SUOMINEN CORPORATION INTERIM REPORT 1 JANUARY - 30 JUNE 2012

Tampere, Finland, 2012-07-17 08:30 CEST (GLOBE NEWSWIRE) -- Suominen Corporation                    Stock exchange release 17 July, 2012 at 9.30 am.

SUOMINEN CORPORATION
INTERIM REPORT RELEASE 1 JANUARY–30 JUNE 2012

SUOMINEN’S PERFORMANCE REMAINED STABLE DURING THE SECOND QUARTER; THE CASH FLOW FROM OPERATIONS TURNED POSITIVE
 

KEY FIGURES 4-6/2012 4-6/2011 1-6/2012 1-6/2011 1-12/2011
           
Net sales, EUR million 113.1 42.6 224.2 86.2 213.4
Operating profit before non-recurring
items, EUR million
 
2.4
 
0.3
 
5.1
 
-0.1
 
-1.1
Operating profit, EUR million -0.3 0.0 2.9 -0.6 -4.8
Profit/loss for the period, EUR million -2.6 -1.1 -2.9 -2.9 -9.5
Earnings/share, EUR -0.01 -0.02 -0.01 -0.06 -0.11
Cash flow from operations/share, EUR 0.05 0.05 0.02 0.06 -0.03


President & CEO Nina Kopola:

During second quarter our development continued in the same direction as in the first quarter. The operating profit before non-recurring items, EUR 2.4 million was close to the number from first quarter EUR 2.7 million. Our result before non-recurring items improved clearly also compared to pro forma numbers  from last year.

In June we concluded the codetermination negotiations at Suominen Nonwovens Ltd, which will lead to a reduction of maximum 76 positions. We will concentrate on spunlace production in the Nakkila plant, which means the thermobond nonwovens will cease. By closing down one spunlace line we will be more effective and safeguard our competiveness also in the future.

We are well underway in implementing our savings project and we are assured we can reach our target of about 2 percentage points on net sales.

Our renewed company is coming together and the new Suominen is taking shape, not only financially but also through the work we are doing to establish common operating systems and a common corporate culture. Considering Nonwovens already today represents more than 75% of our total business we will direct more resources to the business and enforce it further.


GROUP FINANCIAL RESULTS

Suominen Corporation generated net sales of EUR 113.1 million (42.6) in the second quarter. Operating profit before non-recurring items was EUR 2.4 million (0.3) and after them EUR -0.3 million (0.0). Profit before taxes was EUR -2.8 million (-1.4) and profit after taxes EUR -2.6 million (-1.1).

Net sales for the first half of the year totalled EUR 224.2 million (86.2). Operating profit before non-recurring items was EUR 5.1 million (-0.6) and after them EUR 2.9 million (-0.6), profit before taxes EUR -2.3 million (-3.6) and profit after taxes EUR -2.9 million (-2.9).

Comparable net sales decreased by 10% on the previous year compared to the EUR 249.6 million in pro forma net sales. The decrease in net sales was affected by a decline in volumes and reduced sales prices in Europe. The most significant factor affecting the decrease in European volumes was the burning down of the spunlace line in Italy in the autumn of last year; the line was not restarted until May. Regionally, demand was stronger in the US markets than in Europe. The strengthening of the dollar against the euro increased the USA share of net sales in the pro forma comparison.

Operating profit before non-recurring items, EUR 5.1 million (-0.6), improved thanks to the Wiping business area’s result turning positive. Non-recurring costs equalled EUR 2.2 million. The previous year’s pro forma operating profit was EUR 2.1 million, so, the result improved clearly in comparison to that as well. The prices of plastic-based raw materials affecting raw material costs peaked at the start of the second quarter and then turned into a slight decline. Operating expenses were slightly lower than the previous year’s comparable expenses.
A decision was made to cut the production capacity of Suominen Nonwovens Ltd’s production facility in Nakkila, which will lead to the lay-offs of a maximum of 76 employees. Due to this decision, Suominen wrote down the value of its fixed assets by EUR 2.7 million. The cost does not affect cash flow.


Cash flow from operations in the second quarter was EUR 11.9 million positive when it was EUR 6.4 million negative in the first quarter. For the whole period cash flow from operations was EUR 5.4 million (2.8). Working capital EUR 46.6 million has reduced slightly since March, but because trade receivables and trade payables have been accrued to the balance sheet after the acquisition of Home and Personal business financing EUR 3.4 million has been tied up during 2012. Investments were kept at a low level.

Integration of the acquired operations and efficiency-enhancement measures
The integration of the acquired Home and Personal business’s operations is defined in connection with the Summit project, which covers the generation of synergies in sales, procurement, product line optimisations and logistical solutions. Efficiency measures are aimed at creating cost savings, representing about two per cent of net sales.

The acquisition of the Brazilian unit belonging to the Home and Personal business has not been possible because the unit has not obtained all of the required permits. The actual operations of the Brazilian plant have developed as planned and its net sales are growing. Plans are to complete the acquisition and its financing during the third quarter of the year.


Financing
The Group’s interest-bearing net liabilities amounted to EUR 117.7 million (57.5). Cash and bank receivables included EUR 25 million in escrow account. Repayments of non-current loans were EUR 2.5 million (2.7). Net financial expenses were EUR 5.2 million (3.0) or 2.3% (3.5) 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 3.4 million was tied up in working capital (EUR 2.8 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 review period. Trade receivables amounting to EUR 12.4 million (13.2) were sold to the bank. The equity ratio was 31.5% (24.8) and the net gearing 109.8% (192.9). Cash flow from operations was EUR 5.4 million (2.8) and EUR 0.02  per share (0.06).

Investments
The company’s gross investments in production totalled EUR 1.2 million (
2.4). Planned depreciation amounted to EUR 9.8 million (4.0). Nonwovens accounted for EUR 0.6 million (0.7), Codi Wipes for EUR 0.3 million (0.1) and Flexibles for EUR 0.2 million (1.4) of total investments. The Group’s investments were in maintenance.

SEGMENT RESULTS

The net sales of Wiping totalled EUR 198.0 million (
53.1) which is almost four times higher than during the first half of 2011. The segment’s operating profit was EUR 4.9 million (-0.2).

Net sales of Nonwovens totaled EUR 175.1 million (28.6). Nonwovens’ comparable 6-month-sales (pro forma) was EUR 192.0 million in 2011 which means to a decrease of 10%. Delivery volumes decreased slightly. The application areas for nonwoven materials are distributed as follows: baby wipes accounted for 47% of sales, household wipes for about  19%, personal care wipes for  about 16%, and industrial wipes for 10%. Sales of nonwovens used for personal care and household wipes increased, in other application areas sales decreased.

The sales of the North American plants in dollars equalled the pro forma figures for the previous year. Consumer demand in wet wipes consumption areas on the American markets was clearly stronger than in product areas typical for Europe. European net sales were also affected by the tightening competition created by the increased production capacity and the interruption of a production line in Italy due to damage from a fire. The production line came back online in May.

Savings were achieved in operating costs compared to pro forma figures due to previously implemented synergy savings. The prices of oil-based raw materials began to decline slightly in the second quarter. No significant changes took place in the prices of other raw materials.

The codetermination negotiations at Suominen Nonwovens Ltd’s Nakkila plant were completed during June. The plant’s operations will be renewed with the objective of turning a negative result into a positive one. A decision was made to close down the plant’s thermobond production and one spunlace line. In order to improve the efficiency of operations, the number of staff will be reduced by a maximum of 76 employees. A write-down of EUR 2.7 million was recorded due to the closing down of production, but does not affect the cash flow.


Other efficiency measures of the unit are based on the group Summit programme.

Net sales of Codi Wipes stood at EUR 25.4 million (27.6), which was 8% 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 six months of 2011.

The operating profit of Wiping business was EUR 7.6 million excluding write-down mentioned earlier. The result improved thanks to the business acquisition. Operating profit improved also compared to pro forma figure EUR 2.4 million of previous year as a result of lower operating costs.


Net sales of Flexibles totalled EUR 26.7 million (33.6), a decrease of 21% from the previous year. Sales of hygiene packaging decreased about one third due to customer losses.  Food and retail packaging sales decreased as well but security and technical packaging sales increased. Flexibles has managed to get new business  to compensate the customer losses, but sales on this will  accumulate to a full amount only gradually.

The operating loss of the business unit was EUR -0.9 million (-0.0).
The prices of plastic-based raw materials for flexible packaging had a slight downturn after the sharp increase during the first months of the year. The increased raw material costs can be transferred to sales prices with a delay and the price escalation led into slightly improved sales margins during the second quarter. The margin of the first half of the year was however lower than during the comparison period.  Operating expenses were lower than in the previous year thanks to the rationalisation measures carried out in production in 2011.

INFORMATION ON SHARES AND SHARE   CAPITAL  

Share capital
The registered number of Suominen’s issued shares totals 245,934,122 shares, equaling to EUR 11,860,056.

Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX
Helsinki from 1 January to 30 June 2012 was 1,172,774 shares, accounting for 0.5% of the share capital and votes. The trading price varied between EUR 0.33 and EUR 0.47. The closing trading price was EUR 0.36 giving the company a market capitalization of EUR 88,514,577 on 30 June 2012.

Own shares
On 1 January and 30 June 2012, the company Suominen Corporation
held 60,298 of its own shares, accounting for 0.0% of the share capital and votes.

Stock options
Suominen’s option right holders of the plan 2009A have 250,000 stock options. The subscription period for the 2009A stock options is from 2 May 2011 to 30 October 2012. A total of 300,000 2009 B stock options have been granted. 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 repurchasing a maximum of 3,000,000 company’s own shares. The Board of Directors is also 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 authorizations shall be valid until 30 June 2013.

BUSINESS RISKS AND UNCERTAINTIES


Suominen concluded an agreement with Ahlstrom at the end of 2011 for the acquisition of its Home and Personal business’s Brazilian operations. Some of the permits required for completing the acquisition are still waiting for processing by the authorities. Issues relating to the unit’s acquisition and financing are being discussed with Ahlstrom, with the aim of concluding the acquisition by the third quarter of the year. This involves an element of uncertainty.

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 numerous regional, national and international competitors in its different product groups. There is currently oversupply in several product
groups especially in Europe. 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, sourcing and logistics solutions, to reduce general costs and to pass on the costs to sale prices more efficiently than in the past.
The impact of the efficiency measures is most visible when production volumes increase. Substantial synergy benefits are expected to be realized in the Home and Personal 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 compensation of the interruption loss has not been confirmed yet which means that some risk is included in the compensation level.

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 Q2 2012 report were 5.2 and 109.8% in line with the current agreements. Suominen has started negotiations with its financers to adjust the covenants and financial needs to reflect the current situation and taking into consideration also the delay in the acquisition of the Brazilian business and its financing. The negotiations are proceeding positively but exact terms and conditions are still to be finalized after the publication of this interim report.

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. The fair value based on value in use of assets or businesses in total or in part do 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 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 North and South America as well as in Eastern Europe the sales are estimated to grow whereas in Western Europe the sales are anticipated to decrease.


The rise in prices of the  raw materialias used by Suominen reached their peak in the second quarter and turned thereafter to a decline. In the coming months this decline is anticipated to continue slowly. Suominen will continue to streamline its operating costs and realize the 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 target is to realize the Brazilian unit business transaction of the Home and Personal once approval from the Brazilian authorities has been obtained, which is expected to happen in the third 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 – 30 JUNE 2012

These financial statements 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 6/2012 6/2011 12/2011
       
Assets      
       
Non-current assets      
Goodwill 35 222 18 498 34 298
Intangible assets 12 636 747 13 146
Tangible non-current assets 130 345 51 186 139 886
Available-for-sale financial assets 19 212 212
Held-to-maturity investments 453 421 445
Deferred tax assets 3 399 1 894 2 756
Non-current assets, total 182 074 72 958 190 743
       
Current assets      
Inventories 43 981 27 211 45 972
Trade receivables 54 541 14 884 41 798
Other current receivables 14 009 3 106 17 480
Income tax receivables 2 413 3 71 1 205
Financial assets on escrow 25 000   25 000
Cash at bank and in hand 18 352 3 807 15 887
Current assets, total 158 296 49 379 147 342
       
Assets, total 340 370 122 337 338 085
       
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 -449 72 -484
Translation differences 681 555 -637
Other shareholders’ equity -26 597 -17 073 -23 737
Shareholders’ equity, total 107 230 29 803 108 737
       
Liabilities      
Non-current liabilities      
Deferred tax liabilities 1 913 2 524 3 661
Provisions 280 280 280
Capital loans   2 000 920
Other non-current liabilities 1 362   1 234
Interest-bearing liabilities 138 854 39 870 139 961
Non-current liabilities, total 142 409 44 674 146 056
       
Current liabilities      
Interest-bearing liabilities 21 271 17 424 19 929
Capital loans 920 2 000 920
Income tax liabilities 2 566 231 724
Trade payables and other current liabilities 65 974 28 205 61 719
Current liabilities, total 90 731 47 860 83 292
       
Liabilities, total 233 140 92 534 229348
       
Shareholders' equity and liabilities, total 340 370 122 337 338 085


STATEMENT OF INCOME
 

EUR 1 000 4-6/2012 4-6/2011 1-6/2012 1-6/2011 1-12/2011
           
Net sales 113 082 42 616 224 169 86 173 213 350
Cost of goods sold -107 788 -40 650 -209 871 -82 423 -205 507
Gross profit 5 294 1 966 14 298 3 750 7 843
Other operating income 2 524 851 4 980 1 814 4 905
Sales and marketing expenses -1 806 -934 -3 665 -1 777 -4 050
Research and development -633 -422 -1 344 -924 -1 866
Administration expenses -5 630 -1 441 -11 145 -3 279 -8 492
Other operating expenses -55 20 -240 -156 -3 168
Operating profit -306 40 2 884 -572 -4 829
Financial income and expenses -2 494 -1 457 -5 225 -3 004 -5 197
Profit before income taxes -2 800 -1 417 -2 341 -3 576 -10 026
Income taxes 155 289 -595 713 494
Profit/loss for the period -2 645 -1 128 -2 936 -2 863 -9 531
           
Earnings/share, EUR -0.01 -0.02 -0.01 -0.06 -0.11


STATEMENT OF COMPREHENSIVE INCOME
 

EUR 1 000 4-6/2012 4-6/2011 1-6/2012 1-6/2011 1-12/2011
           
Profit/loss for the period -2 645 -1 128 -2 936 -2 863 -9 531
           
Other comprehensive income          
Currency translation differences on foreign operations 685 20  
410
 
54
-1 594
Fair value changes of cash flow hedges -16 -425 47 -962 -1 731
Other reclassifications 72 -3 69 -12 -20
Income tax on other comprehensive income 616 105 896 236 906
Other comprehensive income, total -13 -303 1 422 -684 -2 440
           
Total comprehensive income for the period  
-2 658
 
-1 431
 
-1 514
 
-3 547
 
-11 972


STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

a. Share capital

b. Share premium account

c. Invested non-restricted equity fund

d. Own shares

e. Translation differences

f. Fair value reserves

g. Retained earnings

h. Total
 


EUR 1 000  
a. b. c. d. e. f. g. h.
                 
Total equity on 1 Jan. 2012 11 860 24 681 97 054 -43 -637 -441 -23 737 108 737
                 
Profit/loss for the period             -2 936 -2 936
Other comprehensive income         1 318 35 69 1 422
Share-based payments             7 7
Total equity 30 Jun. 2012 11 860 24 681 97 054 -43 681 -405 -26 597 107 230



EUR 1 000  
a. b. c. d. e. f. g. h.
                 
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 13
Conveyance of own shares       120     -69 51
Total equity at 30 Jun. 2011 11 860 24 681 9 708 -43 555 116 -17 074 29 803
EUR 1 000   a. b. c. d. e. f. g. h.
                 
Total equity at 1 Jan. 2011  11 860 24 681 9 708 -163 515 828 -14 143 33 286
                 
Profit/loss for the period             -9 531 -9 531
Other comprehensive income         -1 152 -1 268 -20 -2 440
Share-based payments             26 26
Share issue     87 346         87 346
Conveyance of own shares       120     -69 51
Total equity at 31 Dec. 2011 11 860 24 681 97 054 -43 -637 -440 -23 738 108 737


CASH FLOW STATEMENT
 


EUR 1 000
1-6/2012 1-6/2011 1-12/2011
       
Operations      
Operating profit 2 884 -572 -4 829
Total adjustments 12 066 3 868 9 459
Cash flow before change in working capital 14 951 3 296 4 630
Change in working capital -3 399 2 764 1 907
Financial items -4 679 -3 240 -9 833
Taxes paid -1 432 -1 397
Cash flow from operations 5 441 2 819 -2 898
       
Investment payments      
Investments in tangible and intangible assets -1 426 -2 501 -4 231
Investments in acquired business operations     -139 810
Proceeds from disposal of fixed assets
and other proceeds
1 868  
190
 
1 628
Cash flow from investing activities 441 -2 311 -142 414
       
Financing      
Non-current loans drawn   2 765 148 250
Repayments of non-current loans -2 467 -737 -48 563
Repayments of capital loans -920 -2 000 -4 160
Repurchase and conveyance of own shares   51 51
Share issue     87 346
Cash flow from financing -3 387 79 182 924
       
Change in cash and cash equivalents * 2 495 587 37 613

 

*     Includes also the change in restricted financial assets.

 

KEY FIGURES 4-6/2012 4-6/2011 1-6/2012 1-6/2011 1-12/2011
           
Net sales, change, % * 165.4 -3.5 160.1 1.7 23.0
Gross profit, % ** 4.7 4.6 6.4 4.4 3.7
Operating profit, % ** -0.3 0.1 1.3 -0.7 -2.3
Financial income and expenses, % ** -2.2 -3.4 -2.3 -3.5 -2.4
Profit before income taxes, %** -2.5 -3.3 -1.0 -4.1 -4.7
Profit for the period, % ** -2.3 -2.6 -1.3 -3.3 -4.5
Earnings/share, EUR -0.01 -0.02 -0.01 -0.06 -0.11
           
Equity/share, EUR     0.44 0.63 0.44
Cash flow from operations/share, EUR     0.02 0.06 -0.03
Return on equity (ROE), %     -5.4 -18.2 -20.9
Return on invested capital (ROI), %     2.1 -1.3 -3.7
Equity ratio, %     31.5 24.8 32.2
Gearing, %     109.8 192.9 111.0
           
Gross investments, EUR 1 000     1 206 2 377 3 964
Depreciation, EUR 1 000     9 844 4 013 9 835
Impairment losses, EUR 1 000     2 700    


*     Compared with the corresponding period of the previous year.
**   As of net sales.

SEGMENT REPORTING
 
Wiping

 

EUR 1 000 1-6/2012 1-6/2011 Change%   1-12/2011
         
Net sales        
- Codi Wipes 25 396 27 571 -7.9 55 623
- Nonwovens 175 067 28 560 513.0 99 182
- eliminations -2 508 -3 042 -17.6 -5 431
Total 197 955 53 090 272.9 149 374
         
Operating profit before impairment losses 7 625 -238   -3 072
% of net sales 3.9 -0.4   -2.1
Operating profit 4 925 -238   -3 072
% of net sales 2.5 -0.4   -2.1
         
Assets 259 761 73 898   242 028
Liabilities 57 610 17 809   49 616
Net assets 202 152 56 089   192 412
Investments 916 886   1 910
Depreciation 7 701 2 440   6 524
Average personnel 751 341   418
Impairment losses 2 700      


Flexibles
 

  EUR 1 000 1-6/2012 1-6/2011 Change%   1-12/2011  
             
  Net sales 26 671 33 580 -20.6 64 848  
             
  Operating profit -908 -47   -69  
  % of net sales -3.4 -0.1   -0.1  
             
  Assets 39 496 46 496   44 372  
  Liabilities 9 718 11 429   11 175  
  Net assets 29 778 35 067   33 197  
  Investments 193 1 417   1 851  
  Depreciation 1 462 1 556   3 049  
  Average personnel 456 494   479  
 
Non-allocated items


EUR 1 000
 
 
 
1-6/2012
 
 
 
1-6/2011
 
 
 
1-12/2011
 
           
  Net sales -457 -496 -873  
  Operating profit -1 132 -287 -1 688  
           
  Assets 41 113 1 943 51 685  
  Liabilities 165 812 63 296 168 557  
  Investments 97 73 203  
  Depreciation 681 18 262  
  Average personnel 9 11 10  
 
NET SALES BY MARKET AREA
       
           
  EUR 1000 1-6/2012 1-6/2011 1-12/2011  
           
  Finland 11 922 13 660 27 547  
  Europe, other 102 255 65 550 141 622  
  North and South America 103 631 5 948 41 665  
  Other countries 6 361 1 015 2 515  
  Net sales, total 224 169 86 173 213 350  

QUARTERLY FIGURES


EUR 1 000
III/2011 IV/2011 I/2011 II/2012 III/2011-II/2012
Net sales          
Wiping          
- Codi Wipes 14 936 13 116 13 118 12 278 53 447
- Nonwovens 12 189 58 433 85 673 89 394 245 689
- eliminations -778 -1 611 -1 333 -1 175 -4 897
Total 26 347 69 937 97 458 100 496 294 239
Flexibles 16 210 15 059 13 906 12 766 57 940
Non-allocated items -227 -149 -278 -180 34
Net sales, total 42 330 84 847 111 087 113 082 351 346
           

Operating profit
         
Wiping -1 674 -260 3 751 3 874 5 691
% of net sales -6.4 -0.4 3.8 3.9 1.9
Flexibles 340 -69 -576 -816 -1 121
% of net sales 2.1 -0.5 -4.1 -6.4 -1.9
Non-allocated items -72 672 -468 -664 -532
Operating profit before non-recurring costs -1 406 344 2 707 2 394 4 038
% of net sales -3.3 -0.4 2.4 2.1 1.1
           
Non-recurring items      -492 -2 702 484 -2 700 -5 410
Operating profit, total -1 899 -2 359 3 190 -306 -1 373
% of net sales -4.4 -2.8 2.9 -0.3 -0.4
           
Net financial expenses -1 255 -938 -2 731 -2 494 -7 418
Profit before income taxes -3 153 -3 297 459 -2 800 -8 791
                                       


TAXES FOR THE PERIOD UNDER REVIEW

Income tax expense is calculated on the basis of taxable results and income tax rates 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 772 thousand, obligatory pension payments EUR 55 thousand and share-based payments EUR 7 thousand.

 


Other related-party transactions

EUR 1 000
 
 
 
1-6/2012
 
 
 
1-6/2011
 
 
 
1-12/2011
Sales of goods and services 10 280   1 402
Purchases of goods and services 23 968   1 517
Trade and other receivables 1 680   5 337
Trade and other  payables 2 831   2 370


Other related-party transactions are transactions with Ahlstrom.

MOVEMENTS IN BORROWINGS
 



EUR 1 000
1-6/2012 1-6/2011
     
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 1 342 -564
Current loans from financial institutions on 30 June 21 271 16 436
     
Commercial papers on 1 January   988
Change in commercial papers    
Commercial papers on 30 June   988
     
Non-current loans on 1 January 139 961 37 294
Change in non-current loans -1 107 2 576
Non-current loans on 30 June 138 854 39 870
     
Capital loans on 1 January 1 840 6 000
Change in capital loans -920 -2 000
Capital loans on 30 June 920 4 000
     
Total borrowings on 30 June 161 045 61 294


CHANGES IN FIXED ASSETS
 

  1-6/2012 1-6/2011 1-12/2011
EUR 1 000 Tangible Intangible Tangible Intangible Tangible Intangible
Carrying value at the beginning of the period  
139 886
 
13 146
 
53 873
 
776
53 873 776
Business combinations         89 124 12 584
Investments 1 143 64 2 232 78 3 678 220
Decreases -1 401   -967   -1 226  
Depreciation -11 779 -767 -3 907 -106 -9 399 -436
Translation differences and other changes  
2 496
 
194
 
-45
  3 836 1
Carrying value at the end of the period  
130 345
 
12 636
 
51 186
 
747
139 886 13 146


CONTINGENT LIABILITIES
 

EUR 1 000 1-6/2012 1-6/2011 12/2011
For own debt      
Secured loans 157 409 56 435 158 264
 
Nominal values of pledges
     
Real estate mortgages 23 019 26 045 22 914
Floating charges 215 299 50 000 211 515
Pledged subsidiary shares and loans 216 274 82 982 213 554
       
Other own commitments      
Operating leases, real estates 28 743 11 902 29 532
Operating leases, machinery and equipment 2 523 5 462 3 482
       
Guarantee commitments 1 231 1 894 1 432


NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
 

EUR 1 000 1-6/2012 1-6/2011 12/2011
Currency derivatives      
Nominal value 14 053 6 464 8 501
Fair value 67 -17 11
       
Interest rate derivatives      
Nominal value 77 706 9 333 76 492
Fair value -288 -14 -216
       
Electricity derivatives      
Nominal value 2 525 3 596 2 860
Fair value -470 127 -458



Helsinki, 17 July 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


Suominen supplies industry and retailers with nonwovens  wet wipes, and flexible packaging for use in consumer products that people us every day – through two business areas: Wiping and Flexibles.


Distribution:
NASDAQ OMX Helsinki Ltd.
Main media

www.suominen.fi

Interim Report 20120717.pdf English.pdf

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