SUOMINEN'S RESULT ON LOSS, POSITIVE CASH FLOW
Suominen Corporation's net sales for the third quarter totalled EUR 55.2 million (55.7). Operating profit was EUR -0.8 million (0.5), profit before taxes EUR -2.0 million (-0.5) and profit after taxes EUR -1.5 million (-0.3).
Net sales for the nine-month period totalled EUR 164.8 million (161.2). Operating profit was EUR -0.3 million (2.2), profit before taxes EUR -3.8 million (-0.6) and profit after taxes EUR -2.9 million (-0.4).
The strong fluctuations in raw material prices continued, especially in the prices of oil-based raw materials used for flexible packaging. The quoted prices for supplies for the summer period reached a record high level, but during the autumn the prices have decreased. The costs of increased raw material prices that were not compensated by higher sales prices during the period under review exceeded those of the previous year by EUR 2 million. Reduced volumes and stocks as well as lower prices have weakened the operating profit by some EUR 3 million on the corresponding period in 2007. Energy and payroll costs increased by some EUR 2 million. The Company's operational enhancement programme has generated EUR 4.5 million since the previous year.