RIGHTS OFFERING STRENGTHENED THE BALANCE SHEET, RESULT NEGATIVE
SUOMINEN CORPORATION INTERIM REPORT 19 JULY 2010 AT 8.30 A.M.
INTERIM REPORT 1 JANUARY - 30 JUNE 2010
RIGHTS OFFERING STRENGTHENED THE BALANCE SHEET, RESULT NEGATIVE
--------------------------------------------------------------------------------
| KEY FIGURES | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 |1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, EUR | 44.1 | 43.4 | 84.8 | 90.3 | 179.4 |
| million | | | | | |
--------------------------------------------------------------------------------
| Operating profit, EUR | 0.0 | 1.6 | -0.3 | 5.1 | 6.7 |
| million | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the | -0.8 | 0.1 | -1.9 | 1.6 | 0.9 |
| period, EUR million | | | | | |
--------------------------------------------------------------------------------
| Earnings/share, EUR | -0.02 | 0.00 | -0.05 | 0.04 | 0.02 |
--------------------------------------------------------------------------------
| Cash flow from | -0.08 | 0.17 | -0.11 | 0.57 | 0.74 |
| operations/share, EUR | | | | | |
--------------------------------------------------------------------------------
In June, Suominen directed a rights offering to its existing shareholders, which
was oversubscribed by 39 per cent. The net proceeds of EUR 9.8 million from the
share offer strengthened the company's balance sheet.
Outlook: Delivery volumes are expected to grow during the latter half of 2010 in
comparison with the first part of the year, but the entire year's sales volumes
are nevertheless not expected to reach the previous year's level. Operating
profit for 2010 is expected to be lower than in 2009.
GROUP FINANCIAL RESULTS
Suominen Corporation generated net sales of EUR 44.1 million (43.4) in the
second quarter. Operating profit was EUR 0.0 million (1.6), profit before taxes
EUR -1.0 million (0.0) and profit after taxes EUR -0.8 million (0.1).
Net sales for the first two quarters totalled EUR 84.8 million (90.3). Operating
profit was EUR -0.3 million (5.1), profit before taxes EUR -2.5 million (2.0)
and profit after taxes EUR -1.9 million (1.6).
Suominen's net sales for the first six months in 2010 declined by 6 per cent
compared to the corresponding period in 2009. Reasons behind the decrease were
the decline in the prices of wet wipes and in the delivery volumes of nonwovens.
Because lower sales prices and decreased delivery volumes could not be
compensated for through cost savings, the result was loss-making. Raw material
prices continued to rise during the first part of the year. As there is a delay
in passing cost increases through to sales prices, margins weakened. The stock
of finished products was increased for the summer period.
Investments still remained on a low level.
Cost-saving and operational enhancement programme
Costs were cut in the amount of EUR 1.9 million through Suominen's Stairs to Top
operational enhancement programme. The most significant single measure taken was
the transfer of Sweden's flexible packaging production to Poland. Other cost
savings resulted from optimisation of material use, reduction in number of
personnel and the effects of earlier investments to boost efficiency.
Financing
Repayments of interest-bearing liabilities were EUR 7.0 million. Proceeds from
the share issue are comprised in cash at bank and in hand on 30 June 2010. Net
liabilities include capital loans of EUR 6.0 million (8.0). The ratio of net
senior debt to EBITDA in the credit agreements of Suominen was 4.6, which is
also the covenant maximum. Net financial expenses were EUR 2.1 million (3.1) or
2.5 per cent (3.5) of net sales. A total of EUR 6.4 million was tied up in the
working capital. Stock increased by EUR 6 million, and over one-third of the
increase was due to changes in raw material prices. A total of EUR 10.9 million
of trade receivables was sold to the bank (8.1). The equity ratio was 32.0 per
cent (29.0). When the capital loans are included in shareholders' equity, the
equity ratio was 36.3 per cent (35.4) and the ratio of liabilities to
shareholders' equity 102.0 per cent (122.6). Cash flow from operations was EUR
-0.11 per share (0.57).
Investments
The company's gross investments in production totalled EUR 3.5 million (1.4).
Planned depreciation amounted to EUR 4.8 million (5.1). Codi Wipes accounted for
EUR 0.3 million (0.2), Nonwovens EUR 1.2 million (0.4) and Flexibles EUR 2.0
million (0.7) of total investments. Investments were efficiency-enhancement and
maintenance investments.
SEGMENT RESULTS
In the first two quarters, net sales of the Wiping business area totalled EUR
51.7 million and declined by 11 per cent on the previous year. The business
area's operating profit was EUR -0.9 million (2.7).
Net sales of Codi Wipes, at EUR 28.7 million, declined by 10 per cent on the
previous year. Sales of baby wipes and moist toilet wipes decreased while sales
of personal care wipes were somewhat higher than a year earlier. Average sales
prices settled at the level to which they had fallen at the beginning of the
year. The fall early in 2010 resulted from declining price terms in long-term
sales contracts and lower market prices caused by tighter competition. The
business unit's personnel costs decreased.
Net sales of Nonwovens decreased by 16 per cent to EUR 26.0 million. The
corresponding figure includes sales of thermobonded hygiene products, the sales
of which mainly discontinued during 2009. Delivery volumes of hydroentangled
wiping materials fell, while the sales of materials used in health care remained
at the previous year's level. Sales in the US markets declined clearly. During
the period under review, unit's nonwovens production was halted for 22 days, and
during this period temporary lay-offs affecting a total of 74 people were
implemented. Prices for raw materials and energy rose over the previous year.
Net sales of Flexibles totalled EUR 33.5 million (33.3) in the first two
quarters. Operating profit was EUR 0.7 million (2.6). Sales of hygiene packaging
and food packaging were on par with the previous year. Sales of retail packaging
were somewhat lower than a year earlier. Sales of security and system packaging
rose slightly. Deliveries to Russia and Poland increased.
The increase in the prices of plastic-based raw materials, which continued
throughout the six-month period, caused a clear increase in costs in the result
for Flexibles, while during the previous year's corresponding period, the
business area benefited from a decrease in raw material prices. The modern
printing machine transferred from the Swedish plant to the Polish plant operated
at a normal output level during the second quarter. Customers who were
previously served by the Swedish plant are now served by units in Poland and
Finland. The business area's personnel costs decreased.
GENERAL MEETINGS OF SHAREHOLDERS
The Extraordinary General meeting of Shareholders was held on 1 June 2010. The
Extraordinary General Meeting authorised the Board of Directors to decide on the
issuance of a maximum of 30,000,000 new shares in one or more share issues
against payment.
SHARE CAPITAL AND SHARES
Share capital and share issue
On 30 June 2010, the registered number of issued shares of Suominen totalled
23,720,112 shares. Fully paid share capital was EUR 11,860,056.
Based on the authorisation given by the Extraordinary General Meeting held on 1
June 2010, the company's Board of Directors decided to raise the share capital
through a share issue implemented from 9 to 23 June 2010. On 30 June 2010, the
company announced that the final outcome of the rights offering showed that a
total of 23,108,629 shares, representing 97.6 per cent of the total number of
shares offered, had been subscribed for with subscription rights. The remaining
566,273 shares had been subscribed for without subscription rights. The
subscription price was EUR 0.43 per share.
Trading in interim shares was commenced on 24 June 2010. New shares were
registered with the Trade Register on 1 July 2010, after which the interim
shares were combined with Suominen's existing shares. Trading in the new shares
alongside the existing shares commenced on NASDAQ OMX Helsinki Ltd on 2 July
2010. The new shares include the right to dividends and other distributions as
well as other shareholder rights as from the registration date of 1 July 2010.
Following the registration on 1 July 2010, the total number of Suominen's shares
is 47,395,014 shares.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 30 June 2010 was 2,575,585 shares including also interim shares.
The trading price of the company's ordinary shares fluctuated between EUR 1.41
to EUR 1.74 before the new rights issue on 4 June 2010 and from EUR 0.74 to EUR
1.39 thereafter. The final trading price was EUR 0.75. The trading price of the
interim shares fluctuated between EUR 0.71 to EUR 0.75. The final trading price
was EUR 0.73. The two shares combined gave the company a market capitalisation
of EUR 35.0 million on 30 June 2010.
The highest price for subscription rights on NASDAQ OMX Helsinki was EUR 0.50,
and the lowest price was EUR 0.23. The final price was EUR 0.24. The total
number of subscription rights traded was 2.1 million, with a total value of EUR
0.6 million.
The company's own shares
On 1 January 2010, the company held 682 of its own shares, accounting for 0.0
per cent of the share capital and votes.
The Annual General Meeting of Shareholders held in 2009 authorised the Board of
Directors to decide on the acquisition of a maximum of 200,000 of the company's
own shares. The authorisation was still valid and based on it, the company has
repurchased 76,405 of its own shares between 1 January and 30 June 2010. The
Meeting also authorised the Board of Directors to decide on the conveyance of
the company's own shares, and authorisation to convey 200,862 shares was still
valid. Within the authorisation the company has conveyed 31,877 of its own
shares as emoluments to the Board of Directors in the period under review. The
price of the conveyed shares was EUR 1.60 per share.
The Annual General Meeting of Shareholders held on 23 March 2010 authorised the
Board of Directors to decide on the acquisition of a maximum of 200,000 of the
company's own shares. The Meeting also authorised the Board of Directors to
decide on the conveyance of a maximum of 200,682 of the company's own shares.
The board of Directors did not exercise its authorities to convey the company's
own shares during the period under review.
On 30 June 2010, Suominen Corporation held a total of 45,210 of its own shares,
accounting for 0.2 per cent of the share capital and votes.
Stock options
Suominen has stock option plans 2006, 2007 and 2009. The Board of Directors has
decided to amend the terms and conditions of the option plans so that an option
holder has the right to the same proportion of shares in the company as before
the rights offering, i.e. one option right will entitle a holder to subscribe to
two shares. The subscription prices per share were also adjusted.
Stock options marked with the symbol 2006A have expired and stock options marked
with the symbol 2006B have been returned to the company. According to the 2006C
stock option plan, a total of 100,000 stock options have been issued having an
original subscription price of EUR 1.66 per share. The new number of shares that
can be subscribed under the stock option plans is 200,000, and the new
subscription price is EUR 1.05. The subscription period for the 2006C stock
options is from 2 May 2010 until 30 October 2011.
A total of 85,000 stock options marked with the symbol 2007A have been issued
having an original subscription price of EUR 3.44 per share. The new number of
shares that can be subscribed under the stock option plans is 170,000, and the
new subscription price is EUR 1.94. A total of 90,000 stock options marked with
the symbol 2007B have been issued having an original subscription price of EUR
1.66 per share. The new number of shares that can be subscribed under the stock
option plans is 180,000, and the new subscription price is EUR 1.05. The
subscription period for the 2007A stock options is from 2 May 2009 until 30
October 2010 and for 2007B stock options from 2 May 2010 until 30 October 2011.
A total of 150,000 stock options marked with the symbol 2009A have been issued
having an original subscription price of EUR 1.46 per share. The new number of
shares that can be subscribed under the stock option plans is 300,000, and the
new subscription price is EUR 0.95. The subscription period for the 2009A stock
options is from 2 May 2011 to 30 October 2012.
As the registered number of Suominen's issued shares totals 47,395,014 on 1 July
2010, the number of shares may rise to a maximum of 48,245,014 after stock
option subscriptions.
Other authorisation for the board of directors
The Board of Directors still has an authorisation to issue 300,000 more stock
options in accordance with the 2009 stock option plan which would entitle
holders to subscribe to 600,000 Suominen shares. In addition, the Board of
Directors also has authorisation to issue 6,325,098 additional new shares as
decided by the Extraordinary General Meeting held on 1 June 2010. The Board of
Directors is not otherwise authorised to issue special rights entitling to
shares, option rights and/or convertible bonds.
NEAR-FUTURE RISKS AND UNCERTAINTIES
The estimate concerning the development of Suominen's net sales is based in part
on forecasts and action plans provided by the Group's customers. Changes in
these forecasts and plans resulting from changes in the market situation or
changes in customers' inventory levels could affect Suominen's net sales. Due to
the uncertain global economic situation, the forecasts are vulnerable to a
significant amount of uncertainty.
Nonwovens and Flexibles purchase oil-based raw materials to the value of some
EUR 40 million annually. In addition, significant amounts of viscose, printing
inks, and solvents are also purchased. Rapid fluctuations in the world market
prices of raw materials affect Suominen's profitability.
Suominen Corporation does not have any competitors with a fully similar product
offering. However, the company has numerous regional, national or international
competitors in its different product groups. The competition is tight as there
is production oversupply in most product groups. If Suominen Corporation is not
able to compete with an attractive product offering, it may lose some of its
market share. The competition may lead to increased pricing pressure on the
company's products.
Suominen's cost-saving and operational enhancement efforts are focused on areas
such as improving yield, increasing machine speeds, and reducing changeover
time. The benefits of these efforts will be most evident if production volumes
will increase. Delays in the implementation of measures or their failure would
have a negative impact on the company's result.
The financial covenants of Suominen's credit agreements provide a maximum level
for the ratio of net debts to operating profit. At the end of June, the ratio of
net senior debt to EBITDA was at the covenant maximum level.The continuing weak
level of the income from operations may result in a situation where the company
does not meet the financial conditions. In this case, the banks have the right
to declare the credits due and payable and renegotiate the terms.
The sensitivity of Suominen's group goodwill, and possible changes in the
general assumptions are described in the notes to the financial statements for
2009. Suominen's business risks are described in the report of the Board of
Directors for 2009, and in the Finnish offering memorandum dated on 4 June 2010.
OUTLOOK
Demand for Suominen's products is evaluated on the basis of customer contracts
and use forecast provided by customers.
Demand for Suominen's products and deliveries to customers at the beginning of
2010 were below the level of the corresponding period in 2009. Delivery volumes
are expected to grow during the latter half of 2010 in comparison with the first
part of the year. Due to the low number of deliveries in early 2010, the entire
year's sales volumes are not expected to reach the previous year's level.
Suominen's raw material and energy costs have clearly increased during the first
part of the year. These costs are expected to level off during the latter part
of the year. Most of the savings generated through rationalisation and other
cost-saving measures decided on earlier will materialise during the latter half
of the year. Operating profit is 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.
EVENTS AFTER THE REPORTING PERIOD
Following the registration on 1 July 2010, the registered number of issued
shares of the company totals 47,395,014.
On 1 July 2010, the company received a notification from Mr. Mikko Maijala that
the combined holding of his own and Maijala Investment Oy, in which he has a
controlling power, in Suominen Corporation corresponds to 5.1 per cent of the
company's share capital and voting rights.
Interim shares were combined with Suominen's existing shares and trading in the
new shares alongside the existing shares commenced on NASDAQ OMX Helsinki Ltd on
2 July 2010.
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY - 30 JUNE 2010
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 2009, and this interim
report should be read parallel to the financial statements for 2009. Changes to
published accounting standards and interpretations, together with the new
accounting standards that came into force on 1 January 2010, are presented in
the financial statements for 2009. All calculations in this interim report have
been prepared in compliance with revised IAS 1, ‘Presentation of Financial
Statements'. The revised standard is aimed at improving users' ability to
analyse and compare the information given in financial statements by separating
changes in equity of an entity arising from transactions with owners from other
changes in equity. Non-owner changes inequity will be presented in the statement
of comprehensive income.
The figures in this interim report have not been audited.
BALANCE SHEET
--------------------------------------------------------------------------------
| EUR 1 000 | 6/2010 | 6/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 23 404 | 23 404 | 23 404 |
--------------------------------------------------------------------------------
| Intangible assets | 746 | 763 | 795 |
--------------------------------------------------------------------------------
| Tangible non-current assets | 55 376 | 57 927 | 57 044 |
--------------------------------------------------------------------------------
| Available-for-sale financial | 212 | 227 | 212 |
| assets | | | |
--------------------------------------------------------------------------------
| Held-to-maturity investments | 288 | 225 | 225 |
--------------------------------------------------------------------------------
| Deferred tax assets | 910 | 1 273 | 921 |
--------------------------------------------------------------------------------
| Non-current assets, total | 80 936 | 83 819 | 82 601 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 28 600 | 22 768 | 22 598 |
--------------------------------------------------------------------------------
| Trade receivables | 14 228 | 14 807 | 11 514 |
--------------------------------------------------------------------------------
| Other current receivables | 2 895 | 2 823 | 4 416 |
--------------------------------------------------------------------------------
| Income tax receivables | 926 | 842 | 112 |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 10 927 | 2 442 | 1 589 |
--------------------------------------------------------------------------------
| Current assets, total | 57 576 | 43 682 | 40 229 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets, total | 138 512 | 127 501 | 122 830 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to owners of | | | |
| the parent | | | |
--------------------------------------------------------------------------------
| Share capital | 11 860 | 11 860 | 11 860 |
--------------------------------------------------------------------------------
| Share premium account | 24 681 | 24 681 | 24 681 |
--------------------------------------------------------------------------------
| Share issue | 9 757 | | |
--------------------------------------------------------------------------------
| Fair value and other reserves | -228 | -710 | -402 |
--------------------------------------------------------------------------------
| Translation differences | -49 | -938 | -117 |
--------------------------------------------------------------------------------
| Other shareholders' equity | -1 677 | 1 349 | 667 |
--------------------------------------------------------------------------------
| Shareholders' equity, total | 44 344 | 36 242 | 36 689 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 3 069 | 3 535 | 3 065 |
--------------------------------------------------------------------------------
| Provisions | 280 | | 280 |
--------------------------------------------------------------------------------
| Capital loans | 4 000 | 6 000 | 6 000 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 45 325 | 47 050 | 43 390 |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 52 674 | 56 585 | 52 735 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 16 960 | 9 686 | 9 471 |
--------------------------------------------------------------------------------
| Capital loans | 2 000 | 2 000 | 2 000 |
--------------------------------------------------------------------------------
| Income tax liabilities | 341 | 653 | 39 |
--------------------------------------------------------------------------------
| Trade payables and other current | 22 193 | 22 335 | 21 896 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Current liabilities, total | 41 494 | 34 674 | 33 406 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities, total | 94 168 | 91 259 | 86 141 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and | 138 512 | 127 501 | 122 830 |
| liabilities, total | | | |
--------------------------------------------------------------------------------
STATEMENT OF INCOME
--------------------------------------------------------------------------------
| EUR 1 000 | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 |1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 44 148 | 43 388 | 84 764 | 90 332 | 179 354 |
--------------------------------------------------------------------------------
| Cost of goods sold | -41 499 | -38 081 | -79 416 | -78 710 | -158 969 |
--------------------------------------------------------------------------------
| GROSS PROFIT | 2 649 | 5 307 | 5 348 | 11 622 | 20 385 |
--------------------------------------------------------------------------------
| Other operating | 403 | 80 | 464 | 378 | 530 |
| income | | | | | |
--------------------------------------------------------------------------------
| Sales and marketing | -899 | -907 | -1 814 | -1 710 | -3 715 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Research and | -463 | -549 | -971 | -999 | -2 297 |
| development | | | | | |
--------------------------------------------------------------------------------
| Administration | -1 485 | -2 048 | -3 128 | -3 748 | -7 144 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Other operating | -222 | -304 | -241 | -414 | -1 053 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | -17 | 1 579 | -342 | 5 129 | 6 706 |
--------------------------------------------------------------------------------
| Financial income and | -988 | -1 589 | -2 126 | -3 128 | -5 701 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE INCOME | -1 005 | -10 | -2 468 | 2 001 | 1 005 |
| TAXES | | | | | |
--------------------------------------------------------------------------------
| Income taxes | 245 | 110 | 587 | -428 | -145 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE | -760 | 100 | -1 881 | 1 573 | 860 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share, EUR | -0.02 | 0.00 | -0.05 | 0.04 | 0.02 |
--------------------------------------------------------------------------------
Earnings per share is presented by taking into account the new shares,
23,674,902, given in the share issue. Share issue adjustment has also an effect
on comparison period´s EPS.
STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
| 1 000 e | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 |1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for the | -760 | 100 | -1 881 | 1 573 | 860 |
| period | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Total exchange | -804 | 601 | 92 | -775 | 335 |
| differences on | | | | | |
| foreign operations | | | | | |
--------------------------------------------------------------------------------
| Fair value changes of | 318 | 381 | 332 | -370 | 48 |
| cash flow hedges | | | | | |
--------------------------------------------------------------------------------
| Fair value changes of | | 73 | | 73 | 73 |
| available-for-sale | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Other | -8 | -9 | -2 | -5 | -9 |
| reclassifications | | | | | |
--------------------------------------------------------------------------------
| Income tax on other | 127 | -274 | -110 | 279 | -119 |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Total other | -367 | 772 | 312 | -798 | 328 |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | -1 127 | 872 | -1 569 | 775 | 1 188 |
| income for the period | | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR 1 000 | Share | Share | Inves | Own | Transl | Fair | Retain | Total |
| | capit | premi | ted | shar | ation | value | ed | |
| | al | um | non-r | es | differ | reserv | earnin | |
| | | accou | estri | | ences | es | gs | |
| | | nt | cted | | | | | |
| | | | equit | | | | | |
| | | | y | | | | | |
| | | | fund | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total |11 860 |24 681 | 0 | -1 | -117 | -401 | 667 | 36 689 |
| equity at | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2010 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/lo | | | | | | | -1 881 | -1 881 |
| ss for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | 68 | 246 | -2 | 312 |
| comprehen | | | | | | | | |
| sive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | | 15 | 15 |
| ed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | 9 757 | | | | | 9 757 |
| issue | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | | -474 | -474 |
--------------------------------------------------------------------------------
| Repurchas | | | | -123 | | | | -123 |
| e of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Conveyanc | | | | 51 | | | -1 | 50 |
| e of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Total |11 860 |24 681 | 9 757 | -73 | -49 | -155 | -1 676 | 44 345 |
| equity at | | | | | | | | |
| 30 June | | | | | | | | |
| 2010 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1 000 | Share | Share | Inves | Own | Transl | Fair | Retain | Total |
| | capit | premi | ted | shar | ation | value | ed | |
| | al | um | non-r | es | differ | reserv | earnin | |
| | | accou | estri | | ences | es | gs | |
| | | nt | cted | | | | | |
| | | | equit | | | | | |
| | | | y | | | | | |
| | | | fund | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total |11 860 |24 681 | 0 | -50 | -365 | -490 | -246 | 35 390 |
| equity at | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/lo | | | | | | | 1 573 | 1 573 |
| ss for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | -573 | -220 | -5 | -798 |
| comprehen | | | | | | | | |
| sive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | | 34 | 34 |
| ed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Conveyanc | | | | 49 | | | -6 | 43 |
| e of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Total |11 860 |24 681 | 0 | -1 | -938 | -710 | 1 350 | 36 242 |
| equity at | | | | | | | | |
| 30 June | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1 000 | Share | Share | Inves | Own | Transl | Fair | Retain | Total |
| | capit | premi | ted | shar | ation | value | ed | |
| | al | um | non-r | es | differ | reserv | earnin | |
| | | accou | estri | | ences | es | gs | |
| | | nt | cted | | | | | |
| | | | equit | | | | | |
| | | | y | | | | | |
| | | | fund | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total |11 860 |24 681 | 0 | -50 | -365 | -490 | -246 | 35 390 |
| equity at | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/lo | | | | | | | 860 | 860 |
| ss for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | 248 | 89 | -9 | 328 |
| comprehen | | | | | | | | |
| sive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | | 68 | 68 |
| ed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Conveyanc | | | | 49 | | | -6 | 43 |
| e of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Total |11 860 |24 681 | 0 | -1 | -117 | -401 | 667 | 36 689 |
| equity at | | | | | | | | |
| 31 Dec. | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operations | | | |
--------------------------------------------------------------------------------
| Operating profit | -342 | 5 129 | 6 706 |
--------------------------------------------------------------------------------
| Total adjustments | 4 761 | 5 501 | 10 367 |
--------------------------------------------------------------------------------
| Cash flow before change in working | 4 419 | 10 630 | 17 073 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in working capital | -6 379 | 13 108 | 15 234 |
--------------------------------------------------------------------------------
| Financial items | -2 150 | -3 041 | -5 263 |
--------------------------------------------------------------------------------
| Taxes paid | -20 | -52 | -251 |
--------------------------------------------------------------------------------
| Cash flow from operations | -4 130 | 20 645 | 26 793 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Investment payments | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -3 543 | -1 426 | -4 373 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of fixed | 349 | 211 | 388 |
| assets | | | |
| and other proceeds | | | |
--------------------------------------------------------------------------------
| Cash flow from investing | -3 194 | -1 215 | -3 985 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financing | | | |
--------------------------------------------------------------------------------
| Non-current loans drawn | 13 000 | 31 192 | 35 192 |
--------------------------------------------------------------------------------
| Repayments of non-current loans | -5 033 | -50 459 | -58 722 |
--------------------------------------------------------------------------------
| Change in commercial papers | 1 488 | | |
--------------------------------------------------------------------------------
| Repayments of capital loans | -2 000 | -2 000 | -2 000 |
--------------------------------------------------------------------------------
| Dividends paid | -474 | | |
--------------------------------------------------------------------------------
| Repurchase and conveyance of own | -73 | 44 | 44 |
| shares | | | |
--------------------------------------------------------------------------------
| Share issue | 9 757 | | |
--------------------------------------------------------------------------------
| Cash flow from financing | 16 665 | -21 223 | -25 486 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | 9 341 | -1 793 | -2 678 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 |1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, change, % | 1.8 | -21.4 | -6.2 | -17.6 | -16.4 |
| * | | | | | |
--------------------------------------------------------------------------------
| Gross profit, % ** | 6.0 | 12.2 | 6.3 | 12.9 | 11.4 |
--------------------------------------------------------------------------------
| Operating profit, % | 0.0 | 3.6 | -0.4 | 5.7 | 3.7 |
| ** | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -2.2 | -3.7 | -2.5 | -3.5 | -3.2 |
| expenses, % ** | | | | | |
--------------------------------------------------------------------------------
| Profit before income | -2.3 | 0.0 | -2.9 | 2.2 | 0.6 |
| taxes, % ** | | | | | |
--------------------------------------------------------------------------------
| Profit for the | -1.7 | 0.2 | -2.2 | 1.7 | 0.5 |
| period, % ** | | | | | |
--------------------------------------------------------------------------------
| Earnings/share, EUR | -0.02 | 0.00 | -0.05 | 0.04 | 0.02 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity/share, EUR | | | 1.22 | 1.00 | 1.01 |
--------------------------------------------------------------------------------
| Dividend/share, EUR | | | | | 0.02 |
--------------------------------------------------------------------------------
| Cash flow from | | | -0.11 | 0.57 | 0.74 |
| operations/share, EUR | | | | | |
--------------------------------------------------------------------------------
| Return on equity | | | -9.7 | 8.8 | 2.4 |
| (ROE), % | | | | | |
--------------------------------------------------------------------------------
| Return on invested | | | -0.6 | 9.4 | 6.4 |
| capital (ROI), % | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 32.0 | 29.0 | 29.9 |
--------------------------------------------------------------------------------
| Gearing, % | | | 129.3 | 171.7 | 161.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments, | | | 3 458 | 1 365 | 4 507 |
| EUR 1 000 | | | | | |
--------------------------------------------------------------------------------
| Depreciation, EUR 1 | | | 4 829 | 5 144 | 10 158 |
| 000 | | | | | |
--------------------------------------------------------------------------------
* Compared with the corresponding period of the previous year.
** As of net sales.
SEGMENT REPORTING
WIPING
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/2010 | 1-6/2009 | Change % | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | |
--------------------------------------------------------------------------------
| - Codi Wipes | 28 728 | 31 813 | -9.7 | 64 479 |
--------------------------------------------------------------------------------
| - Nonwovens | 25 968 | 30 769 | -15.6 | 56 905 |
--------------------------------------------------------------------------------
| - eliminations | -3 000 | -4 728 | -36.6 | -7 888 |
--------------------------------------------------------------------------------
| Total | 51 696 | 57 853 | -10.6 | 113 496 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -929 | 2 724 | | 4 299 |
--------------------------------------------------------------------------------
| % of net sales | -1.8 | 4.7 | | 3.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | 79 919 | 83 600 | | 78 991 |
--------------------------------------------------------------------------------
| Liabilities | 12 026 | 13 358 | | 13 349 |
--------------------------------------------------------------------------------
| Net assets | 67 893 | 70 242 | | 65 641 |
--------------------------------------------------------------------------------
| Investments | 1 440 | 634 | | 2 447 |
--------------------------------------------------------------------------------
| Depreciation | 3 256 | 3 481 | | 6 784 |
--------------------------------------------------------------------------------
| Average personnel | 377 | 392 | | 392 |
--------------------------------------------------------------------------------
FLEXIBLES
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/2010 | 1-6/2009 | Change % | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 33 502 | 33 018 | 1.5 | 66 894 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 738 | 2 640 | | 2 823 |
--------------------------------------------------------------------------------
| % of net sales | 2.2 | 8.0 | | 4.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | 47 872 | 42 854 | | 44 462 |
--------------------------------------------------------------------------------
| Liabilities | 12 549 | 8 393 | | 10 039 |
--------------------------------------------------------------------------------
| Net assets | 35 323 | 34 461 | | 34 423 |
--------------------------------------------------------------------------------
| Investments | 2 011 | 732 | | 2 059 |
--------------------------------------------------------------------------------
| Depreciation | 1 561 | 1 652 | | 3 349 |
--------------------------------------------------------------------------------
| Average personnel | 529 | 539 | | 541 |
--------------------------------------------------------------------------------
NON-ALLOCATED ITEMS
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | -434 | -539 | -1 036 |
--------------------------------------------------------------------------------
| Operating profit | -150 | -235 | -415 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | 10 721 | 1 047 | -623 |
--------------------------------------------------------------------------------
| Liabilities | 69 592 | 69 508 | 62 752 |
--------------------------------------------------------------------------------
| Investments | 7 | -1 | 1 |
--------------------------------------------------------------------------------
| Depreciation | 12 | 11 | 24 |
--------------------------------------------------------------------------------
| Average personnel | 11 | 11 | 11 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finland | 13 393 | 15 381 | 29 883 |
--------------------------------------------------------------------------------
| Scandinavia | 7 817 | 7 973 | 15 843 |
--------------------------------------------------------------------------------
| The Netherlands | 4 262 | 7 065 | 12 004 |
--------------------------------------------------------------------------------
| Other Europe | 53 705 | 51 077 | 106 220 |
--------------------------------------------------------------------------------
| Other countries | 5 587 | 8 837 | 15 404 |
--------------------------------------------------------------------------------
| Net sales, total | 84 764 | 90 332 | 179 354 |
--------------------------------------------------------------------------------
QUARTERLY FIGURES
--------------------------------------------------------------------------------
| EUR 1 000 |III/2009 | IV/2009 | I/2010 | II/2010 | III/2009 |
| | | | | | -I/2010 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | | | | | |
--------------------------------------------------------------------------------
| Wiping | | | | | |
--------------------------------------------------------------------------------
| - Codi Wipes | 15 843 | 16 824 | 13 884 | 14 844 | 61 395 |
--------------------------------------------------------------------------------
| - Nonwovens | 13 637 | 12 499 | 12 246 | 13 722 | 52 104 |
--------------------------------------------------------------------------------
| - eliminations | -1 567 | -1 592 | -1 667 | -1 333 | -6 160 |
--------------------------------------------------------------------------------
| Total | 27 913 | 27 730 | 24 462 | 27 234 | 107 339 |
--------------------------------------------------------------------------------
| Flexibles | 16 513 | 17 363 | 16 395 | 17 107 | 67 377 |
--------------------------------------------------------------------------------
| Non-allocated items | -259 | -238 | -241 | -193 | -930 |
--------------------------------------------------------------------------------
| Net sales, total | 44 167 | 44 855 | 40 616 | 44 148 | 173 786 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT | | | | | |
--------------------------------------------------------------------------------
| Wiping | 677 | 898 | -142 | -787 | 645 |
--------------------------------------------------------------------------------
| % of net sales | 2.4 | 3.2 | -0.6 | -2.9 | 0.6 |
--------------------------------------------------------------------------------
| Flexibles | 496 | 275 | -135 | 873 | 1 510 |
--------------------------------------------------------------------------------
| % of net sales | 3.0 | 1.6 | -0.8 | 5.1 | 2.2 |
--------------------------------------------------------------------------------
| Non-allocated items | -202 | 21 | -48 | -103 | -331 |
--------------------------------------------------------------------------------
| Operating profit | 972 | 1 195 | -325 | -17 | 1 824 |
| before non-recurring | | | | | |
| costs | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.2 | 2.7 | -0.8 | 0.0 | 1.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-recurring costs | | -589 | | | -589 |
--------------------------------------------------------------------------------
| Operating profit, | 972 | 606 | -325 | -17 | 1 235 |
| total | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.2 | 1.4 | -0.8 | 0.0 | 0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET FINANCIAL EXPENSES | -1 529 | -1 045 | -1 138 | -988 | -4 700 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PROFIT BEFORE INCOME | -557 | -439 | -1 463 | -1 005 | -3 465 |
| TAXES | | | | | |
--------------------------------------------------------------------------------
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is recognised based on the estimated average income tax rate
for the full financial year.
INFORMATION ON RELATED PARTIES
Suominen has related party relationships with the members of the Board of
Directors, 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 714 thousand, share-based payments EUR 15 thousand, unsecured
loans EUR 660 thousand, and interest payments EUR 102 thousand.
MOVEMENTS IN BORROWINGS
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/2010 | 1-6/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total borrowings on 1 January | 60 861 | 86 403 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Commercial papers on 1 January | | |
--------------------------------------------------------------------------------
| Change in commercial papers | 1 488 | |
--------------------------------------------------------------------------------
| Commercial papers on 30 June | 1 488 | 0 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Non-current loans on 1 January | 52 861 | 76 403 |
--------------------------------------------------------------------------------
| Change in non-current loans | 7 936 | -19 667 |
--------------------------------------------------------------------------------
| Non-current loans on 30 June | 60 797 | 56 736 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Capital loans on 1 January | 8 000 | 10 000 |
--------------------------------------------------------------------------------
| Change in capital loans | -2 000 | -2 000 |
--------------------------------------------------------------------------------
| Capital loans on 30 June | 6 000 | 8 000 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Total borrowings on 30 june | 68 285 | 64 736 |
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS
--------------------------------------------------------------------------------
| EUR 1 000 | 1-6/ | | 1-6/ | | 1-12/ | |
| | 2010 | | 2009 | | 2009 | |
--------------------------------------------------------------------------------
| | Tangibl | Intangi | Tangibl | Intangi | Tangibl | Intangi- |
| | e | -ble | e | -ble | e | ble |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at | 57 044 | 795 | 62 661 | 855 | 62 661 | 855 |
| the beginning | | | | | | |
| of the period | | | | | | |
--------------------------------------------------------------------------------
| Investments | 3 345 | 50 | 1 300 | 12 | 4 311 | 143 |
--------------------------------------------------------------------------------
| Decreases | -160 | | -68 | | -161 | |
--------------------------------------------------------------------------------
| Depreciation | -4 732 | -97 | -5 043 | -101 | -9 955 | -203 |
| and impairment | | | | | | |
--------------------------------------------------------------------------------
| Translation | -121 | -2 | -923 | -3 | 188 | |
| differences and | | | | | | |
| other changes | | | | | | |
--------------------------------------------------------------------------------
| Book value at | 55 376 | 746 | 57 927 | 763 | 57 044 | 795 |
| the end of the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| EUR 1 000 | 6/2010 | 6/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FOR OWN DEBT | | | |
--------------------------------------------------------------------------------
| Real estate mortgages | 24 045 | 24 045 | 24 045 |
--------------------------------------------------------------------------------
| Corporate mortgages | 50 000 | 50 000 | 50 000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER OWN COMMITMENTS | | | |
--------------------------------------------------------------------------------
| Leasing rents and commitments | 9 371 | 11 355 | 9 878 |
--------------------------------------------------------------------------------
| Rental liabilities | 7 350 | 9 684 | 8 494 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GUARANTEE COMMITMENTS | 1 724 | 1 531 | 1 752 |
--------------------------------------------------------------------------------
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| EUR 1 000 | 6/2010 | 6/2009 | 12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENCY DERIVATIVES | | | |
--------------------------------------------------------------------------------
| Nominal value | 6 351 | 9 253 | 5 637 |
--------------------------------------------------------------------------------
| Fair value | 111 | -26 | -27 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INTEREST RATE DERIVATIVES | | | |
--------------------------------------------------------------------------------
| Nominal value | 25 833 | 34 833 | 25 833 |
--------------------------------------------------------------------------------
| Fair value | -322 | -746 | -448 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ELECTRICITY DERIVATIVES | | | |
--------------------------------------------------------------------------------
| Nominal value | 2 337 | 2 360 | 1 292 |
--------------------------------------------------------------------------------
| Fair value | 98 | -278 | -120 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMODITY DERIVATIVES | | | |
--------------------------------------------------------------------------------
| Nominal value | | 916 | 435 |
--------------------------------------------------------------------------------
| Fair value | | 81 | 48 |
--------------------------------------------------------------------------------
Helsinki, 19 July 2010
SUOMINEN CORPORATION
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
interim-19-07-2010.pdf
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