SUOMINEN CORPORATION'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011
NET SALES GREW SOME, RESULT ON RED
Tampere, Finland, 2011-07-18 08:00 CEST (GLOBE NEWSWIRE) --
SUOMINEN CORPORATION INTERIM REPORT 18 JULY 2011 AT 9 A.M.
INTERIM REPORT 1 JANUARY – 30 JUNE 2011
NET SALES GREW SOME, RESULT ON RED
KEY FIGURES | 4-6/2011 | 4-6/2010 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Net sales, EUR million | 43.4 | 44.1 | 87.7 | 84.8 | 173.4 |
Operating profit, EUR million | 0.0 | 0.0 | -0.6 | -0.3 | -10.8 |
Profit/loss for the period, EUR million | -1.1 | -0.8 | -2.9 | -1.9 | -14.4 |
Earnings/share, EUR | -0.02 | -0.02 | -0.06 | -0.05 | -0.34 |
Cash flow from operations/share, EUR | 0.05 | -0.08 | 0.06 | -0.11 | -0.06 |
Suominen’s net sales for the first half of the year grew compared with the corresponding period in 2010. The second-quarter operating profit improved to zero level, but cumulatively, the operating profit was still negative. The rise in raw material costs slowed down compared to the first quarter of the year. The on-going cost-saving measures had a positive impact on the Group’s result. It is estimated that the result after taxes for the whole year will improve over 2010, but remain negative.
GROUP FINANCIAL RESULTS
Suominen Corporation generated net sales of EUR 43.4 million (44.1) in the second quarter. Operating profit was EUR 0.0 million (0.0), profit before taxes EUR -1.4 million (-1.0) and profit after taxes EUR ‑1.1 million (-0.8).
Net sales for the first half of the year totalled EUR 87.7 million (84.8). Operating profit was EUR ‑0.6 million (-0.3), profit before taxes EUR -3.6 million (-2.5) and profit after taxes EUR -2.9 million (‑1.9).
Net sales increased by 4 per cent compared to the first six months of the previous year. Average sales prices increased, thanks both to price rises and to raw material price clauses included in sales contracts.
The operating profit for the first half of the year showed a loss of EUR 0.6 million. The rise in raw material prices slowed down compared to the first three months of the year and to certain extent levelled off. The cost impact of rising raw material prices was therefore lower in the second quarter than in the first. During the first half of the year, shorter review periods were negotiated for some raw material clauses included in sales contracts. Operating costs were down from the corresponding period in 2010. The result included EUR 0.5 million in non-recurring costs due to rationalisation measures in Flexibles.
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.
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. Most of the machinery transfers from the Nastola plant have been completed, and the savings will begin to have their full impact beginning in the second half of the year. 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 six months amounted to some EUR 3 million.
Financing
Suominen refinanced its EUR 44 million syndicated credit facility by extending the average maturity of the financing. Under the amended credit terms, the repayment of EUR 15 million originally due at the end of June was prolonged to take place in three quarterly payments beginning in January 2012. The Group’s interest-bearing net liabilities totalled EUR 57.5 million (57.4), including capital loans of EUR 4.0 million (6.0). Repayments of non-current loans amounted to EUR 2.7 million. Net financial expenses were EUR 3.0 million (2.1), or 3.4 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 2.8 million was released in working capital (EUR 6.4 million tied up). Trade receivables amounting to EUR 13.2 million (10.9) were sold to the bank. The equity ratio was 24.8 per cent (32.0). When capital loans are included in shareholders’ equity, the equity ratio was 28.1 per cent (36.3) and the net gearing 158.2 per cent (102.0). Cash flow from operations was EUR 2.8 million (-4.1) and EUR 0.06 per share (-0.11).
Investments
The company’s gross investments in production totalled EUR 2.4 million (3.5). Planned depreciation amounted to EUR 4.0 million (4.8). Codi Wipes accounted for EUR 0.1 million (0.3), Nonwovens for EUR 0.7 million (1.2) and Flexibles for EUR 1.4 million (2.0) of total investments. The Group’s investments were in efficiency enhancement and maintenance.
SEGMENT RESULTS
The Wiping business area generated net sales of EUR 54.6 million (51.7) in the first six months, a 6 per cent increase over the corresponding period in 2010. The business area’s operating profit was EUR ‑0.2 million (-0.9).
Net sales of Codi Wipes, at EUR 27.6 million (28.7), declined by 4 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 co-determination procedure completed in January resulted in a reduction of personnel by 19 employees, which was the most significant factor behind the unit’s lower operating expenses.
Net sales of Nonwovens increased by 16 per cent to EUR 30.1 million (26.0). Growth was most pronounced in deliveries of nonwovens for wiping products, but sales of nonwovens for hygiene and health care products also increased. Regionally, most growth was seen in Europe, although sales to North America also increased. The rise in raw material prices slowed down, and their cost impact was lower in the second quarter than in the first.
Net sales of Flexibles during the first half of the year totalled EUR 33.6 million (33.5) and operating profit was EUR 0.0 million (0.7). Hygiene packaging sales increased, while sales of carrier bags and security and system packaging remained more or less on a level with 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 by implementing general price increases.
Rising prices of plastic-based raw materials, especially in the first months of the year, pushed the cost level up. Actual operating expenses decreased on the previous year. The machinery transfers from Nastola to the Polish and Tampere plants proceeded according to plan. Non-recurring costs amounting to EUR 0.5 million were recorded during the period.
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 June 2011 was 2,700,108 shares, equivalent to 5.7 per cent of shares included in the company’s share capital. The trading price varied between EUR 0.45 and EUR 0.64. The final trading price was EUR 0.50, giving the company a market capitalisation of EUR 23,667,358 on 30 June 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 will be valid for 18 months after the end of the General Meeting, that is 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 June 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
The Board of Directors is not currently authorised to issue shares, convertible bonds, or bonds with warrants.
BUSINESS RISKS AND UNCERTAINTIES
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 economic uncertainty and consumers’ cautious buying behaviour, the forecasts are subject to significant 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. 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.
Nonwovens and Flexibles buy oil- and pulp-based raw materials for more than EUR 55 million annually, and the rapid changes in global market prices of raw materials affect Suominen’s profitability.
Suominen does not have any competitors with a fully similar product offering. However, the company has numerous regional, national or international competitors in its different product groups. There is production oversupply 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. The Flexibles business area is currently closing one plant and transferring the production to other plants, which involves a risk of delays in the production schedule.
Suominen aims to improve its balance sheet by reducing debt with financial institutions. For this reason, the amended credit terms of the EUR 44 million syndicated credit facility affirms that Suominen aims to seek capital market financing during the latter part of 2011. The company is also striving to further improve its balance sheet by the divestment of non-key assets and business operations. If the company is not able to free up capital or obtain capital market financing, there is a risk that Suominen will not be able to meet the debt reduction requirement. Suominen’s credit arrangements include covenants that the company must meet. These require the Group to have financial buffers worth a minimum of EUR 1 million until the end of October and of EUR 2 million after that. The Group’s equity ratio must be 27 per cent, with capital loans included in equity. Should Suominen default on its obligations, the banks have the right to declare the loans due and payable and to renegotiate the terms.
The sensitivity of Suominen’s goodwill to changes in business conditions is described in the notes to the financial statements 2010. 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 relating to business operations are described in the Report of the Board of Directors in the Annual Report 2010.
OUTLOOK
The demand for Suominen’s products is evaluated 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, and no major change from the previous year is anticipated in net sales for 2011.
Prices for Suominen’s products are expected to increase thanks to the price increases implemented and the raw material clauses included in sales contracts. Measures to reduce operational costs are continuing, and the cost savings generated by the closure of the Nastola plant will begin to have an impact from the second half of the year.
It is estimated that the result after taxes for all of 2011 will improve over 2010, but remain negative.
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY–30 JUNE 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 | 6/2011 | 6/2010 | 12/2010 |
Assets | |||
Non-current assets | |||
Goodwill | 18 498 | 23 404 | 18 498 |
Intangible assets | 747 | 746 | 776 |
Tangible non-current assets | 51 186 | 55 376 | 53 873 |
Available-for-sale financial assets | 212 | 212 | 212 |
Held-to-maturity investments | 421 | 288 | 354 |
Deferred tax assets | 1 894 | 910 | 1 339 |
Non-current assets, total | 72 958 | 80 936 | 75 052 |
Current assets | |||
Inventories | 27 211 | 28 600 | 24 373 |
Trade receivables | 14 884 | 14 228 | 10 817 |
Other current receivables | 3 106 | 2 895 | 5 666 |
Income tax receivables | 371 | 926 | 200 |
Cash at bank and in hand | 3 807 | 10 927 | 3 253 |
Current assets, total | 49 379 | 57 576 | 44 309 |
Assets, total | 122 337 | 138 512 | 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 | 9 757 | 9 708 |
Fair value and other reserves | 72 | -228 | 665 |
Translation differences | 555 | -49 | 515 |
Other shareholders' equity | -17 073 | -1 677 | -14 143 |
Shareholders’ equity, total | 29 803 | 44 344 | 33 286 |
Liabilities | |||
Non-current liabilities | |||
Deferred tax liabilities | 2 524 | 3 069 | 2 930 |
Provisions | 280 | 280 | 280 |
Capital loans | 2 000 | 4 000 | 4 000 |
Interest-bearing liabilities | 39 870 | 45 325 | 35 823 |
Non-current liabilities, total | 44 674 | 52 674 | 43 033 |
Current liabilities | |||
Interest-bearing liabilities | 17 424 | 16 960 | 19 459 |
Capital loans | 2 000 | 2 000 | 2 000 |
Income tax liabilities | 231 | 341 | |
Trade payables and other current liabilities | 28 205 | 22 193 | 21 583 |
Current liabilities, total | 47 860 | 41 494 | 43 042 |
Liabilities, total | 92 534 | 94 168 | 86 075 |
Shareholders' equity and liabilities, total | 122 337 | 138 512 | 119 361 |
STATEMENT OF INCOME
EUR 1 000 | 4-6/2011 | 4-6/2010 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Net sales | 43 386 | 44 148 | 87 689 | 84 764 | 173 438 |
Cost of goods sold | -40 689 | -41 499 | -82 500 | -79 416 | -165 277 |
Gross profit | 2 697 | 2 649 | 5 189 | 5 348 | 8 161 |
Other operating income | 120 | 403 | 375 | 464 | 859 |
Sales and marketing expenses | -934 | -899 | -1 777 | -1 814 | -3 927 |
Research and development | -422 | -463 | -924 | -971 | -1 951 |
Administration expenses | -1 441 | -1 485 | -3 279 | -3 128 | -6 333 |
Other operating expenses | 20 | -222 | -156 | -241 | -2 564 |
Operating profit before impairment losses | 40 | -17 | -572 | -342 | -5 755 |
Impairment losses | -5 069 | ||||
Operating profit | 40 | -17 | -572 | -342 | -10 824 |
Financial income and expenses | -1 457 | -988 | -3 004 | -2 126 | -4 840 |
Profit before income taxes | -1 417 | -1 005 | -3 576 | -2 468 | -15 664 |
Income taxes | 289 | 245 | 713 | 587 | 1 302 |
Profit/loss for the period | -1 128 | -760 | -2 863 | -1 881 | -14 362 |
Earnings/share, EUR | -0.02 | -0.02 | -0.06 | -0.05 | -0.34 |
STATEMENT OF COMPREHENSIVE INCOME
EUR 1 000 | 4-6/2011 | 4-6/2010 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Profit/loss for the period | -1 128 | -760 | -2 863 | -1 881 | -14 362 |
Other comprehensive income | |||||
Total exchange differences on foreign operations | 20 | -804 | 54 | 92 | 854 |
Fair value changes of cash flow hedges | -425 | 318 | -962 | 332 | 1 661 |
Other reclassifications | -3 | -8 | -12 | -2 | -2 |
Income tax on other comprehensive income | 105 | 127 | 236 | -110 | -654 |
Other comprehensive income, total | -303 | -367 | -684 | 312 | 1 859 |
Total comprehensive income for the period | -1 431 | -1 127 | -3 547 | -1 569 | -12 503 |
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
EUR 1 000 | Share capital | Share premium account | Invested non-restricted equity fund | Own shares | Translation differences |
Fair value reserves |
Retained earnings | Total |
Total equity at 1 Jan. 2011 |
11 860 | 24 681 | 9 708 | -163 | 515 | 828 | -14 143 | 33 286 |
Profit/loss for the period | -2 863 | -2 863 | ||||||
Other comprehensive income | 40 | -712 | -12 | -684 | ||||
Share-based payments | 13 | |||||||
Share issue | ||||||||
Dividend | ||||||||
Repurchase of own shares | ||||||||
Conveyance of own shares | 120 | -69 | 51 | |||||
Total equity at 30 June 2011 |
11 860 | 24 681 | 9 708 | -43 | 555 | 116 | -17 074 | 29 803 |
EUR 1 000 | Share capital | Share premium account | Invested non-restricted equity fund | Own shares | Translation differences |
Fair value reserves |
Retained earnings | Total |
Total equity at 1 Jan. 2010 |
11 860 | 24 681 | -1 | -117 | -401 | 667 | 36 689 | |
Profit/loss for the period | -1 881 | -1 881 | ||||||
Other comprehensive income | 68 | 246 | -2 | 312 | ||||
Share-based payments | 15 | 15 | ||||||
Share issue | 9 757 | 9 757 | ||||||
Dividend | -474 | -474 | ||||||
Repurchase of own shares | -123 | -123 | ||||||
Conveyance of own shares | 51 | -1 | 50 | |||||
Total equity at 30 June 2010 |
11 860 | 24 681 | 9 757 | -73 | -49 | -155 | -1 676 | 44 345 |
EUR 1 000 | Share capital | Share premium account | Invested non-restricted equity fund | Own shares | Translation differences |
Fair value reserves |
Retained earnings | Total |
Total equity at 1 Jan. 2010 |
11 860 | 24 681 | -1 | -117 | -401 | 667 | 36 689 | |
Profit/loss for the period | -14 362 | -14 362 | ||||||
Other comprehensive income | 632 | 1 229 | -2 | 1 859 | ||||
Share-based payments | 29 | 29 | ||||||
Share issue | 9 708 | 9 708 | ||||||
Dividend | -474 | -474 | ||||||
Repurchase of own shares | -213 | -213 | ||||||
Conveyance of own shares | 51 | -1 | 50 | |||||
Total equity at 31 Dec. 2010 |
11 860 | 24 681 | 9 708 | -163 | 515 | 828 | -14 143 | 33 286 |
CASH FLOW STATEMENT
EUR 1 000 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Operations | |||
Operating profit | -572 | -342 | -10 824 |
Total adjustments | 3 868 | 4 761 | 14 076 |
Cash flow before change in working capital | 3 296 | 4 419 | 3 252 |
Change in working capital | 2 764 | -6 379 | -1 054 |
Financial items | -3 240 | -2 150 | -4 626 |
Taxes paid | -1 | -20 | -31 |
Cash flow from operations | 2 819 | -4 130 | -2 459 |
Investment payments | |||
Investments in tangible and intangible assets | -2 501 | -3 543 | -5 966 |
Proceeds from disposal of fixed assets and other proceeds |
190 | 349 | 751 |
Cash flow from investing activities | -2 311 | -3 194 | -5 215 |
Financing | |||
Non-current loans drawn | 2 765 | 13 000 | 8 000 |
Repayments of non-current loans | -737 | -5 033 | -23 731 |
Change in commercial papers | 1 488 | 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 | -73 | -163 |
Share issue | 9 757 | 9 708 | |
Cash flow from financing | 79 | 16 665 | 9 328 |
Change in cash and cash equivalents | 587 | 9 341 | 1 654 |
KEY FIGURES | 4-6/2011 | 4-6/2010 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Net sales, change, % * | -1.7 | 1.8 | 3.5 | -6.2 | -3.3 |
Gross profit, % ** | 6.2 | 6.0 | 5.9 | 6.3 | 4.7 |
Operating profit, % ** | 0.1 | 0.0 | -0.7 | -0.4 | -6.2 |
Financial income and expenses, % ** | -3.4 | -2.2 | -3.4 | -2.5 | -2.8 |
Profit before income taxes, % ** | -3.3 | -2.3 | -4.1 | -2.9 | -9.0 |
Profit for the period, % ** | -2.6 | -1.7 | -3.3 | -2.2 | -8.3 |
Earnings/share, EUR | -0.02 | -0.02 | -0.06 | -0.05 | -0.34 |
Equity/share, EUR *** | 0.63 | 0.94 | 0.70 | ||
Cash flow from operations/share, EUR | 0.06 | -0.11 | -0.06 | ||
Return on equity (ROE), % | -18.2 | -9.7 | -37.3 | ||
Return on invested capital (ROI), % | -1.3 | -0.6 | -10.6 | ||
Equity ratio, % | 24.8 | 32.0 | 27.9 | ||
Gearing, % | 192.9 | 129.3 | 174.0 | ||
Gross investments, EUR 1 000 | 2 377 | 3 458 | 6 190 | ||
Depreciation, EUR 1 000 | 4 013 | 4 829 | 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 | 1-6/2011 | 1-6/2010 | Change % | 1-12/2010 |
Net sales | ||||
- Codi Wipes | 27 571 | 28 728 | -4.0 | 56 371 |
- Nonwovens | 30 076 | 25 968 | 15.8 | 59 084 |
- eliminations | -3 042 | -3 000 | 1.4 | -7 296 |
Total | 54 606 | 51 696 | 5.6 | 108 159 |
Operating profit before impairment losses | -238 | -929 | -3 699 | |
% of net sales | -0.4 | -1.8 | -3.4 | |
Impairment losses | -4 906 | |||
Operating profit | -238 | -8 605 | ||
Assets | 73 898 | 79 919 | 67 650 | |
Liabilities | 17 809 | 12 026 | 11 620 | |
Net assets | 56 089 | 67 893 | 56 030 | |
Investments | 886 | 1 440 | 2 278 | |
Depreciation | 2 440 | 3 256 | 6 117 | |
Impairment losses | 4 906 | |||
Average personnel | 341 | 377 | 369 |
Flexibles
EUR 1 000 | 1-6/2011 | 1-6/2010 | Change % | 1-12/2010 |
Net sales | 33 580 | 33 502 | 0.2 | 66 140 |
Operating profit | -47 | 738 | -1 941 | |
% of net sales | -0.1 | 2.2 | -2.9 | |
Assets | 46 496 | 47 872 | 45 950 | |
Liabilities | 11 429 | 12 549 | 10 048 | |
Net assets | 35 067 | 35 323 | 35 902 | |
Investments | 1 417 | 2 011 | 3 788 | |
Depreciation | 1 556 | 1 561 | 3 181 | |
Impairment losses | 163 | |||
Average personnel | 494 | 529 | 521 |
Non-allocated items
EUR 1 000 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Net sales | -496 | -434 | -861 |
Operating profit | -287 | -150 | -115 |
Assets | 1 943 | 10 721 | 5 760 |
Liabilities | 63 296 | 69 592 | 64 406 |
Investments | 73 | 7 | 124 |
Depreciation | 18 | 12 | 24 |
Average personnel | 11 | 11 | 11 |
NET SALES BY MARKET AREA
EUR 1 000 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
Finland | 13 660 | 13 393 | 27 053 |
Scandinavia | 8 085 | 7 817 | 14 821 |
The Netherlands | 4 175 | 4 262 | 9 915 |
Europe, other | 54 806 | 53 705 | 104 651 |
Other countries | 6 963 | 5 587 | 16 998 |
Net sales, total | 87 689 | 84 764 | 173 438 |
QUARTERLY FIGURES
EUR 1 000 | III/2010 | IV/2010 | I/2011 | II/2011 | III/2010-I/2011 |
Net sales | |||||
Wiping | |||||
- Codi Wipes | 14 210 | 13 433 | 13 985 | 13 586 | 55 214 |
- Nonwovens | 14 958 | 18 159 | 15 091 | 14 985 | 63 193 |
- eliminations | -1 734 | -2 562 | -1 131 | -1 911 | -7 337 |
Total | 27 434 | 29 029 | 27 946 | 26 660 | 111 069 |
Flexibles | 16 125 | 16 513 | 16 561 | 17 019 | 66 218 |
Non-allocated items | -200 | -227 | -203 | -294 | -924 |
Net sales, total | 43 359 | 45 315 | 44 303 | 43 386 | 176 363 |
Operating profit |
|||||
Wiping | -1 136 | -623 | -298 | 60 | -1 998 |
% of net sales | -4.1 | -2.1 | -1.1 | 0.2 | -1.8 |
Flexibles | -720 | -1 017 | -62 | 512 | -1 287 |
% of net sales | -4.5 | -6.2 | -0.4 | 3.0 | -1.9 |
Non-allocated items | 33 | 3 | -57 | -230 | -252 |
Operating profit before non-recurring costs | -1 824 | -1 637 | -417 | 342 | -3 536 |
% of net sales | -4.2 | -3.6 | -0.9 | 0.8 | -2.0 |
Non-recurring costs | -7 021 | -195 | -302 | -7 518 | |
Operating profit, total | -1 824 | -8 658 | -612 | 40 | -11 054 |
% of net sales | -4.2 | -19.1 | -1.4 | 0.1 | -6.3 |
Net financial expenses | -1 028 | -1 686 | -1 547 | -1 457 | -5 718 |
Profit before income taxes | -2 852 | -10 344 | -2 159 | -1 417 | -16 771 |
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 567,000, share-based payments EUR 13,000, unsecured loans EUR 440,000, and interest payments EUR 76,000.
MOVEMENTS IN BORROWINGS
EUR 1 000 | 1-6/2011 | 1-6/2010 |
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 | -564 | |
Current loans from financial institutions on 30 June | 16 436 | |
Commercial papers on 1 January | 988 | |
Change in commercial papers | 1 488 | |
Commercial papers on 30 June | 988 | 1 488 |
Non-current loans on 1 January | 37 294 | 52 861 |
Change in non-current loans | 2 576 | 7 936 |
Non-current loans on 30 June | 39 870 | 60 797 |
Capital loans on 1 January | 6 000 | 8 000 |
Change in capital loans | -2 000 | -2 000 |
Capital loans on 30 June | 4 000 | 6 000 |
Total borrowings on 30 June | 61 294 | 68 285 |
CHANGES IN FIXED ASSETS
1-6/2011 | 1-6/2010 | 1-12/2010 | ||||
EUR 1 000 | Tangible | Intangible | Tangible | Intangible | Tangible | Intangible |
Book value at the beginning of the period | 53 873 | 776 | 57 044 | 795 | 57 044 | 795 |
Investments | 2 232 | 78 | 3 345 | 50 | 5 884 | 177 |
Decreases | -967 | -160 | -466 | -1 | ||
Depreciation | -3 907 | -106 | -4 732 | -97 | -9 127 | -195 |
Translation differences and other changes | -45 | -121 | -2 | 538 | ||
Book value at the end of the period | 51 186 | 747 | 55 376 | 746 | 53 873 | 776 |
CONTINGENT LIABILITIES
EUR 1 000 | 6/2011 | 6/2010 | 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 | 11 902 | 9 371 | 9 465 |
Operating leases, machinery and equipment | 5 462 | 7 350 | 7 577 |
Guarantee commitments | 1 894 | 1 724 | 1 995 |
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
EUR 1 000 | 6/2011 | 6/2010 | 12/2010 |
Currency derivatives | |||
Nominal value | 6 464 | 6 351 | 5 172 |
Fair value | -17 | 111 | -138 |
Interest rate derivatives | |||
Nominal value | 9 333 | 25 833 | 13 833 |
Fair value | -14 | -322 | -143 |
Electricity derivatives | |||
Nominal value | 3 596 | 2 337 | 2 638 |
Fair value | 127 | 98 | 1 249 |
Helsinki, 18 July 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
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
Latest news
![](/globalassets/media/brand-images/suominen-brand-image-stock-2.jpg?preset=mobile-wide)
Thomas Olsen to leave Suominen, Markku Koivisto appointed interim EVP, Americas
![](/globalassets/media/brand-images/suominen-brand-photo-web-102.jpg?preset=mobile-wide)
Suominen invests in increasing capacity in sustainable products by establishing a new production line at its Alicante site
![](/globalassets/media/brand-images/suominen-brand-photo-web-222.jpg?preset=mobile-wide)