SUOMINEN CORPORATION INTERIM REPORT 1 JANUARY - 31 MARCH 2007 (IFRS)
SUOMINEN RECORDED A PROFIT -------------------------------------------------------------------------------- | | 1-3/2007 | 1-3/2006 | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, EUR million | 54.3 | 49.3 | 202.6 | -------------------------------------------------------------------------------- | Operating profit, EUR million | 1.3 | 0.6 | 1.2 | -------------------------------------------------------------------------------- | Profit/loss for the period, EUR | 0.2 | -0.3 | -1.8 | | million | | | | -------------------------------------------------------------------------------- | Earnings/share, EUR | 0.01 | -0.01 | -0.08 | -------------------------------------------------------------------------------- | Return on invested capital (ROI), % | 3.5 | 1.7 | 0.9 | -------------------------------------------------------------------------------- | Cash flow from operations/share, EUR | -0.05 | 0.15 | 0.53 | -------------------------------------------------------------------------------- | Cash flow from operations before | 0.10 | 0.19 | 0.53 | | interest-bearing receivables/share, | | | | | EUR | | | | -------------------------------------------------------------------------------- Suominen recorded a profit for the first quarter thanks to a good development of sales and efficiency-enhancement measures. Outlook: Net sales during 2007 are expected to increase and the operating profit and results are expected to improve on those of 2006. FINANCIAL RESULTS Suominen Corporation's net sales for the first quarter totalled EUR 54.3 million (49.3), up 10 per cent on the figure for the corresponding period in 2006. The volume of sales developed strongly in all units. Operating profit was EUR 1.3 million (0.6), profit before taxes EUR 0.3 million (-0.3) and profit after taxes EUR 0.2 million (-0.3). Prices for raw materials rose on the corresponding period in 2006. Energy and transportation costs decreased. COST SAVING AND OPERATIONAL ENHANCEMENT PROGRAMME In autumn 2006 a decision was taken on an operational enhancement programme called Stairs to Top, which is an action programme to develop operations and improve efficiency on a continuous basis, and to increase sales. Systematic work on the plans and actions included in the programme continued in the Group's units. Cost savings and efficiency-enhancement measures generated over EUR 1 million during the period under review. FINANCING Interest-bearing liabilities totalled EUR 92.1 million, i.e. EUR 2.8 million more than at the beginning of the year. Liabilities include capital loans of EUR 4 million. Net financial expenses were EUR 0.9 million (0.9) or 1.7 per cent (1.9) of net sales. A total of EUR 5.0 million was tied up in working capital in the cash flow statement, including EUR 3.6 million of interest-bearing prepayments of Finnish Employment Pension Scheme (TyEL) contributions for the whole year. The equity ratio was 31.3 per cent (32.2), and the gearing ratio (ratio of interest-bearing net liabilities to shareholders' equity) was 159.1 per cent (158.3). Cash flow from operations was EUR -0.05 per share (0.15). INVESTMENTS The Company's gross investments in production totalled EUR 2.3 million (0.8). Planned depreciation amounted to EUR 3.6 million (3.7). Wet Wipes accounted for EUR 0.8 million, Nonwovens EUR 0.4 million and Flexible Packaging EUR 1.1 million of total investments. The investments focussed on the extension of Flexible Packaging's production facilities in Poland, and replacement and maintenance investments. SEGMENT RESULTS During the period under review, net sales of the Wipes and Nonwovens business area totalled EUR 34.5 million, an increase of 12 per cent on the corresponding period in 2006, as sales of both wet wipes and nonwovens continued to grow. Internal deliveries decreased. External purchases of nonwovens for use in standard wet wipes increased as planned. The Wipes and Nonwovens business area recorded an operating profit of EUR 0.6 million (-0.4). Net sales of Wet Wipes totalled EUR 18.0 million and rose by 7 per cent on the previous year due to increased sales volumes. Average sales prices fell slightly. It is estimated that growth in the European wet wipe markets continued. Deliveries to brand owners increased, while there were no significant changes in the sales to retailers. The efficiency of production continued to improve, but cost-savings in personnel costs were behind planned. Net sales of Nonwovens increased by 6 per cent to EUR 17.9 million thanks to increased sales of hydroentangled material. Sales of thermally bonded nonwovens remained at the same level as in 2006. Average sales prices were at the same level as in the corresponding period in 2006. The price increase of viscose raw material had a negative impact on performance. The unit saved in energy and logistics costs. The new power plant for process heat reduced energy costs, even though the price for the main fuel, wood chips, was rising. Suominen decided on an investment of EUR 1.2 million to improve production efficiency in the Nonwovens business unit. The investment will improve the processing of process waters, increase the capacity of the unit, and enable the manufacture of new products. Net sales of Flexible Packaging totalled EUR 19.9 million, an increase of 7 per cent on the previous year. Flexible Packaging generated an operating profit of EUR 1.0 million (1.0). The increase in net sales was due to higher sales volumes. The volumes of hygiene packaging and carrier bags for the retail trade grew above average growth, while food packaging volumes were on the level of the previous year. The investment in the new printing machine in the Polish plant proceeded as planned, and new production is due to commence next summer. During the period under review, a decision was taken to extend the facility in Poland. All production from the Kauhava plant was transferred to other plants. Improvement of efficiency continued, and negotiations were started with the representatives of employees at the Swedish plant to adjust operations. As a result of the negotiations, a reduction of 13 people will be made in personnel during 2007. ANNUAL GENERAL MEETING OF SHAREHOLDERS Suominen Corporation's Annual General Meeting of Shareholders was held on 29 March 2007. The General Meeting decided that a dividend of EUR 0.06 per share be paid for 2006. The dividends were paid on 12 April 2007. The General Meeting approved the financial statements for 2006 and released the members of the Board of Directors and the President and CEO from liability for the financial period. The General meeting elected Heikki Bergholm, Kai Hannus, Pekka Laaksonen, Juhani Lassila, Mikko Maijala and Heikki Mairinoja to the Board of Directors. In its initial meeting, the Board of Directors elected Mikko Maijala as Chairman and Pekka Laaksonen as Deputy Chairman. PricewaterhouseCoopers Oy, Authorised Public Accountants, with Heikki Lassila, APA, as the principal auditor, were elected as auditors of Suominen Corporation. AMENDMENTS TO THE ARTICLES OF ASSOCIATION The Annual General Meeting of Shareholders held on 29 March 2007 adopted the following amendments to the Articles of Association: 1) Clause 3 on the minimum and maximum share capital and the number of shares was omitted. 2) Clause 4 on the book-entry system was amended so as to delete all sections but the sentence stating that the Company's shares are incorporated in the book-entry system. 3) Clause 8 was amended so as to replace the expression “authorise to sign the Company name” by the expression “authorise to represent the Company” in line with the terminology of the new Finnish Companies Act. 4) Clause 12 was amended so as to stipulate that the invitation to the General Meeting of Shareholders shall be published no later than 17 days prior to the General Meeting of Shareholders. 5) Clause 14, point 1 was amended so as to stipulate that the financial statements, including the consolidated financial statements, and the report by the Board of Directors shall be presented at the Annual General Meeting of Shareholders; and points 3 and 4 amended so as to stipulate that the Annual General Meeting of Shareholders shall decide on the approval of the financial statements and the consolidated financial statements and the use of the profit shown in the balance sheet. COMPANY SHARES The number of Suominen Corporation's shares traded on the Helsinki Stock Exchange from 1 January to 31 March 2007 was 2,643,690 or 11.1 per cent of the shares included in the Company's share capital. The trading price varied from EUR 2.97 to EUR 3.79. The final trading price was EUR 3.50. The Company's market capitalisation was EUR 82.8 million on 31 March 2007. THE COMPANY'S OWN SHARES On 1 January 2007, the Company held 51,121 of its own shares, with an acquisition value of EUR 3.19 per share. The Annual General Meeting of Shareholders held on 29 March 2007 authorised the Board of Directors to decide on the acquisition of a maximum of 1,186,000 of the Company's own shares. The authorisation will be valid for 18 months after the decision of the General Meeting. The repurchased shares will be used as payment in business acquisitions or other arrangements in the Company's business, to finance investments, to implement incentive programmes, will be held by the Company, or will be otherwise conveyed or cancelled. The Company's own shares will be repurchased otherwise than in proportion to the holdings of the shareholders by using non-restricted equity through public trading on the Helsinki Stock Exchange at the market price prevailing at the time of acquisition. The General Meeting also authorised the Board of Directors to decide on the conveyance of a maximum of 1,237,000 of the Company's own shares. The authorisation will be valid for 18 months after the end of the General Meeting. During the period under review, the Board of Directors did not exercise its authorities to buy or convey the Company's own shares. On 31 March 2007, Suominen Corporation held a total of 51,121 of its own shares, accounting for 0.2 per cent of the share capital and votes. STOCK OPTIONS 2007 The Annual General Meeting of Shareholders held on 29 March 2007 approved the Board of Directors' proposal to issue stock options to the Executive Team of Suominen Corporation. A maximum of 200,000 stock options shall be issued as specified by the Board of Directors. Each stock option entitles its holder to subscribe for one (1) share of Suominen Corporation. The number of Company shares may increase as a result of such subscriptions by a maximum of 200,000 shares, and the share capital by a maximum of EUR 100,000. The subscription period for the 2007A stock options is from 2 May 2009 to 30 October 2010, for the 2007B stock options, the corresponding period in 2010 and 2011. However, the Board of Directors is authorised to start the subscription period at an earlier time at its own discretion. The share subscription price for the 2007A stock options shall be the trade volume-weighted average price of the Company's share on the Helsinki Stock Exchange in May 2007, and for the 2007B stock options the weighted average price in May 2008. The subscription price shall be reduced if the Company distributes dividends or other funds from the reserves of non-restricted equity or if the Company reduces its share capital by distributing share capital to the shareholders. As the registered number of Suominen's issued shares totals 23,720,112, the number of shares may rise to a maximum of 24,220,112 after stock option subscriptions, taking into account the previous stock option plan. OTHER AUTHORISATION FOR THE BOARD OF DIRECTORS The Board of Directors is not currently authorised to issue shares, convertible bonds or bonds with warrants. OUTLOOK Net sales for 2007 are expected to increase on the previous year, and profit for the financial year is expected to be positive. The estimate on sales growth is based on forecasts given by customers and on our own forecasts. Profitability is expected to improve due to planned cost-savings, improved efficiency and growth in sales. Expanding operations in Poland, in particular, is expected to increase investments to a level of EUR 12 million in 2007. NEAR-FUTURE UNCERTAINTIES Uncertainties affecting Suominen's business are described in the report by the Board of Directors for 2006. The estimate on the development of Suominen's net sales is partly based on forecasts given by customers. Changes in the market situation or changes in products and suppliers may change net sales from the forecast. Rapid fluctuations in raw material prices may affect Suominen's margins. The sensitivity of Suominen's goodwill to changes in the business environment is described in the notes to the financial statements for 2006. The installation of the printing machine at Flexible Packaging's Polish plant is due to be completed next summer. A delay in start-up is possible, but the unit is experienced at starting up new machinery. SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY - 31 MARCH 2007 (IFRS) This interim report has been prepared in compliance with IAS 34 Interim Financial Reporting. Principles for preparing the interim report are the same as those used for preparing the financial statements for 2006, and this interim report should be read parallel to the financial statements for 2006. Amendments to and interpretations of published accounting standards and new accounting standards that came into effect on 1 January 2007 are presented in the financial statements for 2006. Suominen has adopted the IFRS 7 Financial Instruments: Disclosures standard, which came into effect on 1 January 2007, and the amendments to IAS 1 relating to it. The Company also complies with the interpretation of IFRIC 10 Interim Financial Reporting and Impairment, which prohibits, for example, the reversal of impairment losses recognised for goodwill during previous interim periods. In its principles for preparing the financial statements, Suominen has not applied any changes allowed by the published new standards and interpretations prior to their official introduction. The most important reform known concerns segment reporting, the standard on which will enter into force on 1 January 2009. The figures in this interim report have not been audited. STATEMENT OF INCOME -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | 1-12/2006 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | NET SALES | 54 299 | 49 302 | 202 627 | -------------------------------------------------------------------------------- | Cost of goods sold | -50 252 | -45 886 | -189 522 | -------------------------------------------------------------------------------- | GROSS PROFIT | 4 047 | 3 416 | 13 105 | -------------------------------------------------------------------------------- | Other operating income | 475 | 172 | 724 | -------------------------------------------------------------------------------- | Sales and marketing expenses | -1 045 | -885 | -3 567 | -------------------------------------------------------------------------------- | Research and development | -435 | -520 | -2 009 | -------------------------------------------------------------------------------- | Administration expenses | -1 692 | -1 473 | -6 292 | -------------------------------------------------------------------------------- | Other operating expenses | -100 | -126 | -771 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 1 250 | 584 | 1 190 | -------------------------------------------------------------------------------- | Interest and other financial income and | -945 | -971 | -4 024 | | expenses | | | | -------------------------------------------------------------------------------- | Fair value gains and losses | 6 | 44 | 97 | -------------------------------------------------------------------------------- | PROFIT BEFORE INCOME TAXES | 311 | -343 | -2 737 | -------------------------------------------------------------------------------- | Income taxes | -80 | 58 | 954 | -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE PERIOD | 231 | -285 | -1 783 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings/share, EUR | 0.01 | -0.01 | -0.08 | -------------------------------------------------------------------------------- KEY FIGURES ON STATEMENT OF INCOME -------------------------------------------------------------------------------- | | 1-3/2007 | 1-3/2006 | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, change, % * | 10.1 | 1.3 | 3.8 | -------------------------------------------------------------------------------- | Gross profit, % ** | 7.5 | 6.9 | 6.5 | -------------------------------------------------------------------------------- | Operating profit, % ** | 2.3 | 1.2 | 0.6 | -------------------------------------------------------------------------------- | Financial income and expenses, % ** | -1.7 | -1.9 | -1.9 | -------------------------------------------------------------------------------- | Profit before income taxes, % ** | 0.6 | -0.7 | -1.4 | -------------------------------------------------------------------------------- | Profit for the period, % ** | 0.4 | -0.6 | -0.9 | -------------------------------------------------------------------------------- * Compared with the corresponding period of the previous year. ** As of net sales. BALANCE SHEET -------------------------------------------------------------------------------- | EUR 1 000 | 3/2007 | 3/2006 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Goodwill | 34 195 | 34 195 | 34 195 | -------------------------------------------------------------------------------- | Intangible non-current assets | 945 | 1 027 | 944 | -------------------------------------------------------------------------------- | Tangible non-current assets | 74 861 | 84 599 | 77 168 | -------------------------------------------------------------------------------- | Available-for-sale financial assets | 725 | 878 | 766 | -------------------------------------------------------------------------------- | Held-to-maturity investments | 100 | 100 | 100 | -------------------------------------------------------------------------------- | Deferred tax assets | 888 | 1 278 | 882 | -------------------------------------------------------------------------------- | Non-current assets, total | 111 714 | 122 077 | 114 055 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 29 147 | 29 579 | 27 840 | -------------------------------------------------------------------------------- | Trade receivables | 25 540 | 24 083 | 25 583 | -------------------------------------------------------------------------------- | Loan receivables | | 270 | | -------------------------------------------------------------------------------- | Other current receivables | 8 163 | 5 002 | 6 240 | -------------------------------------------------------------------------------- | Income tax receivables | 1 257 | 903 | 918 | -------------------------------------------------------------------------------- | Cash at bank and in hand | 282 | 976 | 1 220 | -------------------------------------------------------------------------------- | Current assets, total | 64 389 | 60 813 | 61 801 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets, total | 176 103 | 182 890 | 175 856 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | | | | -------------------------------------------------------------------------------- | Share capital | 11 860 | 11 860 | 11 860 | -------------------------------------------------------------------------------- | Share premium account | 24 681 | 24 681 | 24 681 | -------------------------------------------------------------------------------- | Fair value and other reserves | 955 | 1 828 | 1 185 | -------------------------------------------------------------------------------- | Translation differences | 560 | 591 | 738 | -------------------------------------------------------------------------------- | Other shareholders' equity | 17 106 | 19 979 | 18 279 | -------------------------------------------------------------------------------- | Shareholders' equity, total | 55 162 | 58 939 | 56 743 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 6 083 | 7 803 | 6 768 | -------------------------------------------------------------------------------- | Pension liabilities | 290 | 260 | 314 | -------------------------------------------------------------------------------- | Provisions | 85 | 200 | 85 | -------------------------------------------------------------------------------- | Capital loans | 2 000 | 4 000 | 2 000 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 62 817 | 66 737 | 63 133 | -------------------------------------------------------------------------------- | Other non-current liabilities | 12 | 30 | 13 | -------------------------------------------------------------------------------- | Non-current liabilities, total | 71 287 | 79 030 | 72 313 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 25 318 | 23 285 | 22 202 | -------------------------------------------------------------------------------- | Provisions | 115 | 200 | 115 | -------------------------------------------------------------------------------- | Capital loans | 2 000 | 2 000 | 2 000 | -------------------------------------------------------------------------------- | Income tax liabilities | 697 | 520 | 67 | -------------------------------------------------------------------------------- | Trade payables and other current | 21 524 | 18 916 | 22 416 | | liabilities | | | | -------------------------------------------------------------------------------- | Current liabilities, total | 49 654 | 44 921 | 46 800 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities, total | 120 941 | 123 951 | 119 113 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity and liabilities, | 176 103 | 182 890 | 175 856 | | total | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Foreign currency translation difference | -241 | -169 | 240 | | for foreign operations | | | | -------------------------------------------------------------------------------- | Cash flow hedges | | | | -------------------------------------------------------------------------------- | Hedge result deferred in equity | -325 | 2 966 | 1 932 | -------------------------------------------------------------------------------- | Transferred from equity to statement of | 14 | -994 | -711 | | income | | | | -------------------------------------------------------------------------------- | Defined benefit plan actuarial gains | -22 | -17 | -99 | | (losses) | | | | -------------------------------------------------------------------------------- | Income tax on income and expense | 151 | -507 | -547 | | recognised directly in equity | | | | -------------------------------------------------------------------------------- | Income and expense recognised directly | -423 | 1 279 | 815 | | in equity | | | | -------------------------------------------------------------------------------- | Profit for the period | 231 | -285 | -1 783 | -------------------------------------------------------------------------------- | Total recognised income and expense for | -192 | 994 | -968 | | the period | | | | -------------------------------------------------------------------------------- According to IAS 1.96 standard the income and expense recognised in equity are stated in the consolidated statement of income. The above calculation replaces the statement of changes in shareholder's equity. CASH FLOW STATEMENT -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operations | | | | -------------------------------------------------------------------------------- | Operating profit | 1 250 | 584 | 1 190 | -------------------------------------------------------------------------------- | Total adjustments | 3 469 | 3 673 | 14 855 | -------------------------------------------------------------------------------- | Cash flow before change in working | 4 719 | 4 257 | 16 045 | | capital | | | | -------------------------------------------------------------------------------- | Change in working capital | -1 469 | 969 | 1 978 | -------------------------------------------------------------------------------- | Financial items | -583 | -452 | -4 835 | -------------------------------------------------------------------------------- | Taxes paid | -331 | -225 | -605 | -------------------------------------------------------------------------------- | Cash flow from operations before | 2 336 | 4 549 | 12 583 | | interest-bearing receivables | | | | -------------------------------------------------------------------------------- | Change in interest-bearing receivables | -3 536 | -937 | -100 | -------------------------------------------------------------------------------- | Cash flow from operations | -1 200 | 3 612 | 12 483 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | | | | -------------------------------------------------------------------------------- | Investments in tangible and intangible | -3 421 | -944 | -3 135 | | assets | | | | -------------------------------------------------------------------------------- | Proceeds from disposal of fixed assets | 898 | 287 | 666 | | and other proceeds | | | | -------------------------------------------------------------------------------- | Cash flow from investing activities | -2 523 | -657 | -2 469 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financing | | | | -------------------------------------------------------------------------------- | Repurchase of own shares | | | -157 | -------------------------------------------------------------------------------- | Non-current loans drawn | | -2 128 | 5 000 | -------------------------------------------------------------------------------- | Repayments of non-current loans | -316 | | -10 792 | -------------------------------------------------------------------------------- | Capital loans | | | -2 000 | -------------------------------------------------------------------------------- | Change in current loans | 3 118 | -991 | -2 015 | -------------------------------------------------------------------------------- | Cash flow from financing | 2 802 | -3 119 | -9 964 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and cash equivalents | -922 | -164 | 51 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES | 3/2007 | 3/2006 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings/share, EUR | 0.01 | -0.01 | -0.08 | -------------------------------------------------------------------------------- | Equity/share, EUR | 2.33 | 2.49 | 2.40 | -------------------------------------------------------------------------------- | Cash flow from operations/share, EUR | -0.05 | 0.15 | 0.53 | -------------------------------------------------------------------------------- | Cash flow from operations before | 0.10 | 0.19 | 0.53 | | interest-bearing receivables/share, EUR | | | | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 1.7 | -2.0 | -3.1 | -------------------------------------------------------------------------------- | Return on invested capital (ROI), % | 3.5 | 1.7 | 0.9 | -------------------------------------------------------------------------------- | Equity ratio, % | 31.3 | 32.2 | 32.3 | -------------------------------------------------------------------------------- | Gearing, % | 159.1 | 159.8 | 154.4 | -------------------------------------------------------------------------------- | Gross investments, EUR 1 000 | 2 283 | 835 | 4 337 | -------------------------------------------------------------------------------- | Depreciation and impairment losses, EUR | 3 560 | 3 700 | 14 694 | | 1 000 | | | | -------------------------------------------------------------------------------- SEGMENT REPORTING WIPES AND NONWOVENS -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | Change % | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | | | | | -------------------------------------------------------------------------------- | - Wet Wipes | 17 997 | 16 813 | 7.0 | 69 299 | -------------------------------------------------------------------------------- | - Nonwovens | 17 901 | 16 922 | 5.8 | 67 296 | -------------------------------------------------------------------------------- | - eliminations | -1 354 | -2 991 | -54.7 | -9 687 | -------------------------------------------------------------------------------- | Total | 34 544 | 30 744 | 12.4 | 126 908 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 587 | -355 | | -149 | -------------------------------------------------------------------------------- | % of net sales | 1.7 | -1.2 | | -0.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | 117 020 | 120 325 | | 116 435 | -------------------------------------------------------------------------------- | Liabilities | 12 188 | 11 448 | | 13 943 | -------------------------------------------------------------------------------- | Net assets | 104 832 | 108 877 | | 102 492 | -------------------------------------------------------------------------------- | Investments | 1 140 | 580 | | 2 150 | -------------------------------------------------------------------------------- | Depreciation and impairment | 2 152 | 2 225 | | 8 768 | | losses | | | | | -------------------------------------------------------------------------------- | Average personnel | 467 | 445 | | 455 | -------------------------------------------------------------------------------- FLEXIBLE PACKAGING -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | Change % | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 19 865 | 18 596 | 6.8 | 75 987 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 952 | 991 | | 1 958 | -------------------------------------------------------------------------------- | % of net sales | 4.8 | 5.3 | | 2.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | 56 032 | 56 623 | | 55 127 | -------------------------------------------------------------------------------- | Liabilities | 7 870 | 7 624 | | 8 313 | -------------------------------------------------------------------------------- | Net assets | 48 162 | 48 999 | | 46 814 | -------------------------------------------------------------------------------- | Investments | 1 143 | 254 | | 2 122 | -------------------------------------------------------------------------------- | Depreciation and impairment | 1 395 | 1 462 | | 5 873 | | losses | | | | | -------------------------------------------------------------------------------- | Average personnel | 586 | 596 | | 593 | -------------------------------------------------------------------------------- CONSOLIDATION ITEMS -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | Change % | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | -110 | -38 | | -268 | -------------------------------------------------------------------------------- | Operating profit | -289 | -52 | | -619 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | 3 051 | 5 942 | | 4 294 | -------------------------------------------------------------------------------- | Liabilities | 99 463 | 104 879 | | 96 857 | -------------------------------------------------------------------------------- | Investments | | 1 | | 65 | -------------------------------------------------------------------------------- | Depreciation and impairment | 13 | 13 | | 53 | | losses | | | | | -------------------------------------------------------------------------------- | Average personnel | 12 | 10 | | 10 | -------------------------------------------------------------------------------- NET SALES BY MARKET AREA -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007 | 1-3/2006 | 1-12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finland | 8 239 | 8 169 | 33 208 | -------------------------------------------------------------------------------- | Scandinavia | 5 747 | 5 301 | 21 539 | -------------------------------------------------------------------------------- | The Netherlands | 4 452 | 6 743 | 40 348 | -------------------------------------------------------------------------------- | Other Europe | 25 963 | 23 400 | 82 421 | -------------------------------------------------------------------------------- | Other Countries | 9 898 | 5 689 | 25 111 | -------------------------------------------------------------------------------- | Net sales, total | 54 299 | 49 302 | 202 627 | -------------------------------------------------------------------------------- QUARTERLY FIGURES -------------------------------------------------------------------------------- | EUR 1 000 | II/2006 | III/2006 | IV/2006 | I/2007 | II/2006- | | | | | | | I/2007 | -------------------------------------------------------------------------------- | NET SALES | | | | | | -------------------------------------------------------------------------------- | Wipes and Nonwovens | | | | | | -------------------------------------------------------------------------------- | - Wet Wipes | 16 773 | 17 826 | 17 887 | 17 997 | 70 483 | -------------------------------------------------------------------------------- | - Nonwovens | 15 281 | 17 031 | 18 062 | 17 901 | 68 275 | -------------------------------------------------------------------------------- | - eliminations | -2 824 | -2 034 | -1 838 | -1 354 | -8 050 | -------------------------------------------------------------------------------- | Total | 29 230 | 32 823 | 34 111 | 34 544 | 130 708 | -------------------------------------------------------------------------------- | Flexible Packaging | 18 491 | 18 768 | 20 132 | 19 865 | 77 256 | -------------------------------------------------------------------------------- | Consolidation items | -65 | -150 | -15 | -110 | -340 | | and eliminations | | | | | | -------------------------------------------------------------------------------- | Net sales, total | 47 656 | 51 441 | 54 228 | 54 299 | 207 624 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT | | | | | | -------------------------------------------------------------------------------- | Wipes and Nonwovens | -452 | -34 | 692 | 587 | 793 | -------------------------------------------------------------------------------- | % of net sales | -1.5 | -0.1 | 2.0 | 1.7 | 0.6 | -------------------------------------------------------------------------------- | Flexible Packaging | 362 | 475 | 130 | 952 | 1 919 | -------------------------------------------------------------------------------- | % of net sales | 2.0 | 2.5 | 0.6 | 4.8 | 2.5 | -------------------------------------------------------------------------------- | Consolidation items | -402 | -124 | -41 | -289 | -856 | | and eliminations | | | | | | -------------------------------------------------------------------------------- | Operating profit, | -492 | 317 | 781 | 1 250 | 1 856 | | total | | | | | | -------------------------------------------------------------------------------- | % of net sales | -1.0 | 0.6 | 1.4 | 2.3 | 0.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET FINANCIAL | -966 | -969 | -1 065 | -939 | -3 939 | | EXPENSES | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT BEFORE | -1 458 | -652 | -284 | 311 | -2 083 | | INCOME TAXES | | | | | | -------------------------------------------------------------------------------- TAXES FOR THE PERIOD UNDER REVIEW Taxes for the period under review are calculated on the basis of the Group's tax rate for the whole year, which is estimated to be 25 per cent in 2007. Taxes for the corresponding period in 2006 were 17 per cent on loss before taxes due to non-deductible expenses. SHARE CAPITAL The registered number of issued shares of Suominen totals 23,720,112 shares or EUR 11,860,056. On 31 March 2007, the Company held 51,121 of its own shares. There were no changes in share capital during the period under review. A dividend of EUR 0.06 per share, which totals to EUR 1,420,139.46, was paid on 12 April 2007. Unpaid dividend is booked to the balance sheet as a liability. INFORMATION ON RELATED PARTIES Suominen has related party relationships with the members of the Board of Directors, and the President and CEO of the Parent Company and the members of the Corporate Executive Team. The Company has no investments in associated companies. Salaries paid to the related parties amounted to EUR 240 thousand. MOVEMENTS IN BORROWINGS -------------------------------------------------------------------------------- | 1 000 e | 1-3/2007 | 1-3/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total borrowings on 1 January | 89 335 | 99 142 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current loans from financial institutions on 1 | 8 000 | | | January | | | -------------------------------------------------------------------------------- | Change in current loans from financial institutions | -8 000 | | -------------------------------------------------------------------------------- | Current loans from financial institutions on 31 | 0 | | | March | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Commercial papers on 1 January | 5 402 | 15 417 | -------------------------------------------------------------------------------- | Change in commercial papers | 11 116 | -991 | -------------------------------------------------------------------------------- | Commercial papers on 31 March | 16 518 | 14 426 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current loans on 1 January | 71 993 | 77 725 | -------------------------------------------------------------------------------- | Change in non-current loans | -316 | -2 128 | -------------------------------------------------------------------------------- | Non-current loans on 31 March | 71 617 | 75 597 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital loans on 1 January and 31 March | 4 000 | 6 000 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total borrowings on 31 March | 92 135 | 96 023 | -------------------------------------------------------------------------------- CHANGES IN FIXED ASSETS -------------------------------------------------------------------------------- | EUR 1 000 | 1-3/2007| |1-3/2006 | |1-12/2006 | | | | | | | | | -------------------------------------------------------------------------------- | | Tangible| Intan- | Tangible| Intan- | Tangible | Intan- | | | | gible | | gible | | gible | -------------------------------------------------------------------------------- | Book value at | 77 168 | 944 | 88 129 | 1 022 | 88 129 | 1 022 | | the beginning of | | | | | | | | the period | | | | | | | -------------------------------------------------------------------------------- | Investments | 2 250 | 33 | 788 | 47 | 4 108 | 129 | -------------------------------------------------------------------------------- | Decreases | -762 | -16 | -302 | | - 672 | | -------------------------------------------------------------------------------- | Depreciation and | -3 509 | -51 | -3 652 | -48 | -14 505 | -189 | | impairments | | | | | | | -------------------------------------------------------------------------------- | Translation | -286 | 35 | -364 | 6 | 108 | -18 | | differences and | | | | | | | | other changes | | | | | | | -------------------------------------------------------------------------------- | Book value at | 74 861 | 945 | 84 599 | 1 027 | 77 168 | 944 | | the end of the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | EUR 1 000 | 3/2007 | 3/2006 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FOR OWN DEBT | | | | -------------------------------------------------------------------------------- | Real estate mortgages | 5 046 | | 5 046 | -------------------------------------------------------------------------------- | Corporate mortgages | 1 177 | 1 177 | 1 177 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OTHER OWN COMMITMENTS | | | | -------------------------------------------------------------------------------- | Leasing payments and commitments | 8 500 | 2 062 | 8 555 | -------------------------------------------------------------------------------- | Rent commitments | 14 984 | 12 404 | 15 767 | -------------------------------------------------------------------------------- | Guarantee commitment for financial | 1 621 | 1 702 | 1 642 | | lease of discontinued operations | | | | -------------------------------------------------------------------------------- NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS -------------------------------------------------------------------------------- | EUR 1 000 | 3/2007 | 3/2006 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENCY DERIVATIVES | | | | -------------------------------------------------------------------------------- | Nominal value | 9 563 | 11 778 | 9 750 | -------------------------------------------------------------------------------- | Fair value | 56 | 36 | -5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INTEREST RATE DERIVATIVES | | | | -------------------------------------------------------------------------------- | Nominal value | 60 633 | 67 600 | 60 633 | -------------------------------------------------------------------------------- | Fair value | 1 120 | 533 | 1 075 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ELECTRICITY DERIVATIVES | | | | -------------------------------------------------------------------------------- | Nominal value | 5 551 | 5 894 | 5 638 | -------------------------------------------------------------------------------- | Fair value | 407 | 2 280 | 791 | -------------------------------------------------------------------------------- Helsinki, 25 April 2007 SUOMINEN CORPORATION Board of Directors Additional information: Mr. Kalle Tanhuanpää, President and CEO, tel. +358 (0)10 214 300.interim-2007-04-25.pdf
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