Preliminary information on Suominen Corporation's Financial Statements for January 31 - December 31, 2012: Operating profit excluding non-recurring items improved significantly

Tampere, Finland, 2013-01-31 10:20 CET (GLOBE NEWSWIRE) -- Suominen Corporation Stock Exchange Release 31 January, 2013 at 11:20am (EET)

PRELIMINARY INFORMATION ON SUOMINEN CORPORATION’S FINANCIAL STATEMENTS FOR
JANUARY 1 – DECEMBER 31, 2012:
OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS IMPROVED SIGNIFICANTLY


 

 

KEY FIGURES 10-12/2012 10-12/2011 1-12/2012 1-12/2011
Net sales, EUR million 109.0 84.8 454.9 213.4
Operating profit before
non-recurring items, EUR million
1.9 0.3 13.7 -1.1
Operating profit, EUR million -8.2 -2.4 0.9 -4.8
Profit/loss for the period, EUR million -11.2 -3.8 -11.9 -9.5
Earnings/share, EUR -0.05 -0.02 -0.05 -0.11
Cash flow from operations/share, EUR 0.05 -0.02 0.10 -0.03
Return on invested capital (ROI), %     0.4 -3.7
Gearing, %     100.7 111.0


Nina Kopola, President and CEO:

“I am satisfied with Suominen’s development during 2012. The impacts of the acquisition of Ahlstrom’s Home and Personal business at the end of 2011 are now visible for the first time in our annual result, of which the Nonwovens business unit generates a significant share.

Consumer confidence remained more stable in North America than in Europe during 2012, which also resulted in variations in demand for our products in those market areas. In the comparable pro forma assessment, our net sales for the whole year fell from the previous year. Group’s net sales increased significantly in comparison with 2011.

Over the course of 2012, we developed the operations of the new Suominen according to plan and carried out several profitability improvement projects as part of our comprehensive Summit program. One of the key measures of the program in the fourth quarter of 2012 was the discontinuation of the production of polypropylene staple fibers at the Nakkila plant in Finland.

We were successful in carrying out the Summit program, achieving structural cost savings of around EUR 10 million during 2012. This, in fact, slightly exceeds our original target, which was approximately two per cent of our net sales.

However, impairment losses and other non-recurring items recognized during the year decreased the operating profit, which amounted to EUR 0.9 million. Operating profit before non-recurring items was EUR 13.7 million.

At the end of 2012, we sharpened Suominen’s strategy, and the Board of Directors set new financial targets for the company. The renewed strategy focuses on a common operating culture, improving profitability, growing the share of products with higher value added, and a market leadership. Our goal is a clear improvement in relative profitability, with a return on investments (ROI) of more than 10%; a solid capital structure with a gearing ratio between 40% and 80%; and organic net sales growth that exceeds the average growth rate in the industry
.”

GROUP FINANCIAL RESULTS

In the fourth quarter, Suominen’s net sales were EUR 109.0 million (84.8). Operating profit before non-recurring items was EUR 1.9 million (0.3) and after them EUR -8.2 million (-2.4). Profit before taxes was EUR -10.4 million (-3.3) and profit after taxes EUR -11.2 million (-3.8).

Net sales for the full year 2012 totaled EUR 454.9 million (213.4). Operating profit before non-recurring items was EUR 13.7 million (-1.1) and after them EUR 0.9 million (-4.8), profit before taxes EUR -9.5 million (-10.0) and profit after taxes EUR -11.9 million (-9.5).

Net sales decreased by 5% compared to the EUR 479 million pro forma net sales in 2011 due to a decline in sales volumes and reduced sales prices in Europe. The most significant factor affecting the European volumes was the burning down of a production line in Italy in the autumn of 2011. The production of the burnt spunlace line was discontinued for the first five months of 2012. Regionally, demand was stronger in the US markets than in Europe.

Non-recurring items, equaling altogether EUR 12.8 million in net value, comprised impairment losses and the restructuring costs in the Nonwovens and Codi Wipes business units as well as profits from sales of assets in the Flexibles business unit.

As part of the restructuring of the Nonwovens business unit’s operations at the Nakkila plant in Finland, the production capacity was cut down, resulting to terminations of in total 69 permanent and 4 temporary employment contracts. The restructurings led to non-recurring costs totaling EUR 5.9 million, comprising of costs of the termination period (EUR 0.4 million) and an impairment loss recognized to non-current assets (EUR 5.5 million). The impairment loss had no cash flow effect.

During the fourth quarter of 2012, Suominen performed goodwill impairment testing on its Codi Wipes business unit and recognized an impairment loss of goodwill of EUR 7.3 million. The recognition had no cash flow effect.

In the Flexibles business unit, temporary layoffs were implemented to reduce costs. Flexibles’ former production plant in Nastola, Finland, was sold during the period under review, resulting in a non-recurring gain of EUR 0.5 million.

Though the impairment losses decreased Suominen’s operating profit, the benefits of the integration of Suominen and Ahlstrom’s Home and Personal business were clearly visible in the improving operational profitability. The reduction of the Group’s operating costs continued according to plan as specified in the Summit program. The program includes the integration of Ahlstrom’s Home and Personal business with Suominen and covers the
realization of synergy benefits in sales, sourcing, optimization of production lines and logistics solutions. The aim of efficiency measures was to create cost savings representing about two per cent of net sales. At the closing date, the amount of cost savings totaled approximately EUR 10 million (some 2% of net sales). The Summit project will end in the first quarter of 2013.

The prices of raw materials, representing the biggest part of costs, fluctuated during the course of the year, but the fluctuations had no significant impacts in the full-year financial result.

Cash flow from operations in the fourth quarter was EUR 11.7 million (-4.7), and for the whole year EUR 24.9 million (-2.9). EUR 5.0 million in working capital has been released in 2012, representing 1.1% of the net sales. Capital expenditure was kept at a low level.

Completion of Ahlstrom’s Home and Personal business acquisition

The acquisition of the Brazilian unit belonging to the Home and Personal business operations acquired from Ahlstrom has been delayed. Suominen and Ahlstrom are continuing to examine the prerequisites and alternatives for completing the transaction.

Financing

The Group’s interest-bearing net liabilities amounted to EUR 97.2 million (120.8) at the end of the review period. EUR 25 million held on escrow account and included in the cash and bank were used in loan repayments. Suominen updated its financing agreements with the banks during the final quarter. At the end of 2012, the net debt to EBITDA ratio was not to exceed 4.9 and the net debt to equity ratio not to exceed 145%. At the end of the review period, the net debt to EBITDA ratio was 2.9 and the net debt to equity ratio was 101%. Also the repayment schedule of loans was postponed.

Net financial expenses were EUR 10.4 million (5.2), or 2.3% (2.4%) 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 5.0 million was released in working capital (1.9). Trade receivables amounting to EUR 13.1 million (10.9) were sold to the bank. The equity ratio was 34.5% (32.2) and the net gearing 100.7% (111.0%). Cash flow from operations was EUR 24.9 million (-2.9), representing a cash flow of EUR 0.10 per share (-0.03).

 


Capital expenditure

The company’s gross investments in production totaled EUR 4.0 million (4.0) in 2012. Planned depreciation amounted to EUR 19.6 million (9.8). Nonwovens accounted for EUR 1.9 million (1.5), Codi Wipes for EUR 0.7 million (0.4) and Flexibles for EUR 0.6 million (1.9) of total investments. The Group’s investments were in maintenance. 

NET SALES AND FINANCIAL RESULT IN SEGMENTS

Wiping

The Wiping segment of Suominen consists of two business units: Nonwovens and Codi Wipes. The net sales of the Wiping segment totaled EUR 403.2 million (149.4).

The operating profit of the Wiping segment was EUR 18.8 million (-2.2), excluding the impairment losses and non-recurring costs. Including the non-recurring items, the segment’s operating profit was EUR 5.5 million (-3.1). The result improved thanks to the business acquisition. The overall development of sales margins was satisfactory due to the positive changes in the product mix.

Net sales of the Nonwovens business unit totaled EUR 357.9 million (99.2) in 2012. Nonwovens’ comparable full year net sales (pro forma) were EUR 365 million in 2011, of which net sales decreased by 2%. Delivery volumes declined slightly in comparison with comparable operations. The main application areas for nonwoven materials were distributed as follows: baby wipes accounted for 47% of sales, household wipes for 19%, personal care wipes for 18%, and industrial wipes for 10%. Sales of nonwovens for personal care and household wipes increased, while in other application areas sales declined.  

Consumer demand in the wet wipes applications favored on the American markets was stronger than in product areas typical of Europe. European net sales were also affected by the tightening competition, a consequence of increased production capacity. At Suominen’s plant in Italy, the ramp up of the efficient spunlace production line, which had been interrupted since autumn 2011 due to damage from fire, was completed in early summer.

In the annual figures, the total impact of the changes in raw material prices was not significant in 2012. 

The codetermination negotiations at the Nakkila plant in Finland reached a conclusion. The plant’s operations will be reshaped with the objective of achieving a positive financial result. A decision was made to close down the plant’s thermobond production, one spunlace line and the in-house production of polypropylene staple fibers. Due to the measures taken, the number of employees reduced by over 70 employees, which led to non-recurring compensations of EUR 0.4 million paid for the termination period. An impairment loss of EUR 5.5 million to fixed assets was recognized due to the reductions in production capacity. 

Costs of the Nonwovens business unit declined thanks to the Summit program. The program identified several targets for cost savings, and the resulting permanent improvement in cost structure will be fully visible in Suominen’s financial result after the first quarter of 2013, when the Summit project will be completed. The measures and procedures included in the project will be incorporated into the daily operations of Nonwovens, in keeping with the Group strategy that aims to achieve significant improvements in profitability.

Net sales of the Codi Wipes business unit decreased by 11% to EUR 49.4 million (55.6). Sales of personal hygiene wipes remained at the previous year’s level, with a 50% share of the sales; sales of moist toilet wipes grew slightly (10% share) but sales of baby wipes decreased (40% share). Average sales prices reduced from the previous year. The decline in margins caused by the decreased volume was partly compensated by savings in operating expenses.

During the fourth quarter of 2012, Suominen performed goodwill impairment testing on the Codi Wipes business unit, placing greater emphasis on market risks than in prior tests due to the market uncertainty. Based on the results of the tests, Suominen recognized a goodwill impairment loss of EUR 7.3 million in the Codi Wipes business unit. The recognition had no effect on the cash flow. After the recognition of the goodwill impairment loss, EUR 11.2 million of goodwill remains in the cash generating unit
.

Flexibles

In 2012, net sales of the Flexibles segment totaled EUR 52.7 million (64.8), falling 19% from the previous year. Sales of hygiene packaging decreased due to customer losses at the end of 2011. Sales of food packaging and retail carrier bags declined, while sales of security and system packaging increased. Flexibles managed to compensate the customer losses through the procurement of new business, but weak consumer demand on the Flexibles market is slowing down the compensation. As customer estimates provided no signs of any immediate change for the positive, employees were temporarily laid off to achieve cost savings.


The operating loss of the segment was EUR -2.8 million (-0.7) excluding non-recurring items and EUR

-2.3 million (-0.1) including them. The total impact of the changes in raw material prices for flexible packaging slightly decreased profitability. Operating expenses were lower than in the previous year thanks to the rationalization 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 a share capital of EUR 11,860,056.00. 

Share trading and price

The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1 January to 31 December 2012 was 3,660,581 shares, accounting for 1.5% of the share capital and votes. The trading price varied between EUR 0.33 and EUR 0.47. The
closing trading price was EUR 0.35, giving the company a market capitalization of EUR 86,055,838 on 31 December 2012.

Own shares

On 1 January 2012 and 31 December 2012, Suominen Corporation held 60,298 of its own shares, accounting for 0.0% of the share capital and votes.

Stock options

Option right holders hold 200,000 of Suominen’s 2009B stock options. The subscription period for the 2009B stock options is from 2 May 2012 to 30 October 2013 and the subscription price is EUR 0.96.

As the registered number of Suominen’s issued shares totals 245,934,122, the number of shares may rise to a maximum of 246,134,122 after stock option subscriptions.

Share-based rewards

The target group of Suominen’s share-based incentive plan consists of approximately 14 employees. The rewards to be paid on the basis of the plan correspond to the value of an approximate maximum total of 5,050,000 Suominen Corporation shares, including also the cash-settled part. The aim of the plan is to combine the objectives of the shareholders and the key employees in order to increase the value of the company, to commit the key employees to the company, and to offer them a competitive reward plan based on long-term shareholding in the company. The plan includes one performance period, the calendar years 2012–2014. The potential reward from the performance period will be based on Suominen Group’s cumulative Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and cumulative cash flow, and it will be paid partly in the company’s shares and partly in cash.

Authorizations of the Board of Directors

The Annual General Meeting has
authorized the Board of Directors to repurchase a maximum of 3,000,000 of the company’s own shares. The Board of Directors is also authorized to decide on issuing new shares and/or conveying the company’s own shares held by the company and/or granting special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Companies Act. A maximum of 50,000,000 new shares may be issued. The maximum number of new shares that may be subscribed and own shares held by the company that may be conveyed by virtue of the special rights granted by the company is 10,000,000 shares in total which number is included in the maximum number stated earlier (50,000,000). The authorizations shall be valid until 30 June 2013.

CHANGES IN GROUP MANAGEMENT

Mr Olli E. Juvonen was appointed Vice President, General Manager of the Flexibles business area and member of the Corporate Executive Team in Suominen Corporation as of 10 December, 2012.

Mr Tapio Engström was appointed Chief Financial Officer and member of the Corporate Executive Team in Suominen Corporation as of 22 October, 2012.

Mr. Petri Rolig, Deputy CEO, announced on 2 May, 2012 that he will resign from Suominen in the end of May 2012.

Mr Hannu Sivula was appointed Vice President, Human Resources and a member of the Corporate Executive Team of Suominen Corporation as of 17 February 2012.

PERSONNEL


In 2012, Suominen employed an average of 1220 (907) people. At the end of the year, the number of employees stood at 1 232 (1 229).

BUSINESS RISKS AND UNCERTAINTIES

Suominen and Ahlstrom continue to negotiate the prerequisites and alternatives for completing the transaction of the Brazilian unit of Ahlstrom’s Home and Personal business. The conditions for achieving a solution are that a common agreement be reached on the acquisition and that financers approve of the acquisition and its financing. However, the delay or cancellation of the acquisition of the Brazilian unit would not cause financial losses for Suominen.

The estimate on the development of Suominen’s net sales is in part based on forecasts and delivery plans received from customers. Changes in these forecasts and plans resulting from changes in the market conditions or in customers’ inventory levels may affect Suominen’s net sales. Due to the continued uncertainty in the general economic situation and the cautious consumer purchasing habits, the forecasts include uncertainty.

Suominen’s customer base is fairly concentrated, which adds to the customer-specific risk. Long-term contracts are preferred in the case of the largest customers. In practice the customer relationships are long-term and last for several years. 

Suominen purchases significant amounts of oil and pulp-based raw materials annually. Raw materials are the largest cost item for operations. Rapid changes in the global market prices of raw materials affect the company’s profitability. Extended interruptions in supplies 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 through an attractive product offering, it may lose some of its market share, and the competition may lead to increased pricing pressure on the company’s products.

The Group’s damage risks are insured in order to guarantee the continuity of operations. Suominen has valid damage and business interruption insurance according to which it is estimated that the damages can be covered and the financial losses caused by an interruption compensated.    

Suominen’s credit arrangements include covenants that the company must meet. After the interim report of 30 September 2012, Suominen and its financers have agreed on adjusted financial covenants. At year-end 2012, Suominen’s net debt to EBITDA cannot exceed 4.9 and the company’s debt/equity ratio must be less than 145%. In this release, these key figures are 2.9 and 101%. At the end of 2013, the indicators may not exceed 3.6 and 125%, respectively.

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 the value in use of assets or businesses in total or in part does not necessarily correspond to the price that a third party would pay for them.

General risks related to business operations are described in the Report of the Board of Directors 2011.

OUTLOOK FOR 2013

Suominen’s products are used in daily consumer goods, such as wet wipes and plastic packaging. The general economic situation determines the development of consumer demand, even though the demand for consumer goods is not very cyclical in nature. Consumers’ cautious purchasing
behavior is expected to continue hand in hand with the muted economic growth. Supply exceeds demand for many of Suominen’s products, especially in Europe, and even more new production capacity is 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 the demand for its products will remain at the level of 2012.

Suominen continues to streamline its operating costs and realize the synergy benefits related to the acquisition of Ahlstrom’s Home and Personal business.

The company estimates that its net sales for the full year 2013 will remain at the level of 2012. Operating profit excluding non-recurring items is expected to improve from year 2012. In 2012, Suominen’s net sales were EUR 454.9 million and operating profit excluding non-recurring items EUR 13.7 million.

SUOMINEN GROUP CONSOLIDATED 1 JANUARY – 31 DECEMBER 2012

This release has been prepared in compliance with IAS 34 Interim Financial Reporting. The principles for preparing the release are the same as those used for preparing the financial statements for 2011. Additionally, the release complies with the changes in international accounting standards (IFRS) as adopted by EU that came into force in 2012. These changes have no significant impact on the release.

The figures in this release are unaudited.  


 


 


BALANCE SHEET
 

 

EUR 1,000 31 Dec 2012 31 Dec 2011
     
Assets    
     
Non-current assets    
Goodwill 26,715 34,298
Intangible assets 12,529 13,146
Tangible assets 118,019 139,886
Available-for-sale financial assets 19 212
Held-to-maturity investments 466 445
Deferred tax assets  6,067 2,756
Non-current assets, total 163,816 190,743
     
Current assets    
Inventories 42,431 45,972
Trade receivables 45,328 41,798
Other current receivables 11,772 17,480
Income tax receivables 1,293 1,205
Financial assets on escrow   25,000
Cash at bank and in hand 14,301 15,887
Current assets, total 115,125 147,342
     
Assets, total 278,940 338,085
     
Shareholders’ equity and liabilities    
     
Equity attributable to owners of the parent company    
Share capital 11,860 11,860
Share premium account 24,681 24,681
Invested non-restricted equity fund 97,054 97,054
Fair value and other reserves -1,253 -484
Translation differences -549 -637
Other shareholders’ equity -35,535 -23,737
Shareholders’ equity, total 96,258 108,737
     
Liabilities    
Non-current liabilities    
Deferred tax liabilities 5,653 3,661
Provisions 280 280
Capital loans   920
Other non-current liabilities 1,035 1,234
Interest-bearing liabilities 90,027 139,961
Non-current liabilities, total 96,995 146,056
     
Current liabilities    
Interest-bearing liabilities 20,571 19,929
Capital loans 920 920
Income tax liabilities 737 724
Trade payables and other current liabilities 63,460 61,719
Current liabilities, total 85,688 83,292
     
Liabilities, total 182,683 229,348
     
Shareholders’ equity and liabilities, total 278,940 338,085



STATEMENT OF INCOME
 

 

EUR 1,000 10-12/2012 10-12/2011 1-12/2012 1-12/2011
         
Net sales 108,971 84,847 454,909 213,350
Cost of goods sold -100,983 -80,963 -417,262 -205,507
Gross profit 7,988 3,884 37,647 7,842
Other operating income 694 2,214 6,838 4,905
Sales and marketing expenses -2,090 -1,402 -7,574 -4,050
Research and development -1,803 -577 -3,903 -1,866
Administration expenses -2,535 -733 -18,716 -4,801
Other operating expenses -309 -3,043 -568 -3,168
Operating profit before non-recurring items 1,945 344 13,724 -1,138
Non-recurring items -10,116 -2,702 -12,777 -3,691
Operating profit -8,171 -2,359 947 -4,829
Financial income and expenses -2,231 -938 -10,410 -5,197
Profit before income taxes -10,402 -3,297 -9,463 -10,026
Income taxes -788 -535 -2,409 494
Profit/loss for the period -11,190 -3,832 -11,872 -9,531
         
Earnings/share, EUR -0.05 -0.02 -0.05 -0.11


STATEMENT OF COMPREHENSIVE INCOME
 

 

EUR 1,000 10-12/2012 10-12/2011 1-12/2012 1-12/2011
         
Profit/loss for the period -11,190 -3,832 -11,872 -9,531
         
Other comprehensive income        
Currency translation differences on foreign operations -474 1 -438 -1,594
Fair value changes of cash flow hedges -247 -491 -1,007 -1,714
Other reclassifications -54 -2 -6 -20
Income tax on other comprehensive income 21 156 765 889
Other comprehensive income, total -754  -336 -686 -2,440
         
Total comprehensive income for the period -11,944 -4,167 -12,558 -11,972


 


STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
 

  1. Share capital
  2. Share premium account
  3. Invested non-restricted equity fund
  4. Own shares
  5. Translation differences
  6. Fair value reserves
  7. Retained earnings
  8. Total

 


EUR 1,000
a. b. c. d. e. f. g. h.         
                 
Total equity at 1 Jan 2012 11,860 24,681 97,054 -43 -637 -441 -23,737 108,737
                 
Profit/loss for the period             -11,872 -11,872
Other comprehensive income         88 -769 -6 -686
Share-based payments             79 78
Total equity at 31 Dec 2012 11,860 24,681 97,054 -43 -549 -1,210 -35,536 96,258



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 -441 -23,737 108,737  

 


 

CASH FLOW STATEMENT
 

 

EUR 1,000 1-12/2012 1-12/2011
     
Operations    
Operating profit 947 -4,829
Total adjustments 31,775 9,459
Cash flow before change in working capital 32,599 4,630
Change in working capital 4,961 1,907
Financial items -9,705 -9,833
Taxes paid -3,040 397
Cash flow from operations 24,938 -2,898
     
Investment payments    
Investments in tangible and intangible assets -3,619 -4,231
Investments in acquired business operations    -139,810
Proceeds from disposal of fixed assets and other proceeds 2,115 1,628
Cash flow from investing activities -1,504 -142,414
     
Financing    
Non-current loans drawn   148,250
Repayments of non-current loans -38,713 -48,563
Repayments of capital loans -920 -4,160
Change in current loans -10,550  
Repurchase and conveyance of own shares   51
Share issue   87,346
Cash flow from financing -50,183 182,924
     
Change in cash and cash equivalents * -26,749 37,613
     
Cash and cash equivalents 40,887 3,253
Unrealized exchange rate differences   164 21
Change in cash and cash equivalents   -26,749 37,613
Cash and cash equivalents   14,301 40,887
       

* Also includes the change in restricted financial assets.

 


KEY FIGURES
10-12/2012 10-12/2011 1-12/2012 1-12/2011
         
Net sales, change, % * 28.4 87.2 113.2 23.0
Gross profit, % ** 7.3 4.6 8.3 3.7
Operating profit, % ** -7.5 -2.8 0.2 -2.3
Financial income and expenses, % ** -2.0 -1.1 -2.3 -2.4
Profit before income taxes, % ** -9.5 -3.9 -2.1 -4.7
Profit for the period, % ** -10.3 -4.5 -2.6 -4.5
Earnings/share, EUR -0.05 -0.02 -0.05 -0.11
         
Equity/share, EUR     0.39 0.44
Cash flow from operations/share, EUR     0.10 -0.03
Return on equity (ROE), %     -11.2 -20.9
Return on invested capital (ROI), %     0.4 -3.7
Equity ratio, %     34.5 32.2
Gearing, %     100.7 111.0
         
Gross investments, EUR 1,000       4,008 3,964
Depreciation, EUR 1,000     19,606 9,835
Impairment losses, EUR 1,000       12,816  

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

SEGMENT REPORTING

Wiping

 

 

EUR 1,000 1-12/2012 1-12/2011  Change %
       
Net sales      
- Codi Wipes 49,436 55,623 -11.1
- Nonwovens 357,873 99,182 260.8
- eliminations -4,108 -5,431 -24.4
Total 403,201 149,374 169.9
       
Operating profit before non-recurring items 18,803 -2,172  
% of net sales 4.7 -1.5  
Operating profit 5,542 -3,072  
% of net sales 1.4 -2.1  
       
Assets 237,084 242,028  
Liabilities 53,446 49,616  
Net assets 183,638 192,412  
Investments 2,608 1,910  
Depreciation 15,358 6,524  
Impairment losses 12,816    
Average personnel 758 418  


 

 

Flexibles
 

 

EUR 1,000 1-12/2012 1-12/2011   Change %
       
Net sales 52,698 64,848 -18.7
       
Operating profit before non-recurring items -2,786 721  
% of net sales -5.3 1.1  
Operating profit -2,302 -69  
% of net sales -4.4 -0.1  
       
Assets 37,087 44,372  
Liabilities 8,634 11,175  
Net assets 28,453 33,197  
Investments 554 1,851  
Depreciation 2,868 3,049  
Average personnel 453 479  


Non-allocated items
 

 

EUR 1,000 1-12/2012 1-12/2011  
     
Net sales -991 -873
Operating profit -2,293 -1,688
     
Assets 4,770 51,685
Liabilities 120,604 168,557
Investments 845 203
Depreciation 1,380 262
Average personnel 9 10


NET SALES BY MARKET AREA
 

 

EUR 1,000 1-12/2012 1-12/2011  
     
Finland 23,917 27,547
Europe, other 205,570 141,622
North and South America 213,776 41,665
Other countries 11,645 2,515
Net sales, total 454,909 213,350


 

 

 

QUARTERLY FIGURES

 

 

EUR 1 000 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1-Q4/2012
Net sales          
Wiping          
- Codi Wipes 13,118 12,278 12,161 11,880 49,436
- Nonwovens 85,673 89,394 97,917 84,890 357,873
- eliminations -1,333 -1,175 -711 -889 -4,108
Total 97,458 100,496 109,366 95,880 403,201
Flexibles 13,906 12,766 12,658 13,369 52,698
Non-allocated items -278 -180 -255 -278 -991
Net sales, total 111,087 113,082 121,769 108,971 454,909
           
Operating profit          
Wiping 3,751 3,874 8,146 3,032 18,803
% of net sales 3.8 3.9 7.4 3.2 4.7
Flexibles -576 -816 -576 -818 -2,786
% of net sales -4.1 -6.4 -4.5 -6.1 -5.3
Non-allocated items -468 -664 -891 -270 -2,293
Operating profit before non-recurring items 2,707 2,394 6,679 1,944 13,724
% of net sales 2.4 2.1 5.5 1.8 3.0
           
Non-recurring items 484 -2,700 -445 -10,116 -12,777
Operating profit, total 3,190 -306 6,234 -8,171 947
% of net sales 2.9 -0.3 5.1 -7.5 0.2
           
Net financial expenses -2,731 -2,494 -2,954 -2,230 -10,409
Profit before income taxes 459 -2,800 3,280 -10,402 -9,463


TAXES FOR THE PERIOD UNDER REVIEW

Income tax expense is calculated by country, on the basis of taxable results and income tax rates.

INFORMATION ON RELATED PARTIES

Suominen has related party relationships with the members of the Board of Directors, and the members of the Corporate Executive Team, and Ahlstrom Corporation, including its subsidiaries and associated companies. The company has no investments in associated companies. Salaries paid to the related parties amounted to EUR 1,386 thousand, obligatory pension payments EUR 101 thousand, voluntary pension payments EUR 38 thousand and share-based payments EUR 79 thousand.


Other related-party transactions
 

 

EUR 1,000 1-12/2012 1-12/2011
Sales of goods and services 19,653 1,402
Purchases of goods and services 54,191 1,517
Trade and other receivables 1,049 5,337
Trade and other payables 2,165 2,370


Other related-party transactions are transactions with Ahlstrom. 
 


 

 

 

 

CHANGES IN BORROWINGS

 
   
EUR 1,000 1-12/2012 1-12/2011
     
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 642 2,929
Current loans from financial institutions on 31 December 20,571 19,929
     
Commercial papers on 1 January   988
Change in commercial papers   -988
Commercial papers on 31 December   0
     
Non-current loans on 1 January 139,961 37,284
Change in non-current loans -49,934 102,667
Non-current loans on 31 December 90,027 139,961
     
Capital loans on 1 January  1,840 6,000
Change in capital loans -920 -4,160
Capital loans on 31 December 920 1,840
     
Total borrowings on 31 December 111,518 161,730


CHANGES IN FIXED ASSETS
 

 

  1-12/2012     1-12/2011
EUR 1,000 Tangible Intangible Tangible Intangible
Book value at the beginning of the period 139,886 13,146 53,873 776
Business combinations     89,124 12,584
Investments 3,261 747 3,678 223
Decreases -1,385   -1,271  
Depreciation -23,603 -1,542 -9,399 -436
Translation differences and other changes -140 179 3,881 -1
Book value at the end of the period 118,019 12,529 139,886 13,146

 


CONTINGENT LIABILITIES
 

 

EUR 1,000 1-12/2012 12/2011
For own debt    
Secured loans 107,861 158,264
     
Nominal values of pledges      
Real estate mortgages 27,045 27,045
Floating charges 193,988 194,414
Pledged subsidiary shares and loans 209,160 217,812
     
Other own commitments    
Operating leases, real estates 27,177 29,532
Operating leases, machinery and equipment 2,681 3,482
     
Guarantee commitments 1,199 1,432




NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
 

 

EUR 1,000 1-12/2012 12/2011
Currency derivatives    
Nominal value 15,749 8,501
Fair value -7 11
     
Interest rate derivatives    
Nominal value 64,648 76,492
Fair value -1,538 -216
     
Electricity derivatives    
Nominal value 3,746 2,860
Fair value -282 -458


Suominen will publish its Financial Statement Release in accordance with the previously disclosed schedule, on 15 February, 2013.

Helsinki, 31 January, 2013

SUOMINEN CORPORATION
Board of Directors

For additional information, please contact:
Mrs Nina Kopola, President and CEO: +358 (0)10 214 300
Mr Tapio Engström, Vice President and CFO, tel. +358 (0)10 214 300

Distribution:
NASDAQ OMX Helsinki Ltd
Key media

www.suominen.fi

Suominen supplies its industrial and retail customers with nonwovens, wet wipes and flexible packaging for use in consumer products worldwide. Suominen is the global market leader in nonwovens for wipes. The company employs approximately 1,200 persons in Europe and in the United States. Suominen’s net sales in 2012 amounted to MEUR 454.9 and operating profit excl. non-recurring items was MEUR 13.7. The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange. Read more at www.suominen.fi.

Preliminary information on FY2012 Suominen Corporation.pdf

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