Huhtamäki Oyj - Interim report (Q1 and Q3)

Huhtamäki Oyj's Interim Report January 1 - September 30, 2011: Growth momentum continued

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 20.10.2011 AT 08:30

- Healthy net sales growth continued, led by the Flexible Packaging segment
- Two strategic, growth enhancing acquisitions completed
- Positive sales and earnings development in the North America segment in the
third quarter
- Foodservice Europe-Asia-Oceania segment's profitability disappointing



Key figures (continued operations)

EUR million              Q1-Q3 2011 Q1-Q3 2010 Q3 2011 Q3 2010    2010
----------------------------------------------------------------------
Net sales                   1,521.8    1,470.0   515.8   499.8 1,951.8

EBIT reported                  92.2      106.6    24.8    33.4   134.3

EBIT excl. NRI*               100.0      106.6    32.6    33.4   134.3

EBIT margin excl. NRI* %        6.6        7.3     6.3     6.7     6.9

EPS reported (EUR)             0.61       0.70    0.16    0.23    0.92

EPS excl. NRI* (EUR)           0.69       0.70    0.24    0.23    0.92

ROI %                          10.2       10.1                    12.0

Free cash flow                  1.1       76.2    20.3    31.9   112.9

Net debt                      351.3      345.2                   269.9

Gearing                        0.41       0.42                    0.32


*EUR -7.8 million non-recurring items (NRI) in Q1-Q3 2011 and Q3 2011


Overview
The Group's trading conditions remained relatively stable during the reporting
period, despite increased economic uncertainty towards the end of the period.
Demand for consumer packaging remained robust within emerging markets. Raw
material price levels stabilized but currencies moved adversely in the third
quarter. The Group's outlook for 2011 has been modified regarding the tax rate.

The Group's net sales developed favorably in the reporting period compared to
the corresponding period in 2010, led by the continued strong growth in the
Flexible Packaging segment. Reported Group net sales growth for the reporting
period was EUR 52 million, of which the businesses acquired during the third
quarter accounted for EUR 6 million. Net sales development in the North America
segment in constant currencies turned positive during the third quarter. Adverse
currency translations, especially in North America, had a negative impact in
reported net sales development during the reporting period.

The Group's earnings before interest and taxes (EBIT) for the reporting period
were EUR 92 million, including a non-recurring charge of EUR 8 million related
to the closure of the New Lynn unit in New Zealand. Successful price management
and favorable product mix supported earnings development during the third
quarter. Currency translations continued to have a negative impact on earnings
during the third quarter.

The Group's free cash flow continued to develop positively during the third
quarter, but free cash flow in the reporting period was lower than in the
corresponding period in 2010. Return on investment (ROI) was 10.2% (10.1%).

Two strategic, growth enhancing acquisitions were completed during the reporting
period. A hygienic films manufacturer was acquired in Brazil and a specialty
folding carton business in the United States. The closure of a Flexible
Packaging manufacturing unit in New Zealand was announced during the reporting
period.

Outlook for 2011
The Group's trading conditions are expected to remain similar to the trading
conditions experienced earlier in 2011. Raw material prices are not expected to
increase from the third quarter levels.  Financial charges are expected to
increase from the exceptionally low level in 2010. Tax rate is estimated to be
approximately at the level of 2010.

The good financial position and ability to generate a positive cash flow will
enable the Group to further address profitable growth opportunities. Capital
expenditure is expected to be around EUR 100 million.

Financial reporting schedule in 2012
The Results 2011 will be published on February 15, 2012. Additionally, the
interim reports will be published as follows:
- Interim Report January 1 - March 31, 2012           April 24, 2012
- Interim Report January 1 - June 30, 2012            July 20, 2012
- Interim Report January 1 - September 30, 2012       October 19, 2012
Huhtamäki Oyj's Annual General Meeting is planned to be held on April 24, 2012.

This is a summary of Huhtamaki's interim report for January 1 - September
30, 2011. The complete report is attached to this release and is also available
at the company website at www.huhtamaki.com.

For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Timo Salonen, CFO, tel. +358 10 686 7880

HUHTAMÄKI OYJ
Group Communications

Huhtamaki Group is a leading manufacturer of consumer and specialty packaging
with 2010 net sales totaling EUR 2 billion. Foodservice and consumer goods
markets are served by approximately 12,500 people in 58 manufacturing units and
several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has
its head office in Espoo, Finland and its share is quoted on the NASDAQ OMX
Helsinki Ltd. Additional information is available at www.huhtamaki.com.


[HUG#1556130]

Attachments:

Huhtamäki Oyj Interim Report January 1-September 30, 2011.pdf