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Suominen Corporation’s Interim Report for 1 January – 31 March 2019: Net sales and operating profit improved

Suominen Corporation’s Interim Report for 1 January – 31 March 2019: Net sales and operating profit improved

KEY FIGURES

 

 

 

 

 

1-3 /

2019

1- 3 / 2018

1-12 /

2018

Net sales, EUR million

109.8

106.6

431.1

Comparable operating profit, EUR million

3.0

1.5

4.6

Operating profit, EUR million

3.0

1.5

4.6

Profit for the period, EUR million

1.1

-0.4

-1.7

Earnings per share, basic, EUR

0.02

-0.01

-0.03

Earnings per share, diluted, EUR

0.02

-0.01

-0.03

Cash flow from operations per share, EUR

-0.04

0.09

0.56

Return on invested capital, rolling 12 months, %

2.9

4.6

2.3

Gearing, %

68.3

68.2

65.9*

 

*restated In this financial report, figures shown in brackets refer to the comparison period last year if not otherwise stated. Highlights in January–March 2019: - Net sales increased by 3% and amounted to EUR 109.8 million (106.6). The positive impact of EUR/USD exchange rate changes on net sales was EUR 4.7 million. - Operating profit improved to EUR 3.0 million (1.5) mainly due to improved sales prices as well as change in product and customer mix.

- Cash flow from operations declined to EUR -2.4 million (5.2) mainly due to the change in net working capital.

 

Outlook for 2019 unchanged Suominen reiterates the outlook presented on January 31, 2019, in which Suominen expects that in 2019, its net sales will be at the level of 2018 (EUR 431.1 million) and comparable operating profit, excluding the positive effect of applying IFRS 16 Leases, will improve from 2018 (EUR 4.6 million).

 

Petri Helsky, President & CEO, comments on Suominen’s first quarter of 2019: “Suominen’s net sales and profitability both improved in the first quarter. Our net sales increased by 3% from the comparison period and amounted EUR 109.8 (106.6) million. The improved sales prices as well as stronger USD compared to EUR improved our net sales, even though the sales volumes decreased. Our operating profit increased to EUR 3.0 (1.5) million, mainly due to improved sales prices as well as change in product and customer mix.

 

This is a positive start for the year, however we still have a lot to do to improve our result and performance. We need to continue to take necessary actions to improve Suominen’s profitability. We will concentrate on further improving our production performance and continue to develop our commercial capabilities.

 

This first quarter was the best production quarter for our new manufacturing line in Bethune, SC, USA. During the quarter we conducted Final Acceptance Certifications (FAC) and other test runs.. These FAC’s and other test runs impacted negatively on the result, but the line’s contribution to company’s gross profit was however slightly positive. The other growth investment initiative at our plant in Green Bay, WI, USA proceeded as planned and we anticipate the new capabilities to be in full utilization by the end of 2019.

 

Our Group-wide renewal of ICT systems continued as planned as the new systems were taken into use at our Paulinia, Brazil plant on 1 April. The last remaining implementation of the new systems will take place at the Bethune, SC, plant in the US in May. I am certain that with this renewal we will increase our efficiency, productivity and transparency in the future.“


Click to open the full Interim Report (pdf)