Reformed Suominen – result improved but still showing losses
During the year under review, Suominen acquired the Home and Personal nonwovens business, with net sales of approximately EUR 320 million, from Ahlstrom Corporation. As a result of the acquisition, Suominen has become the global market leader in nonwovens for wipes. The transaction was valued at approximately EUR 170 million, around EUR 87 million of which was raised through a share issue.
The merger entered into force as of 1 November 2011, which means the net sales and result of the acquired business was included in Suominen’s financial figures for two months. Suominen’s net sales in 2011 were EUR 216.3 million; net sales in the previous year were EUR 173.4 million. Operating profit for the year, excluding non-recurring items, were negative, and stood at EUR 1.1 million (-3.8). Non-recurring items of EUR 3.7 million (7.1 million) related to the business acquisition and to the closure of the plant in Nastola. The low economic cycle affected Suominen’s business such that customers’ purchasing behaviour was cautious and price-driven. Nonwovens’ comparable sales volumes remained at the previous year’s level, but Codi Wipes’ and Flexibles’ volumes decreased. The result improved mostly as a result of lower operating expenses.
Earnings per share were EUR -0.11 (-0.34). Cash flow from operations was EUR -0.03 per share (-0.06). The Board of Directors proposes that no dividend be paid for the financial year 2011.