Suominen’s net sales for the first half of the year grew compared with the corresponding period in 2010. The second-quarter operating profit improved to zero level, but cumulatively, the operating profit was still negative. The rise in raw material costs slowed down compared to the first quarter of the year. The on-going cost-saving measures had a positive impact on the Group’s result. It is estimated that the result after taxes for the whole year will improve over 2010, but remain negative.
Group financial results
Suominen Corporation generated net sales of EUR 43.4 million (44.1) in the second quarter. Operating profit was EUR 0.0 million (0.0), profit before taxes EUR -1.4 million (-1.0) and profit after taxes EUR 1.1 million (-0.8).
Net sales for the first half of the year totalled EUR 87.7 million (84.8). Operating profit was EUR 0.6 million (-0.3), profit before taxes EUR -3.6 million (-2.5) and profit after taxes EUR -2.9 million ( 1.9).
Net sales increased by 4 per cent compared to the first six months of the previous year. Average sales prices increased, thanks both to price rises and to raw material price clauses included in sales contracts.
The operating profit for the first half of the year showed a loss of EUR 0.6 million. The rise in raw material prices slowed down compared to the first three months of the year and to certain extent levelled off. The cost impact of rising raw material prices was therefore lower in the second quarter than in the first. During the first half of the year, shorter review periods were negotiated for some raw material clauses included in sales contracts. Operating costs were down from the corresponding period in 2010. The result included EUR 0.5 million in non-recurring costs due to rationalisation measures in Flexibles.
Tight capital control and use of cash was continued. Investments were kept at a low level, and the amount of working capital decreased, despite higher raw material prices. Cash flow from operations was positive.