In the beginning of 2010, demand for Suominen's products and deliveries to customers have been lower than expected and lower than in the corresponding period of the previous year. Finnish harbour strike has affected especially the exports from Nonwovens business unit. Suominen's raw material and energy costs have risen clearly in the beginning of the year and the company has not yet been able to pass on these rises to sales prices. Consequently, Q1 result is expected to be negative.
Suominen estimated in the beginning of the year that no signs of recovery are visible in the demand for Suominen's products, and that no major changes can be seen in sales volumes from the 2009 level. It was expected that raw material prices will rise. Suominen's operating result was expected to be equal to the 2009 level.
Due to the drop of deliveries in the beginning of the year, sales volumes for the whole year are expected to fall from the previous year. Operating profit for 2010 is expected to decline on 2009, resulting from the lower sales volumes and higher raw material and energy costs.
Helsinki, 23 March 2010
Board of Directors
For addition information please contact:
Mr. Petri Rolig, President and CEO, tel. +358 (0)10 214 300
Mr. Arto Kiiskinen, Vice President and CFO, tel. +358 (0)10 214 300