2013-04-19 07:30:00 CEST
2013-04-19 07:30:08 CEST
REGULATED INFORMATION
Suominen Oyj - Interim report (Q1 and Q3)
Suominen Corporation's Interim Report for January 1 - March 31, 2013: Suominen increased its net sales and improved its financial result
Helsinki, Finland, 2013-04-19 07:30 CEST (GLOBE NEWSWIRE) -- Suominen
Corporation Interim Report 19 April, 2013 at 8:30am (EEST)
SUOMINEN CORPORATION'S INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2013:
SUOMINEN INCREASED ITS NETSALES AND IMPROVED ITS FINANCIAL RESULT
KEY FIGURES 1-3/2013 1-3/2012 1-12/2012
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Net sales, EUR million 122.0 111.1 454.9
Operating profit before 4.9 2.7 13.7
non-recurring items, EUR million
Operating profit, EUR million 4.9 3.2 0.9
Profit/loss for the period, EUR million 1.1 -0.3 -11.9
Earnings/share, EUR 0.00 0.00 -0.05
Cash flow from operations/share, EUR -0.01 -0.03 0.10
Return on invested capital (ROI), % 1.2 -0.6 0.4
Gearing, % * 102.0 112.4 101.0
* Data from comparison period revised.
Highlights in January-March 2013:
-Net sales grew by 10% and amounted to EUR 122.0 million (111.0)
-Operating profit excluding non-recurring items grew by 81% to EUR 4.9 million
(2.7)
-Suominen repeats its estimate according to which the company expects its net
sales for the full year 2013 to remain at the level of 2012. Operating profit
excluding non-recurring items is expected to improve from year 2012.
Nina Kopola, President and CEO:
“In the European markets, consumers' confidence in their personal financial
situation improved slightly since the turn of the year, but purchasing behavior
remained relatively cautious. However, in North America, Suominen's other main
market area, the operating environment also in January-March 2013 was more
favorable than it was in Europe.
Suominen had a positive start to 2013. Our net sales increased to EUR 122.0
million (111.1), and with our operating profit reaching EUR 4.9 million (3.2),
our profitability also improved. Good demand for nonwovens, particularly in
North America, boosted our net sales, but the European markets also developed
favorably. The leaner cost structure we achieved through our Summit program,
which ended in March, was reflected in our first quarter results, showing a
significant improvement in profitability.
In addition, I am especially pleased with Flexibles' development in the first
quarter. Some of the measures of the business recovery program launched at the
start of the year are already beginning to show in the segment's key figures.
The Flexibles segment's net sales grew and operating profit turned positive.
“The Nonwovens business unit, which is part of the Wiping segment and makes up
roughly 80% of our net sales, showed stable development in the first quarter of
the year. We will steadfastly continue with the implementation of our strategy,
which was renewed at the end of last year, and within that framework we are
launching two new business development programs in the Nonwovens business area.
The goals of these programs are to harmonize processes and to further improve
product development, which will enable us to accelerate our customers' business
and increase the share of products with higher added value in our portfolio, in
keeping with Suominen's strategy.”
GROUP NET SALES AND FINANCIAL RESULT
In the first quarter of 2013, Suominen's net sales were EUR 122.0 million
(111.1). Operating profit before non-recurring items was EUR 4.9 million (2.7)
and after them EUR 4.9 million (3.2). Suominen did not report any non-recurring
items during the reporting period. Profit before taxes was EUR 2.5 million
(0.5) and profit after taxes EUR 1.1 million (-0.3).
Net sales of the Suominen Group increased 10% from the comparison period,
mainly thanks to the favorable demand for nonwovens materials in North America.
In the comparison period, net sales were affected by the closure of a nonwovens
production line in Italy due to fire damage. The closure lasted until May 2012.
Sales volumes of the Nonwovens business unit, reported under the Wiping
segment, grew from the comparison period. Due to the product mix sold in
January-March 2013, average sales prices declined. The benefits generated
during 2012 in the integration of Suominen and Ahlstrom's Home and Personal
business, acquired in late 2011, were clearly visible in the development of the
Nonwovens business unit. The Summit program that aimed at integration of the
businesses and the realization of synergy benefits, reached its cost-reduction
targets, and the project was completed as planned in March 2013. The measures
and procedures included in the project will be incorporated into the daily
operations of Nonwovens, in keeping with the Group strategy that aims to
achieve significant improvements in profitability. The markets of the products
supplied by the Codi Wipes business unit were affected by the slowing economic
growth in Europe. Sales of Codi Wipes declined from the comparison period.
In the Flexibles segment, the business turnaround program initiated at the turn
of the year proceeded according to plan. The segment increased its net sales
and its operating profit turned slightly positive.
Cash flow from operations in January-March was EUR -2.1 million (-6.4). EUR 8.4
million (12.9) in working capital was tied up in the first quarter of 2013,
representing 6.9% of the net sales. The change in working capital was in line
with the seasonal fluctuations typical for Suominen's business. Capital
expenditure was kept at a low level.
COMPLETION OF THE BUSINESS ACQUISITION
The acquisition of the Brazilian unit belonging to the Home and Personal
business operations acquired from Ahlstrom at the end of 2011 has been delayed.
Suominen and Ahlstrom are continuing to examine the prerequisites and
alternatives for completing the transaction.
FINANCING
The Group's interest-bearing net liabilities amounted to EUR 100.6 million
(123.5) at the end of the review period. In accordance with the company's
financing agreements, the net debt to EBITDA ratio was not to exceed 4.7 and
the gearing ratio not to exceed 145% in the end of the first quarter. At the
end of the first quarter, on 31 March 2013, the net debt to EBITDA was 2.9 and
the gearing ratio 102%.
In January-March, net financial expenses were EUR 2.4 million (2.7), or 1.9%
(2.5%) of net sales. A total of EUR 8.4 million was tied up in working capital
(12.9 tied up). Trade receivables amounting to EUR 13.6 million (12.1) were
sold to the bank. The equity ratio was 34.7% (32.8%) and the gearing 102.0%
(112.4%). Cash flow from operations was EUR -2.1 million (-6.4), representing a
cash flow of EUR -0.01 per share (-0.03).
CAPITAL EXPENDITURE
The company's gross investments totaled EUR 0.8 million (0.5) in January-March.
Planned depreciation amounted to EUR 4.7 million (4.9). Nonwovens accounted for
EUR 0.1 million (0.3), Codi Wipes for EUR 0.1 million (0.1), Flexibles for EUR
0.4 million (0.1) and the parent company for EUR 0.1 million (0.1) of the total
investments. The investments in Nonwovens and Codi Wipes business units were in
maintenance. The Flexibles segment invested in new laser perforation equipment.
NET SALES AND FINANCIAL RESULT IN SEGMENTS
Wiping
The Wiping segment of Suominen consists of two business units: Nonwovens and
Codi Wipes. Nonwovens business unit supplies nonwovens as roll goods for wiping
products and medical applications. Codi Wipes converts nonwovens into wet wipes
and supplies them in consumer packages to customers.
The net sales of the Wiping segment totaled EUR 107.8 million (97.5) in
January-March 2013. The operating profit of the segment before and after
non-recurring items was EUR 4.3 million (3.8). The segment did not report any
non-recurring items during the reporting period.
Net sales of the Nonwovens business unit totaled EUR 97.2 million (85.7) in
January-March 2013. Consumer demand in the wet wipes applications favored on
the North American markets was stronger than in product areas typical for
Europe. In the European market, the competitive environment remained tight.
However, Suominen's delivery volumes grew both in North America and in Europe.
The main application areas for nonwoven materials were distributed as follows:
baby wipes accounted for 43%, household wipes for 17%, personal care wipes for
22%, and industrial wipes for 12% of sales. The shares of personal care and
industrial applications grew, while the shares of baby and household wipes
declined from the corresponding period last year.
Costs of the Nonwovens business unit declined thanks to the Summit program
commenced in early 2012 and completed in March 2013..
Net sales of the Codi Wipes business unit decreased by 12% to EUR 11.6 million
(13.1). Price competition in Europe, the main market area for Codi Wipes,
remained fierce. In January-March, the share of personal hygiene wipes in sales
grew from the previous year's level to 52%. The share of moist toilet wipes
grew to 10%, while the share of baby wipes decreased to 37%.
Flexibles
The Flexibles segment produces printed plastic film materials for consumer
packaging for industry and trade, as well as security and system packaging, for
example for companies in the security business and for paper wholesalers.
In January-March 2013, net sales of the Flexibles segment totaled EUR 14.4
million (13.9), showing an increase of 4% from the previous year. Flexibles
obtained significant new customers during the review period. Hygiene and food
packaging generated more than 70% of the segment's net sales. In January-March,
sales of hygiene and food packaging as well as security and system packaging
increased, whereas sales of retail carrier bags declined from the comparison
period.
The segment's operating profit was EUR 0.0 million (-0.6) excluding
non-recurring items and EUR 0.0 million (-0.1) including them. The segment did
not report any non-recurring items during the reporting period. The financial
result of the segment turned positive thanks to the extensive business
turnaround program initiated at the turn of the year.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
The registered number of Suominen's issued shares totals 245,934,122 shares,
equaling a share capital of EUR 11,860,056.00.
Annual General Meeting
The Annual General Meeting (AGM) of Suominen Corporation was held on 26 March,
2013. The General Meeting decided that no dividend will be paid for the
financial year 2012.
The AGM adopted the financial statements and the consolidated financial
statements for the financial year 2012 and discharged the members of the Board
of Directors and the President and CEO from liability.
The AGM confirmed the number of members of the Board of Directors to be five
(5). The AGM re-elected Mr Risto Anttonen, Mr Jorma Eloranta, Ms Suvi
Hintsanen, Mr Hannu Kasurinen and Mr Heikki Mairinoja as the members of the
Board of Directors for the next term of office, that expires at the end of the
first Annual General Meeting of Shareholders following their election. In its
constitutive meeting, the Board of Directors elected Jorma Eloranta as its
Chairman and Risto Anttonen as Deputy Chairman.
PricewaterhouseCoopers Oy, Authorized Public Accountants, was re-elected as
auditor, with Heikki Lassila, Authorized Public Accountant, as the principal
auditor of Suominen Corporation.
The AGM resolved to amend the section 1 of the Articles of Association of the
company so that the domicile of the company is Helsinki. In addition, the AGM
decided that the second sentence regarding the venue of a General Meeting will
be deleted from section 10 of the Articles of Association.
The AGM resolved to establish a permanent Nomination Committee. The Nomination
Committee consists of the three largest shareholders or representatives of the
three largest shareholders of the company and the Chairman of the Board of
Directors of Suominen Corporation.
The AGM authorized the Board of Directors to decide on the repurchase of the
company's own shares and to decide on a share issue and issuance of special
rights entitling to shares.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 31 March 2013 was 1,661,928 shares, accounting for 0.7% of the share
capital and votes. The trading price varied between EUR 0.35 and EUR 0.44.
The closing trading price was EUR 0.36, giving the company a market
capitalization of EUR 88,514,577 on 31 March 2013.
Own shares
On 1 January 2013 and on 31 March 2013, Suominen Corporation held 60,298 of its
own shares, accounting for 0.0% of the share capital and votes.
Stock options
Option right holders hold 100,000 of Suominen's 2009B stock options. During the
reporting period 100,000 2009B stock options were returned to the company. The
subscription period for the 2009B stock options is from 2 May 2012 to 30
October 2013 and the subscription price is EUR 0.96.
As the registered number of Suominen's issued shares totals 245,934,122, the
number of shares may rise to a maximum of 246,034,122 after stock option
subscriptions.
Share-based rewards
The target group of Suominen's share-based incentive plan consists of
approximately 14 employees. The rewards to be paid on the basis of the plan
correspond to the value of an approximate maximum total of 5,050,000 Suominen
Corporation shares, including also the cash-settled part. The aim of the plan
is to combine the objectives of the shareholders and key employees in order to
increase the value of the company, to commit the key employees to the company,
and to offer them a competitive reward plan based on long-term shareholding in
the company. The plan includes one performance period, the calendar years
2012-2014. The potential reward from the performance period will be based on
Suominen Group's cumulative Earnings before Interest, Taxes, Depreciation and
Amortization (EBITDA) and cumulative cash flow, and it will be paid in 2015
partly in the company's shares and partly in cash.
Authorizations of the Board of Directors
The Annual General Meeting authorized the Board of Directors to repurchase a
maximum of 3,000,000 of the company's own shares. The authorization shall be
valid until 30 June 2014. The Board of Directors is also authorized to decide
on issuing new shares and/or conveying the company's own shares held by the
company and/or granting special rights entitling to shares referred to in
Chapter 10, Section 1 of the Finnish Companies Act. A maximum of 50,000,000 new
shares may be issued. The maximum number of new shares that may be subscribed
and own shares held by the company that may be conveyed by virtue of the
special rights granted by the company is 10,000,000 shares in total which
number is included in the maximum number stated earlier (50,000,000). The
authorization shall be valid until 30 June 2016.
BUSINESS RISKS AND UNCERTAINTIES
Suominen and Ahlstrom continue to negotiate the prerequisites and alternatives
for completing the transaction of the Brazilian unit of Ahlstrom's Home and
Personal business. The conditions for achieving a solution are that a common
agreement be reached on the acquisition and that financers approve of the
acquisition and its financing. However, the delay or cancellation of the
acquisition of the Brazilian unit would not cause financial losses for
Suominen.
The estimate on the development of Suominen's net sales is in part based on
forecasts and delivery plans received from customers. Changes in these
forecasts and plans resulting from changes in the market conditions or in
customers' inventory levels may affect Suominen's net sales. Due to the
continued uncertainty in the general economic situation and the cautious
consumer purchasing habits, the forecasts include uncertainty.
Suominen's customer base is fairly concentrated, which adds to the
customer-specific risk. Long-term contracts are preferred in the case of the
largest customers. In practice the customer relationships are long-term and
last for several years.
Suominen purchases significant amounts of oil and pulp-based raw materials
annually. Raw materials are the largest cost item for operations. Rapid changes
in the global market prices of raw materials affect the company's
profitability. Extended interruptions in the supply of Suominen's main raw
materials could disrupt production and have a negative impact on the Group's
overall business operations. As Suominen sources its raw materials from a
number of major international suppliers, significant interruptions are
unlikely.
Suominen has numerous regional, national and international competitors in its
different product groups. There is currently oversupply in several product
groups, particularly in Europe. If Suominen is not able to compete through an
attractive product offering, it may lose some of its market share, and the
competition may lead to increased pricing pressure on the company's products.
The Group's damage risks are insured in order to guarantee the continuity of
operations. Suominen has valid damage and business interruption insurance
according to which it is estimated that the damages can be covered and the
financial losses caused by an interruption compensated.
Suominen's credit arrangements include covenants that the company must meet. In
October 2012, Suominen and its financers agreed on adjusted financial
covenants. At the end of 2013, Suominen's net debt to EBITDA ratio may not
exceed 3.6 and the company's gearing ratio must be less than 125%. In this
interim report, these key figures are 2.9 and 102%.
The sensitivity of Suominen's goodwill to changes in business conditions is
described in the notes to the financial statements 2012. Actual cash flows may
deviate from the forecasted future discounted cash flows, as the long economic
lifetime of the company's non-current assets, and changes in the estimated
product prices, production costs, and interest rates used in discounting may
result in write-downs. The fair value based on the value in use of assets or
businesses in total or in part does not necessarily correspond to the price
that a third party would pay for them.
General risks related to business operations are described in the Report of the
Board of Directors 2012.
BUSINESS ENVIRONMENT IN JANUARY-MARCH 2013
Suominen's products are used in daily consumer goods, such as wet wipes and
plastic packaging. The general economic situation determines the development of
consumer demand, even though the demand for consumer goods is not very cyclical
in nature. Europe and North America are the main market regions for Suominen.
In the European markets, consumers' confidence in their personal financial
situation improved slightly since the turn of the year, but purchasing behavior
remained relatively cautious. The operating environment in North America,
Suominen's other main market area, was more favorable than it was in Europe,
also in January-March 2013. Consumers in North America show more stable
confidence in their personal financial situation, and, according to the
Purchasing Managers' Indices, the outlook of business and industry on the
general financial situation is also more positive in North America than in
Europe.
Suominen assesses the trend in demand for its products on the basis of both the
general market situation and, above all, on the basis of the framework
agreements drawn up with its clients. Suominen estimates that in 2013 demand
for its products will remain at the level of 2012.
Suominen will continue with the implementation of its strategy, and within its
framework launches two new business development programs. The goals of these
programs are to harmonize processes and to further improve product development,
which will enable Suominen to accelerate its customers' operations and increase
the share of products with higher added value in its portfolio, in keeping with
its strategy.
OUTLOOK FOR 2013
The company estimates that its net sales for the full year 2013 will remain at
the level of 2012. Operating profit excluding non-recurring items is expected
to improve from year 2012. In 2012, Suominen's net sales were EUR 454.9 million
and operating profit excluding non-recurring items EUR 13.7 million.
SUOMINEN GROUP CONSOLIDATED 1 JANUARY - 31 MARCH 2013
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 2012, and this
interim report should be read parallel to the financial statements for 2012.
Changes to published accounting standards and interpretations, together with
the new accounting standards that came into force on 1 January 2013, are
presented in the financial statements for 2012.
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 analyze 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.
According to the revised IAS 19 standard ‘Employee Benefits', which came into
force on January 1, 2013, the corridor method is not applied to actuarial gains
and losses, and changes in actuarial gains and losses are recognized in other
comprehensive income. Net interest expenses are determined by multiplying the
net debt (or receivables) with the interest rate used in discounting, and the
difference between the real return on assets and the return calculated using
the interest rate used in discounting is recognized in other comprehensive
income. Previously unrecognized actuarial gains and losses are also recognized
in other comprehensive income. The same applies to other long-term employee
benefits, although changes in recognized items are recorded through profit or
loss. The process concerning termination benefits, particularly the date when
the entity recognizes its liability for termination benefits, is also defined
in more detail.
The IAS 19 standard is not expected to have a material impact on Suominen's
financial statements or operating result. The standard does, however, require
retroactive application for the financial statement figures of comparison
years. Thus, the net debt of the Group's defined benefit pensions and the
statement of comprehensive income from the 2012 comparison year has, as a
result of the elimination of the corridor approach to recognize actuarial gains
and losses, been changed to reflect the retroactive application. As a result of
the revision to IAS 19, the Group's pension liabilities increased from EUR 845
thousand to EUR 1,092 thousand as of the December 31, 2012 financial
statements, and actuarial losses of EUR 247 thousand for the comparison period
have been recognized in the other comprehensive income statement items of the
2012 comparison data.
The figures in this interim report have not been audited.
BALANCE SHEET
EUR 1,000 31 Mar 31 Mar 31 Dec
2013 2012 2012
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Assets
Non-current assets
Goodwill 26,715 34,298 26,715
Intangible assets 12,101 12,995 12,529
Tangible assets 115,898 133,171 118,019
Available-for-sale financial assets 19 19 19
Held-to-maturity investments 449 438 466
Deferred tax assets 6,273 2,766 6,067
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Non-current assets, total 161,455 183,687 163,816
Current assets
Inventories 40,333 44,241 42,431
Trade receivables 56,370 54,778 45,328
Other current receivables 10,482 18,061 11,772
Income tax receivables 1,348 1,470 1,293
Financial assets on escrow 25,000
Cash at bank and in hand 13,801 8,039 14,301
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Current assets, total 122,334 151,589 115,125
Assets, total 283,789 335,276 278,940
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 97,054 97,054 97,054
Fair value and other reserves -1,024 -423 -1,253
Translation differences 852 740 -549
Other shareholders' equity * -34,826 -24,025 -35,782
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Shareholders' equity, total * 98,597 109,887 96,011
Liabilities
Non-current liabilities
Deferred tax liabilities 5,706 2,686 5,653
Provisions 280 280 280
Other non-current liabilities * 1,304 1,218 1,282
Interest-bearing liabilities 90,808 134,142 90,027
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Non-current liabilities, total 98,098 138,326 97,242
Current liabilities
Interest-bearing liabilities 23,571 21,471 20,571
Capital loans 920 920
Income tax liabilities 1,416 2,081 737
Trade payables and other current liabilities 62,107 62,587 63,460
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Current liabilities, total 87,094 87,063 85,688
Liabilities, total 184,945 225,389 182,683
Shareholders' equity and liabilities, total 283,789 335,276 278,940
* Data from comparison period revised.
STATEMENT OF INCOME
EUR 1,000 1-3/2013 1-3/2012 1-12/2012
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Net sales 122,013 111,087 454,909
Cost of goods sold -109,924 -102,083 -417,262
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Gross profit 12,089 9,004 37,647
Other operating income 742 1,972 6,838
Sales and marketing expenses -2,053 -1,859 -7,574
Research and development -1,027 -711 -3,903
Administration expenses -4,716 -5,515 -18,716
Other operating expenses -136 -185 -568
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Operating profit before non-recurring items 4,899 2,706 13,724
Non-recurring items 484 -12,777
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Operating profit 4,899 3,190 947
Financial income and expenses -2,359 -2,731 -10,410
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Profit before income taxes 2,540 459 -9,463
Income taxes -1,438 -750 -2,409
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Profit/loss for the period 1,102 -291 -11,872
Earnings/share, EUR 0.00 0.00 -0.05
STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 1-3/201 1-3/201 1-12/201
3 2 2
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Profit/loss for the period 1,102 -291 -11,872
Other comprehensive income:
Items that may be reclassified subsequently to
profit or loss:
Currency translation differences on 1,474 1,095 -438
foreign operations
Fair value changes of cash flow hedges 303 63 -1,007
Other reclassifications -168 -3 -6
Total 1,609 1,155 -1,451
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Items that will not be reclassified subsequently to
profit or loss:
Actuarial gains and losses * -247
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Total 0 0 -247
Income tax on other comprehensive income -147 280 765
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Total other comprehensive income 1,462 1,435 -933
Total comprehensive income for the period 2,564 1,144 -12,805
* Data from comparison period revised.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
1. Share capital
2. Share premium account
3. Invested non-restricted equity fund
4. Own shares
5. Translation differences
6. Fair value reserves
7. Retained earnings
8. Total
EUR a. b. c. d. e. f. g. h.
1,000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 -549 -1,210 -35,783 96,011
equity
at 1
Jan
2013
Profit/l 1,102 1,102
oss for
the
period
Other 1,401 229 -168 1,462
compreh
ensive
income
Share-ba 22 22
sed
payment
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 852 -981 -34,827 98,597
equity
at 31
Mar
2013
EUR a. b. c. d. e. f. g. h.
1,000
--------------------------------------------------------------------------------
-----------------
Total 11,860 24,861 97,054 -43 -637 -440 -23,738 108,737
equity
at 1
Jan
2012
Profit/l -291 -291
oss for
the
period
Other 1,377 61 -3 1,435
compreh
ensive
income
Share-ba 6 6
sed
payment
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 740 -379 -24,025 109,887
equity
at 31
Mar
2012
EUR 1,000 a. b. c. d. e. f. g. h.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity at 1 11,860 24,681 97,054 -43 -637 -441 -23,737 108,737
Jan 2012
Profit/loss for the -11,872 -11,872
period
Other comprehensive 88 -769 -253 -934
income *
Share-based 79 79
payments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity at 31 11,860 24,681 97,054 -43 -549 -1,210 -35,783 96,011
Dec 2012
* Data from comparison period revised.
CASH FLOW STATEMENT
EUR 1,000 1-3/2013 1-3/2012 1-12/2012
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Operations
Operating profit 4,899 3,190 947
Total adjustments 4,667 4,430 31,775
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Cash flow before change in working capital 9,567 7,621 32,722
Change in working capital -8,362 -12,872 4,961
Financial items -2,330 -1,085 -9,705
Taxes paid -966 -108 -3,040
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Cash flow from operations -2,091 -6,444 24,938
Investment payments
Investments in tangible and intangible assets -841 -714 -3,619
Proceeds from disposal of fixed assets and other 48 1,867 2,115
proceeds
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Cash flow from investing activities -793 1,153 -1,504
Financing
Repayments of non-current loans -3,325 -38,713
Repayments of capital loans -920 -1,731 -920
Change in current loans 6,300 -920 -10,550
Cash flow from financing 2,055 -2,651 -50,183
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Change in cash and cash equivalents * -829 -7,942 -26,749
Cash and cash equivalents 14,301 40,887 40,887
Unrealized exchange rate differences 329 92 164
Change in cash and cash equivalents -829 -7,942 26,749
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Cash and cash equivalents 13,801 33,038 14,301
* Also includes the change in financial assets on escrow.
KEY FIGURES 1-3/2013 1-3/2012 1-12/2012
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Net sales, change, % * 9.8 155.0 113.2
Gross profit, % ** 9.9 8.1 8.3
Operating profit, % ** 4.0 2.9 0.2
Financial income and expenses, % ** -1.9 -2.5 -2.3
Profit before income taxes, % ** 2.1 0.4 -2.1
Profit for the period, % ** 0.9 -0.3 -2.6
Earnings/share, EUR 0.00 0.00 -0.05
Equity/share, EUR 0.40 0.45 0.39
Cash flow from operations/share, EUR -0.01 -0.03 0.10
Return on equity (ROE), % *** -10.1 -13.3 -11.2
Return on invested capital (ROI), % 1.2 -0.6 0.4
Equity ratio, % *** 34.7 32.8 34.4
Gearing, % *** 102.0 112.4 101.0
Gross investments, EUR 1,000 764 524 4,008
Depreciation, EUR 1,000 4,676 4,909 19,606
Impairment losses, EUR 1,000 12,816
* Compared with the corresponding period of the previous year.
** As of net sales.
*** Data from comparison period revised.
SEGMENT REPORTING
Wiping
EUR 1,000 1-3/2013 1-3/2012 Change % 1-12/2012
--------------------------------------------------------------------------------
Net sales
- Codi Wipes 11,578 13,118 -11.7 49,436
- Nonwovens 97,233 85,673 13.5 357,873
- eliminations -1,039 -1,333 -22.0 -4,108
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 107,772 97,458 10.6 403,201
Operating profit before non-recurring 4,348 3,751 15.9 18,803
items
% of net sales 4.0 3.8 4.7
Operating profit 4,348 3,751 15.9 5,542
% of net sales 4.0 3.8 1.4
Assets 239,457 247,341 237,084
Liabilities 52,716 50,676 53,446
Net assets 186,741 196,665 183,638
Investments 200 372 2,608
Depreciation 3,637 3,818 15,358
Impairment losses 12,816
Average personnel 686 761 758
Flexibles
EUR 1,000 1-3/2013 1-3/2012 Change % 1-12/2012
--------------------------------------------------------------------------------
Net sales 14,427 13,906 3.7 52,698
Operating profit before non-recurring 1 -576 100.2 -2,786
items
% of net sales 0.0 -4.1 -5.3
Operating profit 1 -92 101.3 -2,302
% of net sales 0.0 -0.7 -4.4
Assets 37,703 42,804 37,087
Liabilities 10,037 10,239 8,634
Net assets 27,666 32,565 28,453
Investments 437 79 554
Depreciation 672 751 2,868
Average personnel 459 446 453
Non-allocated items
EUR 1,000 1-3/2013 1-3/2012 1-12/2012
------------------------------------------------
Net sales -186 -278 -991
Operating profit 550 -468 -2,293
Assets 6,628 45,132 4,770
Liabilities * 122,439 164,475 120,851
Investments 127 73 845
Depreciation 367 339 1,380
Average personnel 18 9 9
* Data from comparison period revised.
NET SALES BY MARKET AREA
EUR 1,000 1-3/2013 1-3/2012 1-12/2012
------------------------------------------------------
------------------------------------------------------
Finland 5,681 6,053 23,917
Europe, other 55,132 48,889 205,570
North and South America 58,411 52,902 213,776
Other countries 2,789 3,243 11,645
------------------------------------------------------
------------------------------------------------------
Net sales, total 122,013 111,087 454,909
QUARTERLY FIGURES
EUR 1 000 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2012
-
Q1/2013
--------------------------------------------------------------------------------
Net sales
Wiping
- Codi Wipes 12,278 12,161 11,880 11,578 47,896
- Nonwovens 89,394 97,917 84,890 97,233 369,433
- eliminations -1,175 -711 -889 -1,039 -3,814
--------------------------------------------------------------------------------
Total 100,496 109,366 95,880 107,772 413,515
Flexibles 12,766 12,658 13,369 14,427 53,219
Non-allocated items -180 -255 -278 -186 -899
--------------------------------------------------------------------------------
Net sales, total 113,082 121,769 108,971 122,013 465,835
Operating profit
Wiping 3,874 8,146 3,032 4,348 19,400
% of net sales 3.9 7.4 3.2 4.0 4.7
Flexibles -816 -576 -818 1 -2,209
% of net sales -6.4 -4.5 -6.1 0.0 -4.2
Non-allocated items -664 -891 -270 550 -1,274
--------------------------------------------------------------------------------
Operating profit before 2,394 6,679 1,944 4,899 15,916
non-recurring items
% of net sales 2.1 5.5 1.8 4.0 3.4
Non-recurring items -2,700 -445 -10,116 -13,261
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit, total -306 6,234 -8,171 4,899 2,656
% of net sales -0.3 5.1 -7.5 4.0 0.6
Net financial expenses -2,494 -2,954 -2,230 -2,359 -10,038
--------------------------------------------------------------------------------
Profit before income taxes -2,800 3,280 -10,402 2,540 -7,382
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is calculated by country, on the basis of taxable results
and income tax rates.
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, and Ahlstrom
Corporation, including its subsidiaries and associated companies. The company
has no investments in associated companies. Salaries paid to the related
parties amounted to EUR 676 thousand, obligatory pension payments EUR 30
thousand, voluntary pension payments EUR 52 thousand and share-based payments
EUR 40 thousand.
Other related-party transactions
EUR 1,000 1-3/2013 1-3/2012 1-12/2012
--------------------------------------------------------------
--------------------------------------------------------------
Sales of goods and services 4,409 2,780 19,653
Purchases of goods and services 12,712 6,950 54,191
Trade and other receivables 1,367 2,003 1,049
Trade and other payables 1,477 4,898 2,165
Other related-party transactions are transactions with Ahlstrom Corporation and
its subsidiaries and associated companies.
CHANGES IN BORROWINGS
EUR 1,000 1-3/2013 1-3/2012 1-12/2012
--------------------------------------------------------------------------------
Total borrowings on 1 January 111,518 161,730 161,730
Current loans from financial institutions on 1 20,571 19,929 19,929
January
Change in current loans from financial 3,000 1,542 642
institutions
--------------------------------------------------------------------------------
Current loans from financial institutions on 31 23,571 21,471 20,571
March
Non-current loans on 1 January 90,027 139,961 139,961
Change in non-current loans 781 -5,819 -49,934
--------------------------------------------------------------------------------
Non-current loans on 31 March 90,808 134,142 90,027
Capital loans on 1 January 920 1,840 1,840
Change in capital loans -920 -920 -920
--------------------------------------------------------------------------------
Capital loans on 31 March 0 920 920
Total borrowings on 31 March 114,379 156,533 111,518
CHANGES IN FIXED ASSETS
1-3/201 1-3/201 1-12/20
3 2 12
EUR 1,000 Tangibl Intangi Tangibl Intangi Tangibl Intangi
e ble e ble e ble
--------------------------------------------------------------------------------
Book value at the 118,019 12,529 139,886 13,333 139,886 13,333
beginning of the period
Investments 630 134 485 39 3,261 747
Decreases -18 -1,377 -1,385
Depreciation -4,278 -399 -4,522 -387 -23,603 -1,542
Translation differences 1,544 -163 -1,301 11 -140 -8
and other changes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Book value at the end of 115,898 12,101 133,171 12,995 118,019 12,529
the period
CONTINGENT LIABILITIES
EUR 1,000 1-3/2013 1-3/2012 12/2012
----------------------------------------------------------------------
For own debt
Secured loans 110,839 152,808 107,861
Nominal values of pledges
Real estate mortgages 27,044 23,158 27,045
Floating charges 198,339 208,254 193,988
Pledged subsidiary shares and loans 212,733 211,559 209,160
Other own commitments
Operating leases, real estates 26,527 28,454 27,177
Operating leases, machinery and equipment 3,086 3,244 2,705
Guarantee commitments 1,199 1,246 1,199
FINANCIAL ASSETS BY CATEGORY
a. Financial assets at fair value through profit or loss
b. Held-to-maturity investments
c. Loans and receivables
d. Available-for-sale financial assets
e. Derivatives held for hedge accounting
f. Book value
g. Fair value
Classes by instruments nature
EUR 1,000 a. b. c. d. e. f. g.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Available-for-sale financial 19 19 19
assets
Held-to-maturity investments 427 427 427
Trade receivables 56,370 56,370 56,370
Other receivables 137 6 55 198 198
Cash and cash equivalents 13,801 13,801 13,801
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total at 31 Mar 2013 137 427 70,177 19 55 70,815 70,815
Classes by instruments nature
EUR 1,000 a. b. c. d. e. f. g.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Available-for-sale financial 19 19 19
assets
Held-to-maturity investments 466 466 466
Trade receivables 45,328 45,328 45,328
Other receivables 60 590 650 650
Cash and cash equivalents 14,301 14,301 14,301
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total at 31 Dec 2012 60 466 60,220 19 60,763 60,763
Principles in estimating fair value for financial assets for 2013 are the same
as those used for preparing the financial statements for 2012.
FINANCIAL LIABILITIES
31 Mar 2013 31 Dec 2012
EUR 1,000 Book Fair Book Fair
value value value value
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Non-current
Loans from financial institutions 89,665 89,678 88,884 88,901
Pension loans 1,143 1,178 1,143 1,185
Total 90,808 90,856 90,027 90,085
-----------------------------------------------------------------------------
Current *)
Repayment of non-current liabilities
Loans from financial institutions 23,000 23,034 20,000 20,054
Pension loans 571 595 571 611
Capital loans 920 924
Derivatives not held for hedge accounting 19 19 62 62
Derivatives held for hedge accounting 1,409 1,409 1,822 1,822
Trade payables 47,937 47,937 46,381 46,381
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Total 72,936 72,993 69,756 69,854
Total 163,744 163,850 159,783 159,939
*) In the balance sheet under current liabilities.
Principles in estimating fair value for financial liabilities for 2013 are the
same as those used for preparing the financial statements for 2012.
FAIR VALUE MEASUREMENT HIERARCHY
EUR 1,000 Level 1 Level 2 Level 3
-------------------------------------------------------------
-------------------------------------------------------------
Assets measured at fair value
Assets held for sale 19
-------------------------------------------------------------
-------------------------------------------------------------
Total 19
Derivatives measured at fair value
Currency derivatives 118
Interest rate derivatives -1,231
Electricity derivatives -123
-------------------------------------------------------------
-------------------------------------------------------------
Total -1,236
Principles in estimating fair value for financial assets and their hierarchies
for 2013 are the same as those used for preparing the financial statements for
2012.
ANALYST AND PRESS CONFERENCE
Suominen's President and CEO Nina Kopola and CFO Tapio Engström will present
the financial result in Finnish at an analyst and press conference in Helsinki
today, on Friday, 19 April at 12.00 noon Finnish time. The conference will take
place at Event Arena Bank, Unioninkatu 20, Helsinki. The name of the meeting
room will be displayed on the board in the lobby. The presentation material
will be available after the analyst and press conference at
www.suominen.fi/financial_presentations.
Suominen will publish its Interim report for January-June 2013 on July 17, 2013.
Helsinki, 19 April, 2013
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Mrs Nina Kopola, President and CEO: +358 (0)10 214 300
Mr Tapio Engström, Senior Vice President and CFO, tel. +358 (0)10 214 300
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.suominen.fi
Suominen in brief
Suominen supplies its industrial and retail customers with nonwovens, wet wipes
and flexible packaging for use in consumer products worldwide. Suominen is the
global market leader in nonwovens for wipes. The company employs approximately
1,200 people in Europe and in the United States. Suominen's net sales in 2012
amounted to MEUR 454.9 and operating profit excluding non-recurring items was
MEUR 13.7. The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock
Exchange. Read more at www.suominen.fi.
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