2011-10-25 10:30:43 CEST
2011-10-25 10:31:46 CEST
REGULATED INFORMATION
Suominen Yhtymä - Interim report (Q1 and Q3)
SUOMINEN CORPORATION: INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2011
A GLOBAL NONWOVEN COMPANY IN SIGHT
Tampere, Finland, 2011-10-25 10:30 CEST (GLOBE NEWSWIRE) -- SUOMINEN
CORPORATION INTERIM REPORT 25 OCTOBER 2011 AT 11:30 A.M.
INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2011
A GLOBAL NONWOVEN COMPANY IN SIGHT
KEY FIGURES 7-9/201 7-9/201 1-9/201 1-9/201 1-12/201
1 0 1 0 0
--------------------------------------------------------------------------------
Net sales, EUR million 43.1 43.4 130.8 128.1 173.4
Operating profit, EUR million -1.9 -1.8 -2.5 -2.2 -10.8
Profit/loss for the period, EUR -2.8 -2.1 -5.7 -4.0 -14.4
million
Earnings/share, EUR -0.06 -0.05 -0.12 -0.10 -0.34
Cash flow from operations/share, 0.02 0.09 0.04 0.00 -0.06
EUR
Suominen's net sales for the first nine months of the year grew compared with
the corresponding period in 2010. The operating profit for the third quarter
was negative, as it was for the entire reporting period. Sales margins improved
during the third quarter, but production volumes were lower than average. The
ongoing cost-saving measures had a positive impact on the Group's result. On 4
August 2011, Suominen concluded an agreement on the acquisition of Ahlstrom's
Home and Personal business area and in October, organised a EUR 87 million
share issue to finance part of the acquisition. The transaction will be
finalised on 31 October 2011.
Outlook: The net sales of the acquired business will be included in Suominen's
2011 sales figures covering a period of two months, and as a result, Suominen's
net sales are expected to improve from the previous year. The acquired business
is estimated to have a negative impact on Suominen's result after taxes when
considering also the non-recurring costs related to the business transaction.
It is estimated that the result after taxes for the whole year 2011 will
improve over 2010, but will be negative.
GROUP FINANCIAL RESULTS
Suominen generated net sales of EUR 43.1 million (43.4) in the third quarter.
Operating loss was EUR 1.9 million (1.8), profit before taxes EUR -3.2 million
(-2.9) and profit after taxes EUR ‑2.8 million (-2.1).
Net sales for the nine-month period totalled EUR 130.8 million (128.1).
Operating loss was EUR 2.5 million (2.2), profit before taxes EUR -6.7 million
(-5.3) and profit after taxes EUR -5.7 million (-4.0). Net sales increased by 2
per cent compared to the first nine months of the previous year. Average sales
prices and margins improved, as sales prices rose and raw material price
clauses included in sales contracts began to have an effect.
The rise in raw material prices halted compared to the first six months of the
year. Shorter review periods for some raw material clauses included in sales
contracts were implemented. Production volumes were lower than average due to
the summer season, which led to a negative result. Operating costs were down
from the corresponding period in 2010. The result included EUR 1.0 million in
nonrecurring costs.
Tight capital control and use of cash was continued. Investments were kept at a
low level, and the amount of working capital decreased, despite higher raw
material prices. Cash flow from operations was positive.
Acquisition of Home and Personal business
On 4 August 2011, Suominen concluded an agreement with Ahlstrom Corporation on
the acquisition of the company's Home and Personal nonwovens business. The
value of the transaction is EUR 170 million. The transaction will be completed
by the end of October 2011. The Home and Personal business area's net sales in
January-September 2011 were EUR 250.5 million and the operating profit was EUR
2.3 million according to carve-out combined income statement. Figures are based
on the information, which is received from Ahlstrom (see the attachment). The
operating profit for the third quarter was weaker than earlier expected.
Approximately 480 employees will transfer to Suominen as part of the agreement.
EUR 0.4 million in non-recurring costs related to the business transaction were
included in Suominen's result for the reporting period.
To finance the acquisition, Suominen organised a share issue from 5-11 October
2011, which raised EUR 87.2 million in new capital. Suominen has agreed on a
syndicated credit facility of EUR 150 million to finance the remainder of the
transaction amount and to refinance the company's previous syndicated facility
of EUR 44 million.
Suominen has received approval from the competition authorities in Spain,
Germany and the United States on the business transaction. Authority approval
of the transaction in Brazil is estimated to take place during the first
quarter of 2012.
Along with the transaction, Suominen will become a global market leader as a
manufacturer of nonwoven materials for baby, personal care, household and
industrial wipes. By expanding operations geographically and with a strong
market position, Suominen will be well positioned to respond to customer needs
by offering comprehensive sales and product development resources, as well as a
more extensive product range worldwide. Financial figures of the acquired
business for the first nine months of 2011 are presented in the attachment to
this release.
Cost-saving and operational enhancement programme
The most significant savings in Suominen's Stairs to the Top efficiency
programme were generated by the closure of the Nastola flexible packaging plant
and the rationalisation measures decided on for Codi Wipes in late 2010. The
Nastola plant's production was transferred to other regions, and savings have
started to show in Flexibles' expenses. The other efficiency measures were
related to improving production yield and efficiency in the units. The positive
impact of the savings and efficiency programmes on the result for the first
nine months amounted to some EUR 4.5 million.
Financing
The Group's interest-bearing net liabilities totalled EUR 59.7 million (54.5),
including capital loans of EUR 4.0 million (6.0). Repayments of non-current
loans amounted to EUR 0.7 million. Net financial expenses were EUR 4.3 million
(3.2), or 3.3 per cent (2.5) of net sales. The increased cost of financing was
due to the higher average interest rate on the loans. A total of EUR 2.3
million was released in working capital (EUR 2.2 million tied up). Trade
receivables amounting to EUR 12.8 million (11.5) were sold to the bank. The
equity ratio was 22.9 per cent (34.0). When capital loans are included in
shareholders' equity, the equity ratio was 26.5 per cent (38.8) and the net
gearing 187.9 per cent (99.7). Cash flow from operations was EUR 1.8 million
(-0.1) and EUR 0.04 per share (0.00).
Investments
The company's gross investments in production totalled EUR 3.1 million (4.6).
Planned depreciation amounted to EUR 6.0 million (7.1). Codi Wipes accounted
for EUR 0.2 million (0.4), Nonwovens for EUR 0.9 million (1.5) and Flexibles
for EUR 1.8 million (2.6) of total investments. The Group's investments were in
efficiency enhancement and maintenance.
SEGMENT RESULTS
The Wiping business area generated net sales of EUR 81.7 million (79.1) in the
first nine months, a 3 per cent increase over the corresponding period in 2010.
The business area's operating loss was EUR 1.9 million
(2.1).
Net sales of Codi Wipes, at EUR 42.5 million (42.9), declined by one per cent
on the previous year. Sales of personal care wipes increased, while baby wipe
and moist toilet wipe sales were down. Average sales prices remained at the
same level as in the corresponding period in 2010. The unit's operating
expenses decreased as planned, primarily as a result of the rationalisation
measures and personnel reductions early in the year.
Net sales of Nonwovens increased by 5 per cent to EUR 43.0 million (40.9). The
growth was due to the rise in sales prices; delivery volumes, on the other
hand, fell slightly from the previous year. Sales during the third quarter were
lower than they were in the first two quarters of the year, largely due to the
summer season. The unit's most significant product area, nonwovens used in
wiping products, experienced sales growth, and the trend was the same for
nonwovens used in health care products. Sales of nonwovens for hygiene products
were on a par with the previous year. The unit's sales growth focused on
Europe, and sales in North America were at the level of the previous year. Raw
material prices levelled off during the summer, which improved sales margins.
Production volumes were low due to the summer holiday season, which translated
into an increase in manufacturing costs per unit compared to the previous
quarters.
Net sales of Flexibles during the first nine of the year totalled EUR 49.8
million (49.6) and operating profit was EUR 0.2 million (0.0). In terms of
volumes, sales decreased from the previous year. Hygiene packaging sales
increased, while sales of carrier bags and security and system packaging
remained on the same level as in the previous year. Food packaging sales
decreased on the previous year. Sales prices were raised on the basis of raw
material clauses included in sales contracts and through general price
increases. An active pricing policy, however, led to some losses of clients as
the tight price competition in the industry continued. Rising prices of
plastic-based raw materials levelled out during the summer. Operating expenses
decreased from last year as a result of the rationalisation measures carried
out. The machinery transfers from Nastola to the Polish and Tampere plants were
completed, and production at the Nastola plant came to an end. The operations
of the Swedish sales office were discontinued and local warehousing services
were outsourced. At the end of the period, possible personnel reductions were
announced at the Polish unit, affecting more than ten employees, because sales
volumes had not developed as expected. Non-recurring costs amounting to EUR 0.6
million were incurred during the period.
EXTRAORDINARY GENERAL MEETING AND SHARE ISSUE AUTHORISATION
An Extraordinary General Meeting of Shareholders was held on 12 September 2011.
The General Meeting authorised the Board of Directors to decide on the issue of
a maximum of 280,000,000 new shares in one or more share issues against
payment. The Board of Directors utilised, on 3 October 2011, the authorisation
for the purposes of a share issue required by the transaction between the
company and Ahlstrom Corporation, published on 4 August 2011.
The General Meeting resolved to amend section 11 of the Articles of Association
of the company concerning notice of the General Meeting of Shareholders, to
delete the second paragraph of section 12 with regard to voting restrictions,
and to delete section 14 regarding the redemption obligations. The amendments
of the Articles of Association were conditional and came into effect on 21
October 2011.
The General Meeting resolved that the number of members of the Board of
Directors shall be five (5), and elected Mr. Risto Anttonen, Mr. Jorma
Eloranta, Mr. Mikko Maijala, Mr. Heikki Mairinoja and Ms. Suvi Hintsanen as the
members of the Board of Directors. The resolutions of the Extraordinary General
Meeting regarding the number of members of the Board of Directors and the
election of members were conditional and only came into effect on 21 October
2011 upon completion of the transaction between the company and Ahlstrom
Corporation.
The General Meeting resolved to establish a Nomination Committee comprising
shareholders or representatives of shareholders to prepare proposals for the
following Annual General Meeting concerning the election and remuneration of
the members of the Board of Directors. The three largest shareholders or
representatives of such shareholders are elected to the Nomination Committee,
which, in addition, shall comprise the Chairman of the Board of Directors as an
expert member. The resolution of the Extraordinary General Meeting regarding
the establishment of the Nomination Committee was conditional and only came
into effect on 21 October 2011 upon the completion of the transaction between
the company and Ahlstrom Corporation.
SHARE CAPITAL AND SHARES
Share capital
The registered number of Suominen's issued shares totals 47,395,014 shares.
There were no changes in share capital during the period under review.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 30 September 2011 was 3,270,235 shares, equivalent to 6.9 per cent
of shares included in the company's share capital. The trading price varied
between EUR 0.36 and EUR 0.64. The final trading price was EUR 0.45, giving the
company a market capitalisation of EUR 21.3 million on 30 September 2011.
Own shares
On 1 January 2011, the company held 168,805 of its own shares, accounting for
0.36 per cent of the share capital and votes.
The Annual General Meeting of Shareholders held in 2010 authorised the Board of
Directors to decide on the acquisition of a maximum of 200,000 of the company's
own shares and on the conveyance of a maximum of 200,682 of the company's own
shares. The authorisations were valid for 18 months after the end of the
General Meeting, which was until 23 September 2011. The acquisition
authorisation was exercised during 2010 to acquire 123,595 shares, which means
that on 1 January 2011 the remaining authorisation was for 76,405 shares.
Within the authorisation granted to the Board of Directors, 108,507 of the
company's own shares were conveyed as emoluments to the members of Suominen
Corporation's Board of Directors.
On 30 September 2011, Suominen Corporation held a total of 60,298 of its own
shares, accounting for 0.13 per cent of the share capital and votes.
Other authorisations granted to the Board of Directors
After the period under review, on 3 October 2011, the Board of Directors
decided on a share issue and a capital loan conversion share issue, in which
198,539,108 new shares were issued. Thereafter, the Board of Directors has
authorisation to issue a further 81,460,892 new shares. There are no other
authorisations relating to rights entitling to shares in effect.
BUSINESS RISKS AND UNCERTAINTIES
Suominen's customer base is concentrated, which adds to the customer-specific
risk. Long-term contracts are preferred in the case of the largest customers.
Suominen has aimed at making general and customer-specific price increases on
its products, which in principle involves a risk of losing orders in the
future.
The units of Suominen buy a considerable amount of oil- and pulp-based raw
materials. Rapid changes in the global market prices of raw materials affect
Suominen's profitability.
Suominen has no competitors with a completely similar product offering.
However, the company has numerous regional, national or international
competitors in its different product groups. There is production overcapacity
in most product groups, and thus if Suominen Corporation is not able to compete
with an attractive product offering, it may lose some of its market share. The
competition may lead to increased pricing pressure on the company's products.
Suominen's efficiency programmes include measures to improve production
efficiency, for example through better yields, higher machine speeds and
shorter set-up times. The full impact of the efficiency measures will be seen
as soon as production volumes grow. Postponed or failed measures will have a
negative impact on the company's profit.
Suominen's credit arrangements include covenants that the company must meet. On
30 September 2011, the company's equity ratio was 27 per cent, which was at the
required minimum covenant level according to the current financial agreements.
The financial covenants included in the credit agreement to finance the Home
and Personal transaction are the net-debt-to-EBITDA ratio and debt/equity
ratio. Should Suominen default on its obligations, the banks have the right to
declare the loans due and payable and to renegotiate the terms.
On 21 September 2011, a fire broke out at the Home and Personal business area's
Mozzate plant in Italy, causing damage to one of the production lines. The
seller has valid damage and business interruption insurance, on the basis of
which it is expected that the damage will be compensated and the financial
losses caused by the interruption of business will be covered. As a consequence
of the damage, the Home and Personal business will not necessarily have the
expected impact on Suominen's net sales and financial performance.
The business transaction with Ahlstrom requires that the Brazilian authorities
approve the transfer of the part of the Home and Personal business located in
Brazil to the company to be founded under the transaction. In order to gain the
desired synergy benefits from the Home and Personal transaction, the
integration process of the business operations of the companies involved in the
transaction should be managed according to plan. Integration of the businesses
requires a considerable amount of resources, which may impede management's
possibilities to participate in the development of the business or may
negatively affect Suominen's development.
The sensitivity of Suominen Corporation's goodwill to changes in business
conditions is described in the notes to the financial statements 2010. The
business risks are described more extensively in Suominen's share issue
prospectus dated 3 October 2011.
OUTLOOK
The demand for Suominen's products is evaluated mainly on the basis of customer
contracts and use forecasts provided by customers. It is estimated that the
demand for Suominen's products will remain stable.
Prices for Suominen's products are expected to increase due to the price
increases implemented and the raw material clauses included in sales contracts.
Measures to reduce operational costs are continuing.
The net sales of the acquired business will be included in Suominen's 2011
sales figures covering a period of two months, and as a result, Suominen's net
sales are expected to improve from the previous year. The acquired business is
estimated to have a negative impact on Suominen's result after taxes when
considering also the non-recurring costs related to the business transaction.
It is estimated that the result after taxes for the whole year 2011 will
improve over 2010, but will be negative.
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors of Suominen Corporation decided, on 3 October 2011, to
execute a share issue to the public and on a conversion share issue to the
holders of Suominen's capital loan of 2008, in order to finance the acquisition
of the Home and Personal business area from Ahlstrom Corporation. A minimum of
188,888,889 and a maximum of 266,666,667 new shares were offered at the
subscription price of EUR 0.45 per share, and a maximum of 8,888,889 new shares
in the conversion share issue at the subscription price of EUR 0.45 per share.
The subscription period for the share issue and the conversion share issue
ended on 11 October 2011.
The Board of Directors approved the subscriptions of 193,739,111 new shares,
which correspond to a total of EUR 87.2 million, and the subscriptions of
4,799,997 new shares in the conversion share issue. The total principal of the
capital loan 2008 converted in the conversion share issue was EUR 2.2 million.
After the payment of the subscriptions, the remaining amount of the Company's
capital loan 2008 is EUR 1.8 million.
The shares subscribed in the share issue and in the conversion share issue
correspond together to 418.9 per cent of all the Company's existing shares and
voting rights related thereto prior to the share issues and 80.7 per cent of
all the existing shares, issued shares and new shares and voting rights related
to them following the share issue and the conversion share issue.
The shares subscribed in the share issue and the conversion share issue were
entered into the Trade Register 21 October 2011. Trading in the new shares
commenced on 24 October 2011. As a result of the share issues, the number of
Suominen's shares will increase by 198,539,108 shares to 245,934,122 shares.
The total subscriptions of the share issue and the conversion share issue are
EUR 89.3 million, and the increase in shareholders' equity was around EUR 87
million after the expenses.
On 20 October 2011, Suominen agreed upon a syndicated credit facility of EUR
150 million to finance the Home and Personal business transaction. An agreement
on the finalisation of the acquisition was reached on 20 October 2011,
according to which the right of ownership to the business and the agreements
will be transferred to Suominen on 31 October 2011. The final value of the
transaction will be specified according to the assets to be transferred in the
transaction. The Brazilian company's part of the transaction price has been
deposited in a blocked account, and will be released once the conditions of the
transaction have been fulfilled.
The Board of Directors that was elected at Suominen's Extraordinary General
Meeting began its work and convened on 20 October 2011 and elected Jorma
Eloranta as Chairman of the Board and Mikko Maijala as Deputy Chairman from
amongst its members.
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY - 30 SEPTEMBER 2011
This interim report has been prepared in compliance with IAS 34 Interim
Financial Reporting. The principles for preparing the interim report are the
same as those used for preparing the financial statements for 2010, and this
interim report should be read parallel to the financial statements for 2010.
Changes to published accounting standards and interpretations, together with
the new accounting standards that came into force on 1 January 2011, are
presented in the financial statements for 2010.
All calculations in this interim report have been prepared in compliance with
the revised IAS 1 standard, ‘Presentation of Financial Statements'. This
standard is aimed at improving users' ability to analyse and compare the
information given in financial statements by separating changes in equity of an
entity arising from transactions with owners from other changes in equity.
Non-owner changes in equity will be presented in the statement of comprehensive
income.
The figures in this interim report have not been audited.
BALANCE SHEET
EUR 1 000 9/2011 9/2010 12/2010
------------------------------------------------------------------------------
Assets
Non-current assets
Goodwill 18 498 23 404 18 498
Intangible assets 784 735 776
Tangible non-current assets 48 635 54 707 53 873
Available-for-sale financial assets 242 212 212
Held-to-maturity investments 421 354 354
Deferred tax assets 1 713 54 1 339
------------------------------------------------------------------------------
Non-current assets, total 70 293 79 466 75 052
Current assets
Inventories 22 219 26 203 24 373
Trade receivables 14 893 12 791 10 817
Other current receivables 2 785 2 397 5 666
Income tax receivables 1 424 1 081 200
Cash at bank and in hand 1 644 3 481 3 253
------------------------------------------------------------------------------
Current assets, total 42 965 45 953 44 309
Assets, total 113 258 125 419 119 361
Shareholders' equity and liabilities
Equity attributable to owners of the parent company
Share capital 11 860 11 860 11 860
Share premium account 24 681 24 681 24 681
Invested non-restricted equity fund 9 708 9 649 9 708
Fair value and other reserves -121 -195 665
Translation differences -666 437 515
Other shareholders' equity -19 909 -3 808 -14 143
------------------------------------------------------------------------------
Shareholders' equity, total 25 553 42 624 33 286
Liabilities
Non-current liabilities
Deferred tax liabilities 2 279 2 110 2 930
Provisions 280 280 280
Capital loans 2 000 4 000 4 000
Interest-bearing liabilities 35 022 39 015 35 823
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Non-current liabilities, total 39 581 45 405 43 033
Current liabilities
Interest-bearing liabilities 22 334 12 958 19 459
Capital loans 2 000 2 000 2 000
Income tax liabilities 572 69
Trade payables and other current liabilities 23 218 22 363 21 583
------------------------------------------------------------------------------
Current liabilities, total 48 124 37 390 43 042
Liabilities, total 87 705 82 795 86 075
Shareholders' equity and liabilities, total 113 258 125 419 119 361
STATEMENT OF INCOME
EUR 1 000 7-9/201 7-9/201 1-9/2011 1-9/2010 1-12/201
1 0 0
--------------------------------------------------------------------------------
Net sales 43 112 43 359 130 801 128 123 173 438
Cost of goods sold -42 139 -42 462 -124 639 -121 878 -165 277
--------------------------------------------------------------------------------
Gross profit 972 897 6 161 6 245 8 161
Other operating income 113 248 488 712 859
Sales and marketing expenses -871 -993 -2 648 -2 807 -3 927
Research and development -365 -413 -1 289 -1 384 -1 951
Administration expenses -1 778 -1 484 -5 057 -4 612 -6 333
Other operating expenses 31 -79 -125 -320 -2 564
--------------------------------------------------------------------------------
Operating profit before -1 898 -1 824 -2 470 -2 166 -5 755
impairment losses
Impairment losses -5 069
--------------------------------------------------------------------------------
Operating profit -1 898 -1 824 -2 470 -2 166 -10 824
Financial income and expenses -1 255 -1 028 -4 259 -3 154 -4 840
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before income taxes -3 153 -2 852 -6 729 -5 320 -15 664
Income taxes 316 707 1 029 1 294 1 302
--------------------------------------------------------------------------------
Profit/loss for the period -2 837 -2 145 -5 700 -4 026 -14 362
Earnings/share, EUR -0.06 -0.05 -0.12 -0.10 -0.34
STATEMENT OF COMPREHENSIVE INCOME
EUR 1 000 7-9/201 7-9/201 1-9/201 1-9/201 1-12/201
1 0 1 0 0
--------------------------------------------------------------------------------
Profit/loss for the period -2 837 -2 145 -5 700 -4 026 -14 362
Other comprehensive income
Total exchange differences on -1 650 407 -1 596 499 854
foreign
operations
Fair value changes of cash flow -261 417 -1 223 749 1 661
hedges
Other reclassifications -6 5 -18 3 -2
Income tax on other comprehensive 497 -214 733 -324 -654
income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income, total -1 420 615 -2 104 927 1 859
Total comprehensive income for the -4 257 -1 530 -7 804 -3 099 -12 503
period
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR 1 Share Share Invested Own Translat Fair Retaine Total
000 capita premium non-restri shares ion value d
l account cted differen reserv earning
equity ces es s
fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -163 515 828 -14 143 33 286
equity
at
1 Jan.
2011
Profit/l -5 700 -5 700
oss for
the
period
Other -1 181 -905 -18 -2 104
compreh
ensive
income
Share-ba 20 20
sed
payment
s
Share
issue
Dividend
Repurcha
se of
own
shares
Conveyan 120 -69 51
ce of
own
shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -43 -666 -77 -19 910 25 553
equity
at
30 Sept.
2011
EUR 1 Share Share Invested Own Translat Fair Retain Total
000 capita premium non-restric shares ion value ed
l account ted equity differen reserv earnin
fund ces es gs
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 681 0 -1 -117 -401 667 36 689
equity
at
1 Jan.
2010
Profit/l -4 026 -4 026
oss for
the
period
Other 554 370 3 927
compreh
ensive
income
Share-ba 22 22
sed
payment
s
Share 9 649 9 649
issue
Dividend -474 -474
Repurcha -213 -213
se of
own
shares
Conveyan 51 -1 50
ce of
own
shares
--------------------------------------------------------------------------------
Total 11 860 24 681 9 649 -163 437 -31 -3 809 42 624
equity
at
30 Sept.
2010
EUR 1 Share Share Invested Own Transla Fair Retaine Total
000 capita premium non-restri shares tion value d
l account cted differe reserv earning
equity nces es s
fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 681 -1 -117 -401 667 36 689
equity
at
1 Jan.
2010
Profit/l -14 362 -14 362
oss for
the
period
Other 632 1 229 -2 1 859
compreh
ensive
income
Share-ba 29 29
sed
payment
s
Share 9 708 9 708
issue
Dividend -474 -474
Repurcha -213 -213
se of
own
shares
Conveyan 51 -1 50
ce of
own
shares
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -163 515 828 -14 143 33 286
equity
at
31 Dec.
2010
CASH FLOW STATEMENT
EUR 1 000 1-9/2011 1-9/2010 1-12/2010
----------------------------------------------------------------------------
Operations
Operating profit -2 470 -2 166 -10 824
Total adjustments 5 824 6 783 14 076
----------------------------------------------------------------------------
Cash flow before change in working capital 3 354 4 617 3 252
Change in working capital 2 339 -2 224 -1 054
Financial items -3 961 -2 394 -4 626
Taxes paid 35 -57 -31
----------------------------------------------------------------------------
Cash flow from operations 1 767 -58 -2 459
Investment payments
Investments in tangible and intangible assets -3 344 -4 720 -5 966
Proceeds from disposal of fixed assets 97 687 751
and other proceeds
----------------------------------------------------------------------------
Cash flow from investing activities -3 247 -4 033 -5 215
Financing
Non-current loans drawn 3 186 2 000 8 000
Repayments of non-current loans -1 112 -5 032 -23 731
Change in commercial papers 1 986 988
Repayments of capital loans -2 000 -2 000 -2 000
Current loans drawn 17 000
Dividends paid -474 -474
Repurchase and conveyance of own shares 51 -163 -163
Share issue 9 649 9 708
----------------------------------------------------------------------------
Cash flow from financing 125 5 966 9 328
Change in cash and cash equivalents -1 355 1 875 1 654
KEY FIGURES 7-9/2011 7-9/2010 1-9/2011 1-9/2010 1-12/201
0
--------------------------------------------------------------------------------
Net sales, change, % * -0.6 -1.8 2.1 -4.7 -3.3
Gross profit, % ** 2.3 2.1 4.7 4.9 4.7
Operating profit, % ** -4.4 -4.2 -1.9 -1.7 -6.2
Financial income and expenses, -2.9 -2.4 -3.3 -2.5 -2.8
% **
Profit before income taxes, % -7.3 -6.6 -5.1 -4.2 -9.0
**
Profit for the period, % ** -6.6 -4.9 -4.4 -3.1 -8.3
Earnings/share, EUR -0.06 -0.05 -0.12 -0.10 -0.34
Equity/share, EUR *** 0.54 0.90 0.70
Cash flow from 0.04 0.00 -0.06
operations/share, EUR
Return on equity (ROE), % -25.4 -13.5 -37.3
Return on invested capital -3.7 -2.8 -10.6
(ROI), %
Equity ratio, % 22.9 34.0 27.9
Gearing, % 233.0 127.8 174.0
Gross investments, EUR 1 000 3 076 4 605 6 190
Depreciation, EUR 1 000 5 989 7 134 9 322
Impairment losses, EUR 1 000 5 069
* Compared with the corresponding period of the previous year.
** As of net sales.
*** Reference data has been corrected.
SEGMENT REPORTING
Wiping
EUR 1 000 1-9/2011 1-9/2010 Change % 1-12/2010
--------------------------------------------------------------------------------
Net sales
- Codi Wipes 42 507 42 938 -1.0 56 371
- Nonwovens 43 048 40 925 5.2 59 084
- eliminations -3 820 -4 733 -19.3 -7 296
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Total 81 735 79 130 3.3 108 159
Operating profit before impairment -1 912 -2 066 -3 699
losses
% of net sales -2.3 -2.6 -3.4
Impairment losses -4 906
Operating profit -1 912 -8 605
Assets 68 266 76 793 67 650
Liabilities 12 935 13 445 11 620
Net assets 55 331 63 349 56 030
Investments 1 097 1 943 2 278
Depreciation 3 643 4 748 6 117
Impairment losses 4 906
Average personnel 344 375 369
Flexibles
EUR 1 000 1-9/2011 1-9/2010 Change % 1-12/2010
----------------------------------------------------------
Net sales 49 789 49 627 0.3 66 140
Operating profit 167 18 -1 941
% of net sales 0.3 0.0 -2.9
Assets 46 235 47 453 45 950
Liabilities 11 077 11 188 10 048
Net assets 35 159 36 265 35 902
Investments 1 795 2 620 3 788
Depreciation 2 314 2 368 3 181
Impairment losses 163
Average personnel 488 527 521
Non-allocated items
EUR 1 000 1-9/2011 1-9/2010 1-12/2010
------------------------------------------------
Net sales -723 -634 -861
Operating profit -725 -118 -115
Assets -1 243 1 173 5 760
Liabilities 63 694 58 162 64 406
Investments 184 42 124
Depreciation 32 18 24
Average personnel 11 11 11
NET SALES BY MARKET AREA
EUR 1 000 1-9/2011 1-9/2010 1-12/2010
-----------------------------------------------
-----------------------------------------------
Finland 20 802 20 094 27 053
Scandinavia 12 436 11 266 14 821
The Netherlands 2 432 6 380 9 915
Europe, other 84 882 81 502 104 651
Other countries 10 249 8 881 16 998
-----------------------------------------------
-----------------------------------------------
Net sales, total 130 801 128 123 173 438
QUARTERLY FIGURES
EUR 1 000 IV/2010 I/2011 II/201 III/201 IV/2010-III/2
1 1 011
--------------------------------------------------------------------------------
Net sales
Wiping
- Codi Wipes 13 433 13 985 13 586 14 936 55 940
- Nonwovens 18 159 15 091 14 985 12 971 61 207
- eliminations -2 562 -1 131 -1 911 -778 -6 382
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Total 29 029 27 946 26 660 27 129 110 764
Flexibles 16 513 16 561 17 019 16 210 66 302
Non-allocated items -227 -203 -294 -227 -950
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Net sales, total 45 315 44 303 43 386 43 112 176 116
Operating profit
Wiping -623 -298 60 -1 674 -2 535
% of net sales -2.1 -1.1 0.2 -6.2 -2.3
Flexibles -1 017 -62 512 340 -227
% of net sales -6.2 -0.4 3.0 2.1 -0.3
Non-allocated items 3 -57 -230 -72 -357
--------------------------------------------------------------------------------
Operating profit before -1 637 -417 342 -1 406 -3 118
non-recurring costs
% of net sales -3.6 -0.9 0.8 -3.3 -1.8
Non-recurring costs -7 021 -195 -302 -492 -8 010
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Operating profit, total -8 658 -612 40 -1 899 -11 128
% of net sales -19.1 -1.4 0.1 -4.4 -6.3
Net financial expenses -1 686 -1 547 -1 457 -1 255 -5 945
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Profit before income taxes -10 344 -2 159 -1 417 -3 153 -17 073
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is recognised based on the estimated average income tax rate
for the full financial year.
INFORMATION ON RELATED PARTIES
Suominen has related party relationships with the members of the Board of
Directors, and the members of the Corporate Executive Team. The company has no
investments in associated companies. Salaries paid to the related parties
amounted to EUR 708 thousand, share-based payments EUR 13 thousand, unsecured
loans EUR 440 thousand, and interest payments EUR 76 thousand.
MOVEMENTS IN BORROWINGS
EUR 1 000 1-9/2011 1-9/2010
-----------------------------------------------------------------------------
Total borrowings on 1 January 61 282 60 861
Current loans from financial institutions on 1 January 17 000
Change in current loans from financial institutions 4 345
-----------------------------------------------------------------------------
Current loans from financial institutions on 30 September 21 345
Commercial papers on 1 January 988
Change in commercial papers 1 986
-----------------------------------------------------------------------------
Commercial papers on 30 September 988 1 986
Non-current loans on 1 January 37 294 52 861
Change in non-current loans -2 272 -2 874
-----------------------------------------------------------------------------
Non-current loans on 30 September 35 022 49 987
Capital loans on 1 January 6 000 8 000
Change in capital loans -2 000 -2 000
-----------------------------------------------------------------------------
Capital loans on 30 September 4 000 6 000
Total borrowings on 30 September 61 356 57 973
CHANGES IN FIXED ASSETS
1-9/2011 1-9/2010 1-12/2010
EUR 1 000 Tangib Intangib Tangib Intangib Tangib Intangib
le le le le le le
--------------------------------------------------------------------------------
Book value at the 53 873 776 57 044 795 57 044 795
beginning of the period
Investments 2 808 171 4 389 87 5 884 177
Decreases -864 -302 -2 -466 -1
Depreciation -5 826 -163 -6 988 -146 -9 127 -195
Translation differences -572 -1 564 538
and other changes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Book value at the end of 49 419 784 54 707 734 53 873 776
the period
CONTINGENT LIABILITIES
EUR 1 000 9/2011 9/2010 12/2010
------------------------------------------------------------------
For own debt
Real estate mortgages 26 045 24 045 24 045
Floating charges 50 000 50 000 60 069
Pledged subsidiary shares 82 982 82 982
Other own commitments
Operating leases, real estates 11 906 15 251 13 403
Operating leases, machinery and equipment 4 862 2 764 2 685
Guarantee commitments 1 277 1 825 1 995
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
EUR 1 000 9/2011 9/2010 12/2010
--------------------------------------------------
Currency derivatives
Nominal value 5 237 5 568 5 172
Fair value 69 -176 -138
Interest rate derivatives
Nominal value 9 333 14 500 13 833
Fair value -81 -223 -143
Electricity derivatives
Nominal value 3 435 2 962 2 638
Fair value -132 158 1 249
Helsinki, 25 October 2011
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Mr. Petri Rolig, President and CEO, tel. +358 (0)10 214 300
Mr. Arto Kiiskinen, Vice President and CFO, tel. +358 (0)10 214 300
Attachment:
Special purpose combined income statement of the carve-out figures of the Home
and Personal business area
Suominen produces high-quality flexible packaging, wet wipes and nonwovens for
industry and the retail sector. The Group is one of Europe's leading
manufacturers in all its business areas, with operations in Finland, Poland,
the Netherlands, Sweden and Russia. The Group had net sales of EUR 173 million
in 2010 and it employs around 900 people. Suominen is listed on the NASDAQ OMX
Helsinki. www.suominen.fi
ATTACHMENT TO THE INTERIM REPORT
SPECIAL PURPOSE COMBINED INCOME STATEMENT OF THE CARVE-OUT FIGURES OF THE HOME
AND PERSONAL BUSINESS AREA
Special purpose combined income statement (unaudited)
EUR 1 000 7-9/201 7-9/201 1-9/2011 1-9/2010 1-12/201
1 0 0
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Net sales 87 041 78 687 250 492 217 855 294 164
Cost of goods sold -80 594 -70 781 -228 167 -196 654 -266 046
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Gross profit 6 447 7 906 22 325 21 201 28 118
Sales and marketing expenses -1 998 -1 208 -5 287 -3 888 -4 929
Research and development -1 313 -1 365 -3 946 -4 002 -5 256
Administration expenses -3 787 -3 003 -11 524 -9 399 -12 771
Other operating income 303 34 1 132 297 299
Other operating expenses -256 -200 -434 -79 -63
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Operating profit/loss before -604 2 163 2 266 4 130 5 399
impairment losses
Impairment losses -46
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -604 2 163 2 266 4 130 5 353
The information given above is based on Ahlstrom Corporation's unaudited
special purpose combined financial information. The financial information
complies with the same accounting principles as those used in the combined
financial statements presented in the listing prospectus of the share issue
published on 3 October 2011 concerning the Home and Personal business area. The
figures of the Brazilian unit are included in the financial information. The
Brazilian part of the business transaction is expected to be completed during
the first quarter of 2012, and the unit's figures will be included in
Suominen's figures after the transaction has been completed.
The Home and Personal business at the centre of the business transaction does
not completely correspond to the Home and Personal segment reported by Ahlstrom
Corporation, because the business transaction includes profit units that are
not part of Ahlstrom Corporation's Home and Personal segment.
The Home and Personal business and its production plants, the Trading units and
profit units have not previously constituted an independent legal subgroup
within Ahlstrom Corporation. The unaudited special purpose financial
information has thus been compiled as a combination of these. Certain
production plants of Ahlstrom Corporation's subsidiaries have included Home and
Personal business operations, in the profit units of production plants and in
Trading units.
The following subsidiaries (“Group companies”) of Ahlstrom Corporation have
involved Home and Personal business operations and they have been combined with
the Home and Personal business in both Ahlstrom Corporation's segment reporting
and in this unaudited special purpose combined financial information, as
follows:
-- Ahlstrom Nonwovens LLC (USA), of which the Bethune and Greenbay production
facilities, as well as two of the Windsor Locks production lines, have been
combined with the Home and Personal business area;
-- Ahlstrom Turin S.p.a (Italy), of which the Milan production plants have
been combined with the Home and Personal business;
-- Ahlstrom Brasil Indústra e Comércio de Papís Especiais Ltda (Brazil), of
which the Paulinia production plant has been combined as part of the Home
and Personal business;
-- Ahlstrom Alicante Nonwovens S.A.U (Spain), which has been fully combined as
part of the Home and Personal business;
-- Ahlstrom Ställdalen AB, Ahlstrom Chirnside Ltd, Ahlstrom Specialities SAS,
Ahlstrom Brignoud SAS, and Ahlstrom Tampere Oy, of which the Trading units
that were part of the Home and Personal business have been combined as part
of the Home and Personal business.
Of the Ahlstrom Group's other segments, eight profit units have been combined
for the unaudited special purpose combined financial information for the Home
and Personal business. These profit units are part of the operations of the
above-mentioned Home and Personal production plants.
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