Concerning net sales for 2010, Suominen has estimated that delivery volumes are going to grow during the latter half of 2010 in comparison with the first part of the year, but nevertheless not expected to reach the previous year’s level. Operating profit was expected to be lower than in 2009, resulting from the decrease in sales volumes and the rise in raw material and energy costs during the first part of the year.
At present, Suominen expects delivery volumes to grow during the latter part of the year, but less than previously anticipated. Suominen has today given a negotiation proposal to the representatives of employee groups at the Flexibles business unit in Finland according to Co-Determination Act. In case the possible headcount reduction and the closure of the Nastola plant will take place according to the negotiation proposal, Suominen Corporation books non-recurring costs of approximately EUR 2.5 million mainly for the current year.Suominen's operating profit for 2010 is expected to be negative due to lower delivery volumes and non-recurring costs.
Suominen's credit agreements include financial covenants concerning the ratio of net debts to EBITDA and maximum non-default levels. Suominen expects that the company will not able to comply with the covenants. Consequently, Suominen has started negotiations with the banks on provisional amendments concerning the covenants and other credit terms.
Helsinki, 2 September 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