Suominen Corporation Stock Exchange Release 13 December 2017 at 9:00 am EET
Suominen expects weak profitability for Q4, guidance remains intact
On 20 July 2017, Suominen revised its estimate regarding the operating profit development in 2017 and announced that for the full year 2017, its comparable operating profit will fall short of the 2016 level (in 2016: EUR 25.6 million). While Suominen considers the current verbal guidance to be correct, it provides preliminary information on the anticipated development of its profitability during the fourth quarter of 2017.
Suominen’s new production line at the Bethune, SC, USA plant is still in the ramp-up phase. While the production volumes have continuously increased, the development has been slower than expected and we have had difficulties in reaching the anticipated performance level due to machinery-related design issues. However, we still expect that the new line will contribute positively to Suominen’s gross profit as of the beginning of 2018.
Due to the challenges in the ramp-up of the new manufacturing line, Suominen anticipates that the operating profit of the last quarter of 2017 will be weak.
Suominen repeats its estimate and expects that for the full year 2017, its net sales will improve from year 2016 but its comparable operating profit will fall short of the 2016 level. In 2016, Suominen’s net sales amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million.
Board of Directors
For additional information, please contact:
Nina Kopola, President & CEO, tel. +358 (0)10 214 300
Tapio Engström, Senior Vice President and CFO, tel. +358 (0)10 214 300
+358 10 214 300