Suominen’s net sales for the first nine months of the year grew compared with the corresponding period in 2010. The operating profit for the third quarter was negative, as it was for the entire reporting period. Sales margins improved during the third quarter, but production volumes were lower than average. The ongoing cost-saving measures had a positive impact on the Group’s result. On 4 August 2011, Suominen concluded an agreement on the acquisition of Ahlstrom’s Home and Personal business area and in October, organised a EUR 87 million share issue to finance part of the acquisition. The transaction will be finalised on 31 October 2011.
Group financial results
Suominen generated net sales of EUR 43.1 million (43.4) in the third quarter. Operating loss was EUR 1.9 million (1.8), profit before taxes EUR -3.2 million (-2.9) and profit after taxes EUR 2.8 million (-2.1).
Net sales for the nine-month period totalled EUR 130.8 million (128.1). Operating loss was EUR 2.5 million (2.2), profit before taxes EUR -6.7 million (-5.3) and profit after taxes EUR -5.7 million (-4.0). Net sales increased by 2 per cent compared to the first nine months of the previous year. Average sales prices and margins improved, as sales prices rose and raw material price clauses included in sales con-tracts began to have an effect.
The rise in raw material prices halted compared to the first six months of the year. Shorter review periods for some raw material clauses included in sales contracts were implemented. Production volumes were lower than average due to the summer season, which led to a negative result. Operating costs were down from the corresponding period in 2010. The result included EUR 1.0 million in nonrecurring costs.
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.