Increase in net sales, result negative
Despite an increase in net sales, Suominen's first-quarter operating profit was negative. The operative result was affected by higher raw material prices. The on-going rationalisation of operations had a positive effect on the Group's result. It is estimated that the result after taxes for all of 2011 will improve over 2010, but remain negative.
Group financial results
Suominen Corporation generated net sales of EUR 44.3 million (40.6) in the first quarter. Operating profit was EUR -0.6 million (-0.3), profit before taxes EUR -2.2 million (-1.5) and profit after taxes EUR -1.7 million (-1.1).
Net sales increased by 9 per cent compared to the first quarter of the previous year. Average sales prices increased thanks to raised prices and raw material price mechanisms included in sales contracts.
The operating profit for the period showed a loss of EUR 0.6 million. The first-quarter result was burdened, in particular, by increases in raw material prices, which could not be compensated for by increased sales prices during the period. The operating costs decreased from the corresponding period in 2010. The first quarter result included EUR 0.2 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 slightly despite higher raw material prices. Cash flow from operations was positive.