4.2
Administrative expenses -23.0 -23.8 -20.7 -25.2 -23.1 -25.9 -22.6
Other operating income 1.4 5.0 1.8 8.3 0.8 5.8 2.0
Other operating expense -10.2 -0.8 -0.9 -24.6 -1.9 -0.6 -0.9
--------------------------------------------------------------------------------
Operating profit / loss -17.3 22.1 19.5 -9.0 14.1 28.2 13.1
Net financial expenses -6.0 -6.6 -5.2 -5.3 -7.7 -6.7 -6.6
Share of profit / loss of
associated companies -1.1 -1.3 -0.0 -0.2 -0.7 -0.4 -0.0
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Profit / loss before taxes -24.4 14.3 14.3 -14.5 5.7 21.0 6.5
Income taxes 4.3 -5.8 -5.9 5.7 -4.2 -7.4 -1.9
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Profit / loss for the period
from continuing operations -20.2 8.5 8.3 -8.8 1.5 13.6 4.6
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Discontinued operations
Profit/loss for the period 1.9 1.3 1.3 2.0 2.6 1.5 0.9
Impairment loss recognised on
the remeasurement to
fair value and cost to sell -0.2 -18.4 - - - - -
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Profit / loss for the period
from discontinued operations 1.8 -17.1 1.3 2.0 2.6 1.5 0.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -18.4 -8.6 9.6 -6.8 4.1 15.1 5.5
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Attributable to
Owners of the parent -18.4 -8.6 9.4 -6.8 4.1 15.1 5.5
Non-controlling interest -0.0 -0.0 0.2 -0.0 0.0 - -
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QUARTERLY DATA BY SEGMENT Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2011 2011 2011 2010 2010 2010 2010
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Net sales
Building and Energy 67.0 77.0 78.6 72.2 66.3 68.3 62.1
Filtration 78.7 83.8 82.3 84.9 87.4 88.5 79.0
Food and Medical 91.5 90.9 93.4 92.3 88.7 91.7 82.0
Label and Processing 163.6 183.2 181.7 181.9 182.2 188.1 172.0
Other operations and eliminations -11.1 -11.2 -13.5 -14.6 -11.6 -11.7 -13.4
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Group total 389.7 423.7 422.5 416.8 413.0 424.9 381.6
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Operating profit / loss
Building and Energy -23.5 -0.5 2.3 1.2 0.5 1.4 -1.8
Filtration 4.5 6.6 7.1 -20.7 7.0 9.4 7.5
Food and Medical 4.2 2.9 3.0 2.1 1.6 5.3 4.0
Label and Processing -3.7 10.5 6.2 5.0 7.7 14.2 5.3
Other operations and eliminations 1.2 2.7 0.9 3.5 -2.8 -2.1 -1.8
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Group total -17.3 22.1 19.5 -9.0 14.1 28.2 13.1
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Operating profit / loss excl. NRI
Building and Energy -1.0 -0.5 2.3 1.2 0.5 1.4 -1.8
Filtration 4.2 6.1 8.2 4.2 6.8 9.4 7.5
Food and Medical 4.3 2.9 3.0 3.9 1.6 4.5 4.0
Label and Processing -0.6 8.8 6.2 4.9 6.2 14.2 5.3
Other operations and eliminations 1.2 3.2 -0.0 -1.5 -1.3 -2.1 -2.1
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Group total 8.0 20.4 19.7 12.7 13.8 27.4 12.8
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Sales tons, thousands of tons
Building and Energy 29.9 33.9 33.8 31.8 28.8 31.2 29.3
Filtration 27.0 29.2 28.4 28.5 28.9 29.7 28.0
Food and Medical 32.4 33.3 33.7 32.1 30.1 32.3 30.9
Label and Processing 135.1 149.7 148.2 143.3 144.5 156.9 156.2
Other operations and eliminations -9.9 -10.4 -10.5 -10.8 -9.9 -10.9 -11.7
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Group total 214.4 235.7 233.6 224.9 222.5 239.2 232.7
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KEY FIGURES QUARTERLY Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2011 2011 2011 2010 2010 2010 2010
--------------------------------------------------------------------------------
Continued operations
Net sales 389.7 423.7 422.5 416.8 413.0 424.9 381.6
Operating profit / loss -17.3 22.1 19.5 -9.0 14.1 28.2 13.1
Profit / loss before taxes -24.4 14.3 14.3 -14.5 5.7 21.0 6.5
Profit / loss for the period -20.2 8.5 8.3 -8.8 1.5 13.6 4.6
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, , , , , , ,
Return on capital employed
(ROCE), % -8.6 10.2 9.2 -3.9 6.0 12.4 5.9
Basic earnings per share *, EUR -0.47 0.16 0.14 -0.22 0.00 0.26 0.07
Including discontinued
operations
Net sales 466.2 496.8 491.6 481.4 482.4 489.4 441.0
Operating profit / loss -13.5 3.6 20.8 -7.0 16.9 29.8 14.0
Profit / loss before taxes -20.7 -4.4 15.5 -12.6 8.3 22.5 7.4
Profit / loss for the period -18.4 -8.6 9.6 -6.8 4.1 15.1 5.5
--------------------------------------------------------------------------------
, , , , , , ,
Gearing ratio, % 54.3 52.6 48.4 46.9 47.7 50.3 55.3
Return on capital employed
(ROCE), % -5.7 1.1 8.2 -2.5 6.0 10.9 5.2
Basic earnings per share *, EUR -0.43 -0.21 0.17 -0.18 0.06 0.29 0.09
Average number of shares during
the period, 1000's 46,350 46,349 46,248 46,305 46,517 46,596 46,642
--------------------------------------------------------------------------------
* With the effect of interest
on hybrid
bond for the period, net of tax
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)
Return on capital employed (RONA), %
Operating profit (loss)/
x 100
Working capital (annual average) + Property, plant and equipment and Intangible
assets (annual average)
Basic earnings per share, EUR
Profit (loss) for the period - Non-controlling interest - Interest on hybrid
bond for the period, net of tax/
Average number of shares during the period
Diluted earnings per share, EUR
Profit (loss) for the period - Non-controlling interest - Interest on hybrid
bond for the period, net of tax/
Average diluted number of shares during the period
Equity per share, EUR
Equity attributable to owners of the parent/
Number of outstanding shares at the end of the
period
[1] The figure is based on continuing operations and was calculated as full-time
equivalents.
[HUG#1557173]
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