Vaahto Group Plc Oyj - Interim Management statement

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2010 - JANUARY 14, 2011

Lahti, Finland, 2011-01-14 08:00 CET (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC OYJ
STOCK EXCHANGE BULLETIN 14.1.2011 at 9.00 



VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2010 - JANUARY 14,
2011 



In the period under review, Vaahto Group's turnover and result developed as
expected. The Group's turnover for September 1, 2010 - November 30, 2010, was
10.9 million euros (9.2 million euros for the corresponding period in the
previous fiscal year), with an operating loss of 0.3 million euros (operating
loss of 1.7 million euros). Turnover grew by 18% from the reference period, and
the operating result was better than in the comparative period. The Group's
order book increased by 70% in the review period and stood at 25.7 million
euros on November 30, 2010. Vaahto Group's result is expected to improve
significantly from the previous fiscal year's figure, and the full-year result
is expected to be positive. 



Pulp & Paper Machinery



The Pulp & Paper Machinery division's turnover for September 1, 2010 - November
30, 2010, was 7.3 million euros (6.2 million euros), with an operating profit
of 0.1 million euros (operating loss of 1.6 million euros). Turnover grew by
17% from the reference period, and the operating result was clearly better than
in the comparative period. 



The market situation for the Pulp & Paper Machinery division has remained good,
and the order backlog increased considerably during the period. In the project
business, the most significant orders were the orders in September for four
headboxes from Dongguan Jianhui Paper Co. Ltd. and Dongguan Jinzhou Paper Co.
Ltd., both from China, and an order for modernization of Fajar Paper's board
machine in Indonesia. Furthermore, in December Vaahto Pulp & Paper Machinery
received an order for five headboxes from Vantage Dragon Ltd. for two new
packaging board production lines to be delivered to China. 



The status of the markets for the Pulp & Paper Machinery division has remained
stable, and the outlook for the fiscal year is good. Vaahto Service's product
selection for paper machine servicing has expanded in line with objectives. 



Process Machinery



The Process Machinery division's turnover for September 1, 2010 - November 30,
2010, was 3.6 million euros (3.1 million euros), with an operating loss of 0.4
million euros (operating loss of 0.1 million euros). The turnover increased by
19% from that of the reference period, but the result was still lower than the
comparative figure. The result was affected by poor profitability of delivery
projects in the vessel business during the period under review. 



The market situation for the vessel business of the Process Machinery division
has picked up, and the number of projects in the offer phase has been on the
increase. The market situation in the agitator business has remained good, and
the order book grew during the review period. 



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



The international market situation in the main sectors of Vaahto Group's
operation has improved. Demand is strong, particularly in Chinese and other
Asian markets, and there are also signs of improvement in Europe. 



In the period under review, Vaahto Group's order book has grown significantly,
enabling profitable business operations. Vaahto Group's result is forecast to
improve significantly from the previous period's figure, and the full-year
result is expected to be positive. 



Interim report for September 1, 2010 - February 28, 2011



Vaahto Group will issue a six-month interim report on April 8, 2011.



In Lahti on January 14, 2011



VAAHTO GROUP PLC OYJ

Board of DirectorsVaahto Group is globally operating high technology company serving process
industry in the fields of pulp and paper machinery and process machinery. 


         For more information, please contact:
         Anssi Klinga
         CEO, Vaahto Group Plc Oyj
         Tel.: +358 50 466 1470