Vaahto Group Plc Oyj - Interim Management statement

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2008 - JUNE 26, 2009

VAAHTO GROUP PLC OYJ COMPANY RELEASE 26.6.2009 at 10.00

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2008 - JUNE 26, 2009

Vaahto Group's turnover for September 1, 2008, to May 31, 2009, was 56.6
million euros (compared with 60.3 million euros for the corresponding period in
the previous fiscal year), with an operating loss of 2.9 million euros
(comparative: operating profit of 0.6 million euros). Most of the loss
accumulated during the first half of the fiscal year, when the turnover was
clearly below the previous year's levels. More positive developments were
achieved at the end of the period under review, thanks to the increased
turnover and the cost-adjustment procedures performed. The Group's turnover for
the third quarter (March 1 to May 31, 2009), was 24.4 million euros (compared
with 18.4 million euros for the corresponding period in 2008), with an
operating loss of 0.1 million euros (comparative: operating profit of 0.4
million euros). Vaahto Group's order book at the end of the period under review
totaled 31.0 million euros (24.8 million euros). 

Pulp & Paper Machinery 

The Pulp & Paper Machinery division's turnover for September 1, 2008, to May
31, 2009, was 37.2 million euros (33.7 million euros), with an operating loss
of 3.4 million euros (operating loss of 2.7 million euros). The division's loss
in the period under review was accumulated mostly in the first half of the
fiscal year. Toward the end of the period, more positive developments were
achieved, thanks to the increased turnover and the above-mentioned adjustment
procedures. The division's result for the third quarter was slightly to the
positive. 

The most significant orders for the Pulp & Paper Machinery division during the
period were for the tissue machine rebuild at Metsä Tissue's Mänttä mill, the
board machine rebuild for Stora Enso's Inkeroinen mill, and the headbox project
for the Stora Enso board machine in Imatra. Also, the division received an
additional order from the Kama paper mill in Russia. This order is related to
the contract made in August 2008 for paper machine modernization, which
involves conversion of the machine in question from newsprint to LWC paper
production. 

In the period under review, the division merged Vaahto Roll Service Oy, part of
the division, with Vaahto Ltd. The purpose of the merger was to simplify the
Group's structure, reduce costs, and streamline the operations of the Pulp &
Paper Machinery division. Following the merger, the division has two
operational profit centers: Vaahto Projects and Vaahto Service. 

Process Machinery

The Process Machinery division's turnover for September 1, 2008, to May 31,
2009, was 20.4 million euros (26.6 million euros), with an operating profit of
0.6 million euros (2.8 million euros). The turnover decreased by 23% from that
of the reference period, making the result lower than the comparative figure. 

The division's market situation was very weak during the period under review,
and the order backlog was adversely affected for both vessels and agitators.
The division has a significant number of customer projects in the offer phase,
but decisions on the realization of these projects have been heavily delayed in
view of the current economic climate. 

Outlook for the September 1, 2008 - August 31, 2009, fiscal year

The international financial climate has led to great insecurity in the market
and to postponement of investment decisions. The market situation is thus
highly challenging. The period under review saw the Group companies take
significant action to adjust their operations to the current demand and market
situation. 
With the adjustment procedures, and as the projects in the order book are
entered in the accounts, the result for the second half of the fiscal year will
improve from those of the first half, but the result for the full fiscal year
will remain unprofitable. 

Lahti, June 26, 2009

VAAHTO GROUP PLC OYJ

Board of Directors

Information: 
Anssi Klinga
CEO, Vaahto Group Plc Oyj
Tel.: +358 50 466 1470