Rights offering strengthened the balance sheet, result negative
Suominen Corporation generated net sales of EUR 44.1 million (43.4) in the second quarter. Operating profit was EUR 0.0 million (1.6), profit before taxes EUR -1.0 million (0.0) and profit after taxes EUR -0.8 million (0.1).
Net sales for the first two quarters totalled EUR 84.8 million (90.3). Operating profit was EUR -0.3 million (5.1), profit before taxes EUR -2.5 million (2.0) and profit after taxes EUR -1.9 million (1.6).
Suominen's net sales for the first six months in 2010 declined by 6 per cent compared to the corresponding period in 2009. Reasons behind the decrease were the decline in the prices of wet wipes and in the delivery volumes of nonwovens.
Because lower sales prices and decreased delivery volumes could not be compensated for through cost savings, the result was loss-making. Raw material prices continued to rise during the first part of the year. As there is a delay in passing cost increases through to sales prices, margins weakened. The stock of finished products was increased for the summer period.
Investments still remained on a low level.