2012-04-25 08:32:12 CEST
2012-04-25 08:33:21 CEST
REGULATED INFORMATION
Suominen Oyj - Interim report (Q1 and Q3)
SUOMINEN CORPORATION FINANCIAL STATEMENT 1.3.-31.3.2012
Tampere, 2012-04-25 08:32 CEST (GLOBE NEWSWIRE) -- Suominen Corporation
Stock exchange release 25 April at 9.30 a.m.
SUOMINEN CORPORATION FINANCIAL STATEMENT RELEASE
FINANCIAL STATEMENT RELEASE 1 JANUARY-31 MARCH 2012
SUOMINEN'S OPERATING PROFIT TURNS POSITIVE
KEY FIGURES 1-3/2012 1-3//2011 1-12/2011
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Net sales, EUR million 111.1 43.6 213.4
Operating profit, EUR million 3.2 -0.6 -4.8
Profit/loss for the period, EUR million -0.3 -1.7 -9.5
Earnings/share, EUR 0.00 -0.04 -0.11
Cash flow from operations/share, EUR -0.03 0.01 -0.03
Suominen's operating profit for the three months was positive. The quarter was
the first one to include the figures of the Home and Personal business area for
the whole reporting period. The acquisition doubled the reported net sales but
the comparable pro-forma sales declined compared to the first quarter of 2011.
The company has started a large-scale programme to exploit the potential
benefits of the integration. It is estimated that the company's full-year
reported net sales will grow and the result after taxes will improve over that
of 2011.
President & CEO Nina Kopola:
“We improved our result substantially during the first quarter of the year- we
achieved positive operating profit. The operating profit improved in both
Wiping and Flexible Packaging segments. Our net sales more than doubled as a
result of the acquisition of the Home and Personal division from Ahlstrom
Corporation.
Our first priority this year is to continuously improve profitability. This is
why we have started an extensive program in Nonwovens in order to attain all
the synergy benefits and cost benefits. The target is to achieve cost savings
of the order of about two percentage points on net sales.”
During this year we will furthermore focus on creating common ways of working
and a common corporate culture.
GROUP FINANCIAL RESULTS
Suominen Corporation generated net sales of EUR 111.1 million (43.6) in the
first quarter. Operating profit was EUR 3.2 million (-0.6). Profit before taxes
was EUR 0.5 million (-2.2) and profit after taxes EUR -0.3 million (-1.7).
Net sales more than doubled compared to the first quarter of 2011 because the
reference period did not include the figures for the acquired Home and Personal
business. The comparable sales change in net sales was -8,0%. The development
of demand was mixed: in Europe, net sales decreased, whereas in North America
it increased.
The operating profit was positive thanks to lower operating expenses. The
prices for oil-based raw materials increased during the first quarter, which
was most clearly reflected in the margins for flexible packaging. As regards
nonwovens, this negative impact was alleviated by changes in the sales mix.
Cash flow from operations was EUR -6.4 million (0.4). Working capital has
normalised to correspond with regular business operations, and when trade
receivables and trade payables have been accrued to the balance sheet has this
tied up financing EUR 12.9 million during the first quarter. Investments were
kept at a low level.
Integration of the acquired operations and efficiency-enhancement measures
Suominen continued to integrate the Home and Personal business acquired from
Ahlstrom Corporation into the Group. In addition to Suominen's previous
efficiency and cost-saving programmes, a comprehensive assessment was started
to realise the synergies and cost benefits related with the acquisition.
A clear profitability improvement is expected from the efficiency measures.
Suominen has, over several years, achieved savings through rationalisation and
efficiency measures, amounting to approximately 2% of net sales. The measures
started now also focus on improving the company's profitability and aim at a
similar level of cost benefits as previous measures, in relation to net sales.
The acquisition of the Brazilian unit belonging to the Home and Personal
business area was not finalised according to the previously estimated schedule,
i.e. in the first quarter. Final approvals from the competition and permitting
authorities are expected during the next few months. The actual operations of
the Brazilian plant have developed as planned and its net sales are growing.
Financing
The Group's interest-bearing net liabilities amounted to EUR 123.5 million
(58.0). Cash and bank receivables included the share of the Brazilian
transaction, which totaled EUR 25 million and is being held in an escrow
account. Repayments of non-current loans were EUR 2.7 million (2.0). Net
financial expenses were EUR 2.7 million (1.5) or 2.5 per cent (3.6) of net
sales. The increase in financial expenses was caused by the increased borrowing
and higher average interest rates on loans. A total of EUR 12.9 million was
tied up in working capital (EUR 0.8 million released). The net working capital
was increased during the first quarter because the working capital items were
not transferred at Home and Personal acquisition and they still kept rising in
the first months of the year. Trade receivables amounting to EUR 12.1 million
(10.5) were sold to the bank. The equity ratio was 32.8 per cent (25.6) and the
net gearing 112.4% (186.1). Cash flow from operations was EUR -6.4 million
(0.4) and EUR -0.03 per share (0.01).
Investments
The company's gross investments in production totalled EUR 0.5 million (1.3).
Planned depreciation amounted to EUR 4.9 million (2.1). Nonwovens accounted for
EUR 0.3 million (0.5), Codi Wipes for EUR 0.1 million (0.1) and Flexibles for
EUR 0.1 million (0.6) of total investments. The Group's investments were in
maintenance.
SEGMENT RESULTS
The net sales of Wiping totalled EUR 97.5 million (27.2) which is over three
times higher than during the first quarter of 2011. The segment's operating
profit was EUR 3.8 million (-0.3).
Net sales of Nonwovens totaled EUR 85.7 million (14.3). Nonwovens' comparable 3
month sales (pro forma) was on the same level as during the first quarter of
previous year. Delivery volumes decreased slightly. The application areas for
nonwoven materials are distributed as follows: baby wipes accounted for 50% of
sales, household wipes for about 20%, personal care wipes for about 15%, and
industrial wipes for 10%. Sales of nonwovens used for household wipes
increased, in other application areas sales decreased. Among the product
portfolio the position of household wipes and personal care strengthened
whereas baby wipes share declined.
Regionally the sales of North American plants increased compared to the pro
forma figures with the previous year while sales in Europe declined. The
development of Europe net sales was caused by stiffening competition and by the
interruption of one spunlace production line in Italy due to a fire damage.
Operating profit turned to profitable mainly due to decreased operational
costs. In operational costs there were savings compared to pro forma figures.
Integration of Home and Personal business to Suominen Nonwovens lowered the
operational costs compared to if the business units would have operated
separately.
The prices of oil-based raw materials increased during the first quarter. The
costs of Nonwovens were divided more balanced between different raw materials
and the consumer changes between these partly softened the price increase.
The work to integrate the business operations has continued intensively during
the first months of the year. Key positions have been filled, but it will still
take some time to stabilize the whole organization. As part of the Group's
cost-saving programme, efficiency measures will be implemented in Nonwovens and
the focus will be on utilizing the synergy benefits from the newly created
organisation.
Net sales of Codi Wipes, at EUR 13.1 million (14.0), which was 6% less than in
the previous year. Sales of hygiene packaging and moist toilet wipes remained
at the same level as in the previous year, so the sales decrease came from baby
wipes. Average sales prices were on par with the previous year. The unit's
operating expenses were on the same level as in the first three months of 2011.
Net sales of Flexibles totalled EUR 13.9 million (16.6), a decrease of 16% from
the previous year. Sales of hygiene packaging decreased about 25%, food
packaging sales decreased about 20% and retail packaging by about 10%.The price
competition in the field is still tight and the price actions made during 2011
caused some customer losses, which now are seen as sales decrease.
The operating loss of the business unit was EUR -0.1 million (-0.3). The prices
of plastic-based raw materials for flexible packaging increased sharply during
the first months of the year. It was impossible to compensate for these costs
through corresponding increases in sales prices during the period under review.
Operating expenses were lower than in the previous year thanks to the
rationalisation measures carried out in production in 2011. Flexibles'
production plant in Nastola, Finland, was sold during the period under review,
resulting in a sales profit of EUR 0.5 million.
GENERAL MEETINGS OF SHAREHOLDERS AND INFORMATION ON SHARES
GENERAL MEETING OF SHAREHOLDERS
The Annual General Meeting of shareholders of Suominen Corporation was held on
4 April, 2012. The Annual General Meeting decided that no dividend is paid for
the financial year 2011.
The Annual General Meeting adopted the financial statements and the
consolidated financial statements for the financial year 2011 and discharged
the members of the Board of Directors and the CEOs from liability.
The Annual General Meeting confirmed the number of members of the Board of
Directors to be five (5). The Meeting 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 in accordance
with the Articles of Association. The Board of Directors held an organizing
meeting after the Annual General Meeting and elected Jorma Eloranta as its
Chairman and Risto Anttonen as Deputy Chairman.
PricewaterhouseCoopers Oy, Authorized Public Accountants, was re-elected as
auditor of Suominen Corporation for the term expiring at the close of the next
Annual General Meeting.
SHARE CAPITAL AND SHARES
Share capital
The registered number of Suominen's issued shares totals 245,934,122 shares,
equaling to EUR 11,860,056.
Amendment of the articles of association
The Annual General Meeting approved the proposal of the Board of Directors on
the amendment of section 1 of the Articles of Association regarding the name of
the company so that the company's name in Finnish is Suominen Oyj. The Finnish
Trade Register has approved the Finnish company name change on 12 April 2012.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 31 March 2012 was 665,620 shares, accounting for 0.3% of the share
capital and votes. The trading price varied between EUR 0.39 and EUR 0.47. The
closing trading price was EUR 0.42, giving the company a market capitalization
of EUR 103,267,006 on 31 March 2012.
Own shares
On 1 January and 31 March 2012, the company Suominen Corporation held 60,298 of
its own shares, accounting for 0.0 % of the share capital and votes.
The Annual General Meeting 4 April approved the proposal of the Board of
Directors to authorize the Board of Directors to decide on repurchasing a
maximum of 3,000,000 company's own shares. The company's own shares shall be
repurchased otherwise than in proportion to the holdings of the shareholders by
using the non-restricted equity through public trading on NASDAQ OMX Helsinki
Ltd at the market price prevailing at the time of acquisition. The shares shall
be repurchased and paid in accordance with the rules of NASDAQ OMX Helsinki Ltd
and Euroclear Finland Ltd.
The shares shall be repurchased to be used in company's share-based incentive
programs, in order to disburse the remuneration of the members of the Board of
Directors, for use as consideration in acquisitions related to the company's
business, or to be held by the company, to be conveyed by other means or to be
cancelled.
The Board of Directors shall decide on other terms and conditions related to
the repurchase of the company's own shares. The repurchase authorization shall
be valid until 30 June 2013.
Stock options
Suominen's stock option plan 2009 is currently in effect. A total of 300,000
2009A stock options have been granted at the subscription price of EUR 0.95. A
total of 50,000 of these have been returned to the company, i.e. the option
right holders still have 250,000 shares. The subscription period for the 2009A
stock options is from 2 May 2011 to 30 October 2012. A total of 300,000 2009B
stock options have been granted at the subscription price of EUR 0.96. The
number of shares that can be subscribed under the stock option is 300,000. The
subscription period for the 2009B stock options is from 2 May 2012 to 30
October 2013.
As the registered number of Suominen's issued shares totals 245,934,122, the
number of shares may rise to a maximum of 246,484,122 after stock option
subscriptions.
Authorizing the Board of Directors to decide on the issuance of shares and
special rights entitling to shares
The Annual General Meeting approved the proposal of the Board of Directors to
authorize the Board of Directors 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. New shares may be issued and the company's own shares may be
conveyed to the company's shareholders in proportion to their current
shareholdings in the company or by waiving the shareholder's pre-emption right,
through a directed share issue if the company has a weighty financial reason to
do so, such as using the shares as consideration in possible acquisitions or
other arrangements related to the company's business, as financing for
investments or using the shares as part of the company's incentive program. The
new shares may also be issued in a Free Share Issue to the company itself.
New shares may be issued and the company's own shares held by the company may
be conveyed either against payment or for free. A directed share issue may be a
Free Share Issue only if there is an especially weighty financial reason both
for the company and with regard to the interests of all shareholders in the
company. A maximum of 50,000,000 new shares may be issued. A maximum of
3,100,000 of the company's own shares held by the company or its group company
may be conveyed. The number of shares to be issued to the company itself
together with the shares repurchased to the company on basis of the repurchase
authorization shall be at the maximum of 3,100,000 shares. The Board of
Directors may grant special rights referred to in Chapter 10, Section 1 of the
Finnish Companies Act, which carry the right to receive against payment new
shares or own shares held by the company. The right may also be granted to the
company's creditor in such a manner that the right is granted on condition that
the creditor's receivable is used to set off the subscription price
(‘Convertible Bond').
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 authorizations shall be valid until 30
June 2013.
Other authorizations granted to the Board of Directors
The Board of Directors has no other authorizations to issue shares or special
rights entitling to shares, option rights and/or convertible bonds.
BUSINESS RISKS AND UNCERTAINTIES
The estimate of net sales development of Suominen is partly based on the
forecasts and delivery plans received from the customers. Changes in in the
forecasts and in the plans caused by market situation or by customers' stock
changes might change Suominen's net sales forecast. Due to the deterioration in
the general economic situation and due to cautious consumer purchasing habits
the forecasts include uncertainty.
Suominen's customer base is comparatively concentrated, which adds to the
customer specific risks. Long-term contracts are being preferred in the case of
the largest customers. In practice the customer relationships are long-term and
for several years.
Suominen purchases significant amounts of oil- and pulp-based raw materials
annually. The raw materials are the biggest cost of operations. Rapid changes
in the global market prices of raw materials affect the company's
profitability. Extended interruptions 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 no competitors with a completely similar product offering but the
company has numerous regional, national and international competitors in its
different product groups. There is currently oversupply in several product
groups and additional production capacity is planned for Europe in, for
example, nonwovens. If Suominen is not able to compete with 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.
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. Substantial synergy benefits are expected
to be realized in the business acquisition. Postponed or failed efficiency
measures and synergy exploitation will have a negative impact on the company's
profit.
Group's damage risks are insured in order to guarantee continuity of
operations. In autumn 2011 a fire broke out at the Mozzate plant in Italy,
causing damage to one of the production lines. As Suominen has valid damage and
business interruption insurance, it is expected that the damage will be
compensated and the financial losses caused by the interruption of business
will be covered. The incident, however, bears greater risks than usual in terms
of restoring the situation to how it was before the fire.
Suominen's credit arrangements include covenants that the company must meet.
The financial covenants included in the credit agreement of EUR 150 million
concluded in October 2011 are the net-debt-to-EBITDA, and the company's
debt/equity ratio. At year-end 2012, Suominen's net debts cannot be greater
than 3.2 times the EBITDA, and the company's debt/equity ratio must be less
than 100%. These key figures in the Q1 2012 report were 3.9 and 99%. The credit
covenants were determined in in connection with the acquisition, which
increased the risks of banks. Now that the integrated operations are
stabilizing, Suominen and banks have agreed to continue negotiations to check
credit terms and to stabilize financing.
The sensitivity of Suominen's goodwill to changes in business conditions is
described in the notes to the financial statements 2011. Actual cash flows may
deviate from the forecasted future discounted cash flows, as the long economic
life-time 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.
General risks related to business operations are described in the Report of
Board of Directors in the Annual Report 2011.
OUTLOOK
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. Consumers' cautious purchasing behavior is expected to continue hand
in hand with muted economic growth. Supply exceeds demand for many of
Suominen's products, especially in Europe, and new production capacity is even
being built in some product groups.
The company estimates 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 demand for its
products will remain at the level of 2011. In Europe the demand will decrease
while in North America the sales will increase. In South America and in Eastern
Europe, the sales are estimated to grow. There will be no significant change in
the comparable sales volumes compared to the previous year.
Suominen's most substantial cost factor - the price development of oil- and
pulp-based raw material - was in decline at the end of 2011. During the first
quarter oil prices have risen steeply. Chiefly on the basis of the price trend
in oil raw materials, it is estimated that Suominen's raw material prices stay
on the level of the first quarter. Suominen will continue to streamline its
operating costs and the company has launched a separate project to ensure the
realization of synergy benefits related to the acquisition of the Home and
Personal business. The target is to achieve a couple of per cent cost benefits
comparable to net sales. Suominen will focus on developing its core business.
The Brazilian unit business transaction of the Home and Personal is expected to
be realized once approval from the Brazilian authorities has been obtained in
the second quarter of 2012.
Suominen's net sales will increase considerably as the Home and Personal
business's figures are included in the Group's net sales. It is estimated that
the result after taxes for the year will improve over that of 2011.
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY - 31 MARCH 2012
These financial statemetns have been prepared in compliance with IAS 34 Interim
Financial Reporting. Principles for preparing the interim report are the same
as those used for preparing the financial statements for 2011, and this interim
report should be read parallel to the financial statements for 2011. Changes to
published accounting standards and interpretations, together with the new
accounting standards that came into force on 1 January 2012, are presented in
the financial statements for 2011.
All calculations in this financial statement 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 these financial statements have not been audited.
BALANCE SHEET
EUR 1 000 3/2012 3/2011 12/2011
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Assets
Non-current assets
Goodwill 34 298 18 498 34 298
Intangible assets 12 808 773 13 146
Tangible non-current assets 133 171 51 876 139 886
Available-for-sale financial assets 206 212 212
Held-to-maturity investments 438 421 445
Deferred tax assets 2 766 1 753 2 756
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Non-current assets, total 183 687 73 533 190 743
Current assets
Inventories 44 241 25 218 45 972
Trade receivables 54 778 15 653 41 798
Other current receivables 18 061 3 617 17 480
Income tax receivables 1 470 252 1 205
Financial assets on escrow 25 000 25 000
Cash at bank and in hand 8 039 3 379 15 887
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Current assets, total 151 589 48 119 147 342
Assets, total 335 276 121 652 338 085
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 9 708 97 054
Fair value and other reserves -423 268 -484
Translation differences 740 540 -637
Other shareholders' equity -24 025 -15 880 -23 737
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Shareholders' equity, total 109 887 31 177 108 737
Liabilities
Non-current liabilities
Deferred tax liabilities 2 686 2 642 3 661
Provisions 280 280 280
Capital loans 2 000 920
Other non-current liabilities 1 218 1 234
Interest-bearing liabilities 134 142 38 034 139 961
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Non-current liabilities, total 138 326 42 956 146 056
Current liabilities
Interest-bearing liabilities 21 471 19 459 19 929
Capital loans 920 2 000 920
Income tax liabilities 2 081 200 724
Trade payables and other current liabilities 62 587 25 860 61 720
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Current liabilities, total 87 063 47 519 83 292
Liabilities, total 225 389 90 475 229 248
Shareholders' equity and liabilities, total 335 276 121 652 338 085
STATEMENT OF INCOME
EUR 1 000 1-3/2012 1-3/2011 1-12/2011
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Net sales 111 087 43 557 213 350
Cost of goods sold -102 083 -41 773 -205 507
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Gross profit 9 004 1 784 7 842
Other operating income 2 456 963 4 905
Sales and marketing expenses -1 859 -843 -4 050
Research and development -711 -502 -1 866
Administration expenses -5 515 -1 838 - 8 492
Other operating expenses -185 -176 -3 168
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Operating profit 3 190 -612 -4 829
Financial income and expenses -2 731 -1 547 -5 197
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------------------------------------------------------------
Profit before income taxes 459 -2 159 -10 026
Income taxes -750 424 494
------------------------------------------------------------
Profit/loss for the period -291 -1 735 -9 531
Earnings/share, EUR 0.00 -0.04 -0.11
STATEMENT OF COMPREHENSIVE INCOME
EUR 1 000 1-3/2012 1-3/2011 1-12/2011
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Profit/loss for the period -291 -1 735 -9 531
Other comprehensive income
Currency translation differences on foreign 1 095 34 -1 595
operations
Fair value changes of cash flow hedges 63 -537 -1 731
Other reclassifications -3 -9 -20
Income tax on other comprehensive income 280 131 906
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Other comprehensive income, total 1 435 -381 -2 440
Total comprehensive income for the period 1 144 -2 116 -11 972
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR 1 Share Share Invested Own Transl Fair Retaine Total
000 capita premium non-restrict shares ation value d
l account ed equity differ reserv earning
fund ences es s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 861 97 054 -43 -637 -440 -23 738 108 737
equit
y at
1 Jan.
2012
Profit -291 -291
/loss
for
the
perio
d
Other 1 377 61 -3 1 435
compr
ehensi
ve
incom
e
Share- 6 6
based
payme
nts
Total 11 860 24 681 97 054 -43 740 -379 -24 025 109 887
equit
y at
31
Mar.
2012
--------------------------------------------------------------------------------
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 -1 735 -1 735
oss for
the
period
Other 25 -397 -9 -381
compreh
ensive
income
Share-ba 7 7
sed
payment
s
Total 11 860 24 681 9 708 -163 540 431 -15 880 31 177
equity
at
31 Mar.
2011
--------------------------------------------------------------------------------
EUR 1 Share Share Invested Own Transl Fair Retaine Total
000 capita premium non-restrict shares ation value d
l account ed equity differ reserv earning
fund ences es s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 681 9 708 -163 515 828 -14 143 33 286
equit
y at
1 Jan.
2011
Profit -9 531 -9 531
/loss
for
the
perio
d
Other -1 152 -1 268 -20 -2 440
compr
ehensi
ve
incom
e
Share- 26 26
based
payme
nts
Share 87 346 87 346
issue
Convey 120 -69 51
ance
of
own
share
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11 860 24 681 97 054 -43 -637 -440 -23 738 108 737
equit
y at
31
Dec.
2011
CASH FLOW STATEMENT
EUR 1 000 1-3/2012 1-3/2011 1-12/2011
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Operations
Operating profit 3 190 -612 -4 829
Total adjustments 4 430 2 051 9 459
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Cash flow before change in working capital 7 621 1 439 4 630
Change in working capital -12 872 820 1 907
Financial items -1 085 -1 811 -9 833
Taxes paid -108 -1 397
Cash flow from operations -6 444 447 -2 898
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Investment payments
Investments in tangible and intangible assets -714 -633 -4 231
Investments in acquired business operations -139 810
Proceeds from disposal of fixed assets 1 867 102 1 628
and other proceeds
Cash flow from investing activities 1 153 -531 -142 414
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Financing
Non-current loans drawn 2 246 148 250
Repayments of non-current loans -1 731 -48 563
Repayments of capital loans -920 -2 000 -4 160
Repurchase and conveyance of own shares 51
Share issue 87 346
Cash flow from financing -2 651 246 182 924
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Change in cash and cash equivalents * -7 942 162 37 613
* Includes also the change in restricted financial assets.
KEY FIGURES 1-3/2012 1-3/2011 1-12/2011
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Net sales, change, % * 155.0 9.1 24.7
Gross profit, % ** 8.1 5.6 4.9
Operating profit, % ** 2.9 -1.4 -2.2
Financial income and expenses, % ** -2.5 -3.5 -2.4
Profit before income taxes, % ** 0.4 -4.9 -4.6
Profit for the period, % ** -0.3 -3.9 -4.4
Earnings/share, EUR 0.00 -0.04 -0.11
Equity/share, EUR 0.44 0.66 0.44
Cash flow from operations/share, EUR -0.03 0.01 -0.03
Return on equity (ROE), % -1.1 -21.5 -20.9
Return on invested capital (ROI), % 4.6 -2.5 -3.7
Equity ratio, % 32.8 25.6 32.2
Gearing, % 112.4 186.1 111.0
Gross investments, EUR 1 000 524 1 264 3 964
Depreciation, EUR 1 000 4 909 2 116 9 835
* Compared with the corresponding period of the previous year.
** As of net sales.
SEGMENT REPORTING
Wiping
EUR 1 000 1-3/2012 1-3/2011 Change % 1-12/2011
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Net sales
- Codi Wipes 13 118 13 985 -6.2 55 623
- Nonwovens 85 673 14 345 497.2 99 182
- eliminations -1 333 -1 131 17.9 -5 431
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Total 97 458 27 200 258.3 149 374
Operating profit 3 751 -298 -3 072
% of net sales 3.8 -1.1 -2.0
Assets 313 242 69 644 309 180
Liabilities 50 676 13 635 49 616
Net assets 262 567 56 010 259 564
Investments 372 630 1 910
Depreciation 3 818 1 324 6 524
Average personnel 761 342 418
Flexibles
EUR 1 000 1-3/2012 1-3/2011 Change % 1-12/2011
----------------------------------------------------------
Net sales 13 906 16 561 -16.0 64 848
Operating profit -92 -257 -69
% of net sales -0.7 -1.6 -0.1
Assets 42 804 46 741 44 372
Liabilities 10 239 12 853 11 175
Net assets 32 565 33 888 33 197
Investments 79 591 1 851
Depreciation 751 786 3 049
Average personnel 446 505 479
Non-allocated items
EUR 1 000 1-3/2012 1-3/2011 1-12/2011
------------------------------------------------
Net sales -278 -203 -873
Operating profit -468 -57 -1 688
Assets -20 770 5 266 -15 466
Liabilities 164 475 63 987 168 557
Investments 73 43 203
Depreciation 339 6 262
Average personnel 9 11 10
NET SALES BY MARKET AREA
EUR 1 000 1-3/2012 1-3/2011 1-12/2011
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Finland 6 053 6 703 27 547
Europe, other 48 889 32 904 141 622
North and South America 52 902 3 491 41 665
Other countries 3 243 459 2 515
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Net sales, total 111 087 43 557 213 350
QUARTERLY FIGURES II/2011 III/2011 IV/2011 1/2012 II/2011-
EUR 1 000 1/2012
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Net sales
Wiping
- Codi Wipes 13 586 14 936 13 116 13 118 54 756
- Nonwovens 14 215 12 189 58 433 85 673 170 510
- eliminations -1 911 -778 -1 611 -1 333 -5 633
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Total 25 890 26 347 69 937 97 458 219 633
Flexibles 17 019 16 210 15 059 13 906 62 194
Non-allocated items -294 -227 -149 -278 -947
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Net sales, total 42 616 42 330 84 847 111 087 280 879
Operating profit
Wiping 60 -1 674 -260 3 751 1 877
% of net sales 0.2 -6.4 -0.4 3.8 0.9
Flexibles 512 340 -69 -576 207
% of net sales 3.0 2.1 -0.5 -4.1 0.3
Non-allocated items -230 -72 672 -468 -99
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Operating profit before 342 -1 406 344 2 707 1 986
non-recurring costs
% of net sales 0.8 -3.3 -0.4 2.4 0.7
Non-recurring items -302 -492 -2 702 484 -3 012
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Operating profit, total 40 -1 899 -2 359 3 190 -1 027
% of net sales 0.1 -4.4 -2.8 2.9 0.4
Net financial expenses -1 457 -1 255 -938 -2 731 -6 380
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Profit before income -1 417 -3 153 -3 297 460 -7 407
taxes
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is recognized based on the estimated average income tax rate
by country.
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. The company has no investments in associated companies. Salaries
paid to the related parties amounted to EUR 286 thousand, share-based payments
EUR 6 thousand, unsecured loans EUR 100 thousand, and interest payments EUR 23
thousand.
Other related party- transaction 2012 2011
EUR 1000
Sales of goods and services 2 780
Purchases of goods and services 6 950
Trade and other receivablesTrade and other payables 2 003
4 898
Other related-party transactions are transactions with Ahlstrom.
MOVEMENTS IN BORROWINGS
EUR 1 000 1-3/2012 1-3/2011
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Total borrowings on 1 January 161 730 61 282
Current loans from financial institutions on 1 January 19 929 17 000
Change in current loans from financial institutions 1 542
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Current loans from financial institutions on 31 March 21 471 17 000
Commercial papers on 1 January 988
Change in commercial papers
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Commercial papers on 31 March 988
Non-current loans on 1 January 139 961 37 294
Change in non-current loans -5 819 2 211
--------------------------------------------------------------------------
Non-current loans on 31 March 134 142 39 505
Capital loans on 1 January 1 840 6 000
Change in capital loans -920 -2 000
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Capital loans on 31 March 920 4 000
Total borrowings on 31 March 156 533 61 493
CHANGES IN FIXED ASSETS
1-3/2012 1-3/2011 1-12/2011
EUR 1 000 Tangib Intangi Tangib Intangi Tangibl Intangi
le ble le ble e ble
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Carrying value at the 139 13 146 53 873 776 53 873 776
beginning of the period 886
Business combinations 89 124 12 584
Investments 485 39 1 149 48 3 678 220
Decreases -1 377 -1 040 -1 226
Depreciation -4 522 -387 -2 066 -50 -9 399 -436
Translation differences and -1 301 11 -40 -1 3 836 1
other changes
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Carrying value at the end of 133 12 808 51 876 773 139 886 13 146
the period 171
CONTINGENT LIABILITIES
EUR 1 000 1-3/2012 1-3/2011 12/2011
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For own debt
Secured loans 152 808 49 607 158 264
Nominal values of pledges
Real estate mortgages 23 158 24 045 22 914
Floating charges 208 254 60 069 211 515
Pledged subsidiary shares and loans 211 559 82 982 213 554
Other own commitments
Operating leases, real estates 28 454 9 886 29 532
Operating leases, machinery and equipment 3 244 6 072 3 482
Guarantee commitments 1 246 1 980 1 432
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
EUR 1 000 1-3/2012 1-3/2011 12/2011
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Currency derivatives
Nominal value 18 434 6 427 8 501
Fair value -24 -34 11
Interest rate derivatives
Nominal value 74 374 12 500 76 492
Fair value -169 -60 -216
Electricity derivatives
Nominal value 3 245 3 314 2 860
Fair value -542 647 -458
Helsinki, 25 April 2012
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Mrs Nina Kopola, President and CEO, tel. +358 (0)10 214 300
Mr. Arto Kiiskinen, Vice President and CFO, tel. +358 (0)10 214 300
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