Vaahto Group Plc Oyj - Interim Management statement

VAAHTO GROUP INTERIM MANAGEMENT STATEMENT 1 JANUARY – 14 NOVEMBER 2013

Helsinki, Finland, 2013-11-14 09:00 CET (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC
OYJ                    STOCK EXCHANGE RELEASE               14.11.2013    at
10.00 



VAAHTO GROUP INTERIM MANAGEMENT STATEMENT   1 JANUARY - 14 NOVEMBER 2013

Turnover from Vaahto Group's continuing operations for January 1, 2013 to
September 30, 2013 was 31.4 million euros (compared with 23.1 million euros for
the corresponding period in the previous fiscal year), with an operating profit
of 0.2 million euros (operating loss of 2.7 million euros). Turnover increased
36 % from the reference period and the operating result was positive. The
Group's order book for continuing operations on September 30, 2013 totaled 13.2
million euros (19.3 million euros). 



Vaahto Paper Technology

Turnover from Vaahto Paper Technology -division's continuing operations for
January 1, - September 30, 2013 was 7.7 million euros (9.2 million euros) with
an operating loss of 1.6 million euros (operating loss of 2.4 million euros).
Turnover decreased 16 % from the reference period's level, but the operating
result improved by 0.8 million euros, remaining still negative. The main reason
for the negative result of the Vaahto Paper Technology -division was the low
level of activity. The market situation for the service business has continued
moderate. 

Vaahto Group has initiated a program to intensify operations and improve the
profitability of the Paper Technology group. Both in Tampere and Kokkola units,
organizational changes are being made in order to achieve synergies, to respond
to the changes in the market and to find comprehensive solutions to customer
needs. 

In accordance with the preliminary contract signed on 16 January 2013, the sale
of Vaahto Paper Technology's Project -business unit and the spare-parts and
small-projects operations belonging to the company's Service unit to the German
firm Gebr. Bellmer GmbH Maschinenfabrik was completed on 15 April 2013. The
operating loss from discontinuing operations for January 1 - September 30, 2013
was 1.5 million euros (operating loss 1.2 million euros). 



Vaahto Process Technology

Vaahto Process Technology -division's turnover for January 1, 2013 - September
30, 2013 was 23.7 million euros (13.8 million euros), with an operating profit
of 1.8 million euros (operating loss 0.3 million euros). Turnover increased by
72 % from the reference period's level, operating result being positive and 7.6
% of the turnover. The reasons behind the success were constant order income
and the expected realization of the delivered projects. 

The market situation of Vaahto Process Technology -division has remained stable
and the demand has continued to be moderate. 



Authorization of the Board of Directors to decide on a share issue

The Annual General Meeting on April 10, 2013 authorized the Board to decide on
an issue of new shares in one or several lots. The number of new shares issued
would be no more than 2,000,000. The maximum number for the proposed
authorization concerning the shares corresponds to approximately 50 percent of
the total number of shares in the company. 

The authorization entitles the Board to decide on all the terms of the share
issue, including the right to deviate from the shareholders' subscription
privilege. 



The sale of Vaahto Group's Project Business

The arrangement announced by Vaahto Group on 16 January 2013 and 27 March 2013
regarding the sale of Vaahto Paper Technology group's projects business and the
spare part and small projects businesses belonging to its services business to
Gebr. Bellmer GmbH Maschinenfabrik of Germany was completed on 15 April 2013.
In connection with the transfer of the Business, personnel relating to the
Business, 56 employees in Hollola and 16 employees in Tampere transferred to
Bellmer. 



Outlook for the fiscal year of 2013

The development of the international economy shows no signs of improvement, and
the market situation of Vaahto Group's main customer industries remains
challenging. Vaahto Group's financing situation remains tight and involves
significant risks. The Board of Directors is currently in negotiations with the
credit institutions to improve liquidity and equity ratio. However, Vaahto
Group's operational result for the fiscal year 2013 is expected to increase
substantially from that of the previous financial period and to be clearly
positive for continuing operations. 



Lahti 14, November 2013

VAAHTO GROUP PLC OYJ

The Board of Directors



Vaahto Group is a globally operating high technology company serving process
industry in the fields of pulp and paper machinery and process machinery. 


         Information:
         Ari Viinikkala
         CEO, Vaahto Group Plc Oyj
         tel. +358 400 127664