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SUOMINEN CORPORATION'S INTERIM REPORT 1 JANUARY - 30 JUNE 2011

NET SALES GREW SOME, RESULT ON RED

Tampere, Finland, 2011-07-18 08:00 CEST (GLOBE NEWSWIRE) -- SUOMINEN CORPORATION      INTERIM REPORT 18 JULY 2011 AT 9 A.M.

INTERIM REPORT 1 JANUARY – 30 JUNE 2011

NET SALES GREW SOME, RESULT ON RED
 

KEY FIGURES	4-6/2011	4-6/2010	1-6/2011	1-6/2010	1-12/2010
Net sales, EUR million	43.4	44.1	87.7	84.8	173.4
Operating profit, EUR million	0.0	0.0	-0.6	-0.3	-10.8
Profit/loss for the period, EUR million	-1.1	-0.8	-2.9	-1.9	-14.4
Earnings/share, EUR	-0.02	-0.02	-0.06	-0.05	-0.34
Cash flow from operations/share, EUR	0.05	-0.08	0.06	-0.11	-0.06

Suominen’s net sales for the first half of the year grew compared with the corresponding period in 2010. The second-quarter operating profit improved to zero level, but cumulatively, the operating profit was still negative. The rise in raw material costs slowed down compared to the first quarter of the year. The on-going cost-saving measures had a positive impact on the Group’s result. It is estimated that the result after taxes for the whole year will improve over 2010, but remain negative.

GROUP FINANCIAL RESULTS

Suominen Corporation generated net sales of EUR 43.4 million (44.1) in the second quarter. Operating profit was EUR 0.0 million (0.0), profit before taxes EUR -1.4 million (-1.0) and profit after taxes EUR ‑1.1 million (-0.8).

Net sales for the first half of the year totalled EUR 87.7 million (84.8). Operating profit was EUR ‑0.6 million (-0.3), profit before taxes EUR -3.6 million (-2.5) and profit after taxes EUR -2.9 million (‑1.9).

Net sales increased by 4 per cent compared to the first six months of the previous year. Average sales prices increased, thanks both to price rises and to raw material price clauses included in sales contracts.

The operating profit for the first half of the year showed a loss of EUR 0.6 million. The rise in raw material prices slowed down compared to the first three months of the year and to certain extent levelled off. The cost impact of rising raw material prices was therefore lower in the second quarter than in the first. During the first half of the year, shorter review periods were negotiated for some raw material clauses included in sales contracts. Operating costs were down from the corresponding period in 2010. The result included EUR 0.5 million in non-recurring costs due to rationalisation measures in Flexibles.

Tight capital control and use of cash was continued. Investments were kept at a low level, and the amount of working capital decreased, despite higher raw material prices. Cash flow from operations was positive.

Cost-saving and operational enhancement programme
The most significant savings in Suominen’s Stairs to the Top efficiency programme were generated by the closure of the Nastola flexible packaging plant and the rationalisation measures decided on for Codi Wipes in late 2010. Most of the machinery transfers from the Nastola plant have been completed, and the savings will begin to have their full impact beginning in the second half of the year. The other efficiency measures were related to improving production yield and efficiency in the units. The positive impact of the savings and efficiency programmes on the result for the first six months amounted to some EUR 3 million.

Financing
Suominen refinanced its EUR 44 million syndicated credit facility by extending the average maturity of the financing. Under the amended credit terms, the repayment of EUR 15 million originally due at the end of June was prolonged to take place in three quarterly payments beginning in January 2012. The Group’s interest-bearing net liabilities totalled EUR 57.5 million (57.4), including capital loans of EUR 4.0 million (6.0). Repayments of non-current loans amounted to EUR 2.7 million. Net financial expenses were EUR 3.0 million (2.1), or 3.4 per cent (2.5) of net sales. The increased cost of financing was due to the higher average interest rate on the loans.

A total of EUR 2.8 million was released in working capital (EUR 6.4 million tied up). Trade receivables amounting to EUR 13.2 million (10.9) were sold to the bank. The equity ratio was 24.8 per cent (32.0). When capital loans are included in shareholders’ equity, the equity ratio was 28.1 per cent (36.3) and the net gearing 158.2 per cent (102.0). Cash flow from operations was EUR 2.8 million (-4.1) and EUR 0.06 per share (-0.11).

Investments
The company’s gross investments in production totalled EUR 2.4 million (3.5). Planned depreciation amounted to EUR 4.0 million (4.8). Codi Wipes accounted for EUR 0.1 million (0.3), Nonwovens for EUR 0.7 million (1.2) and Flexibles for EUR 1.4 million (2.0) of total investments. The Group’s investments were in efficiency enhancement and maintenance.

SEGMENT RESULTS

The Wiping business area generated net sales of EUR 54.6 million (51.7) in the first six months, a 6 per cent increase over the corresponding period in 2010. The business area’s operating profit was EUR ‑0.2 million (-0.9).

Net sales of Codi Wipes, at EUR 27.6 million (28.7), declined by 4 per cent on the previous year. Sales of personal care wipes increased, while baby wipe and moist toilet wipe sales were down. Average sales prices remained at the same level as in the corresponding period in 2010. The co-determination procedure completed in January resulted in a reduction of personnel by 19 employees, which was the most significant factor behind the unit’s lower operating expenses.

Net sales of Nonwovens increased by 16 per cent to EUR 30.1 million (26.0). Growth was most pronounced in deliveries of nonwovens for wiping products, but sales of nonwovens for hygiene and health care products also increased. Regionally, most growth was seen in Europe, although sales to North America also increased. The rise in raw material prices slowed down, and their cost impact was lower in the second quarter than in the first.

Net sales of Flexibles during the first half of the year totalled EUR 33.6 million (33.5) and operating profit was EUR 0.0 million (0.7). Hygiene packaging sales increased, while sales of carrier bags and security and system packaging remained more or less on a level with the previous year. Food packaging sales decreased on the previous year. Sales prices were raised on the basis of raw material clauses included in sales contracts and by implementing general price increases.

Rising prices of plastic-based raw materials, especially in the first months of the year, pushed the cost level up. Actual operating expenses decreased on the previous year. The machinery transfers from Nastola to the Polish and Tampere plants proceeded according to plan. Non-recurring costs amounting to EUR 0.5 million were recorded during the period.

SHARE CAPITAL AND SHARES

Share capital
The registered number of Suominen’s issued shares totals 47,395,014 shares. There were no changes in share capital during the period under review.

Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1 January to 30 June 2011 was 2,700,108 shares, equivalent to 5.7 per cent of shares included in the company’s share capital. The trading price varied between EUR 0.45 and EUR 0.64. The final trading price was EUR 0.50, giving the company a market capitalisation of EUR 23,667,358 on 30 June 2011.

Own shares
On 1 January 2011, the company held 168,805 of its own shares, accounting for 0.36 per cent of the share capital and votes.

The Annual General Meeting of Shareholders held in 2010 authorised the Board of Directors to decide on the acquisition of a maximum of 200,000 of the company’s own shares and on the conveyance of a maximum of 200,682 of the company’s own shares. The authorisations will be valid for 18 months after the end of the General Meeting, that is until 23 September 2011. The acquisition authorisation was exercised during 2010 to acquire 123,595 shares, which means that on 1 January 2011 the remaining authorisation was for 76,405 shares. Within the authorisation granted to the Board of Directors, 108,507 of the company’s own shares were conveyed as emoluments to the members of Suominen Corporation’s Board of Directors.

On 30 June 2011, Suominen Corporation held a total of 60,298 of its own shares, accounting for 0.13 per cent of the share capital and votes.

Other authorisations granted to the Board of Directors
The Board of Directors is not currently authorised to issue shares, convertible bonds, or bonds with warrants.

BUSINESS RISKS AND UNCERTAINTIES

The estimate on the development of Suominen’s net sales is in part based on forecasts and delivery plans received from customers. Changes in these forecasts and plans resulting from changes in the market conditions or in customers’ inventory levels may affect Suominen’s net sales. Due to the continued economic uncertainty and consumers’ cautious buying behaviour, the forecasts are subject to significant uncertainty.

Suominen’s customer base is fairly concentrated, which adds to the customer-specific risk. Long-term contracts are preferred in the case of the largest customers. Suominen has aimed at making general and customer-specific price increases on its products, which in principle involves a risk of losing orders in the future.

Nonwovens and Flexibles buy oil- and pulp-based raw materials for more than EUR 55 million annually, and the rapid changes in global market prices of raw materials affect Suominen’s profitability.

Suominen 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. There is production oversupply in most product groups, and thus 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 efficiency programmes include measures to improve production efficiency, for example through better yields, higher machine speeds and shorter set-up times. The full impact of the efficiency measures will be seen as soon as production volumes grow. Postponed or failed measures will have a negative impact on the company’s profit. The Flexibles business area is currently closing one plant and transferring the production to other plants, which involves a risk of delays in the production schedule.

Suominen aims to improve its balance sheet by reducing debt with financial institutions. For this reason, the amended credit terms of the EUR 44 million syndicated credit facility affirms that Suominen aims to seek capital market financing during the latter part of 2011. The company is also striving to further improve its balance sheet by the divestment of non-key assets and business operations. If the company is not able to free up capital or obtain capital market financing, there is a risk that Suominen will not be able to meet the debt reduction requirement. Suominen’s credit arrangements include covenants that the company must meet. These require the Group to have financial buffers worth a minimum of EUR 1 million until the end of October and of EUR 2 million after that. The Group’s equity ratio must be 27 per cent, with capital loans included in equity. Should Suominen default on its obligations, the banks have the right to declare the loans due and payable and to renegotiate the terms.

The sensitivity of Suominen’s goodwill to changes in business conditions is described in the notes to the financial statements 2010. Actual cash flows may deviate from the forecasted future discounted cash flows, as the long economic life-time of the company’s non-current assets, and changes in the estimated product prices, production costs, and interest rates used in discounting may result in write-downs.

General risks relating to business operations are described in the Report of the Board of Directors in the Annual Report 2010.

OUTLOOK

The demand for Suominen’s products is evaluated on the basis of customer contracts and use forecasts provided by customers. It is estimated that the demand for Suominen’s products will remain stable, and no major change from the previous year is anticipated in net sales for 2011.

Prices for Suominen’s products are expected to increase thanks to the price increases implemented and the raw material clauses included in sales contracts. Measures to reduce operational costs are continuing, and the cost savings generated by the closure of the Nastola plant will begin to have an impact from the second half of the year.

It is estimated that the result after taxes for all of 2011 will improve over 2010, but remain negative.

 

SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY–30 JUNE 2011

This interim report has been prepared in compliance with IAS 34 Interim Financial Reporting. The principles for preparing the interim report are the same as those used for preparing the financial statements for 2010, and this interim report should be read parallel to the financial statements for 2010. Changes to published accounting standards and interpretations, together with the new accounting standards that came into force on 1 January 2011, are presented in the financial statements for 2010.

All calculations in this interim report have been prepared in compliance with the revised IAS 1 standard, ‘Presentation of Financial Statements’. This 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 in equity will be presented in the statement of comprehensive income.

The figures in this interim report have not been audited.


BALANCE SHEET

EUR 1 000	6/2011	6/2010	12/2010
Assets
Non-current assets
Goodwill	18 498	23 404	18 498
Intangible assets	747	746	776
Tangible non-current assets	51 186	55 376	53 873
Available-for-sale financial assets	212	212	212
Held-to-maturity investments	421	288	354
Deferred tax assets	1 894	910	1 339
Non-current assets, total	72 958	80 936	75 052
Current assets
Inventories	27 211	28 600	24 373
Trade receivables	14 884	14 228	10 817
Other current receivables	3 106	2 895	5 666
Income tax receivables	371	926	200
Cash at bank and in hand	3 807	10 927	3 253
Current assets, total	49 379	57 576	44 309
Assets, total	122 337	138 512	119 361
Shareholders' equity and liabilities
Equity attributable to owners of the parent company
Share capital	11 860	11 860	11 860
Share premium account	24 681	24 681	24 681
Invested non-restricted equity fund	9 708	9 757	9 708
Fair value and other reserves	72	-228	665
Translation differences	555	-49	515
Other shareholders' equity	-17 073	-1 677	-14 143
Shareholders’ equity, total	29 803	44 344	33 286
Liabilities
Non-current liabilities
Deferred tax liabilities	2 524	3 069	2 930
Provisions	280	280	280
Capital loans	2 000	4 000	4 000
Interest-bearing liabilities	39 870	45 325	35 823
Non-current liabilities, total	44 674	52 674	43 033
Current liabilities
Interest-bearing liabilities	17 424	16 960	19 459
Capital loans	2 000	2 000	2 000
Income tax liabilities	231	341
Trade payables and other current liabilities	28 205	22 193	21 583
Current liabilities, total	47 860	41 494	43 042
Liabilities, total	92 534	94 168	86 075
Shareholders' equity and liabilities, total	122 337	138 512	119 361

STATEMENT OF INCOME

EUR 1 000	4-6/2011	4-6/2010	1-6/2011	1-6/2010	1-12/2010
Net sales	43 386	44 148	87 689	84 764	173 438
Cost of goods sold	-40 689	-41 499	-82 500	-79 416	-165 277
Gross profit	2 697	2 649	5 189	5 348	8 161
Other operating income	120	403	375	464	859
Sales and marketing expenses	-934	-899	-1 777	-1 814	-3 927
Research and development	-422	-463	-924	-971	-1 951
Administration expenses	-1 441	-1 485	-3 279	-3 128	-6 333
Other operating expenses	20	-222	-156	-241	-2 564
Operating profit before impairment losses	40	-17	-572	-342	-5 755
Impairment losses					-5 069
Operating profit	40	-17	-572	-342	-10 824
Financial income and expenses	-1 457	-988	-3 004	-2 126	-4 840
Profit before income taxes	-1 417	-1 005	-3 576	-2 468	-15 664
Income taxes	289	245	713	587	1 302
Profit/loss for the period	-1 128	-760	-2 863	-1 881	-14 362
Earnings/share, EUR	-0.02	-0.02	-0.06	-0.05	-0.34

STATEMENT OF COMPREHENSIVE INCOME

EUR 1 000	4-6/2011	4-6/2010	1-6/2011	1-6/2010	1-12/2010
Profit/loss for the period	-1 128	-760	-2 863	-1 881	-14 362
Other comprehensive income
Total exchange differences on foreign operations	20	-804	54	92	854
Fair value changes of cash flow hedges	-425	318	-962	332	1 661
Other reclassifications	-3	-8	-12	-2	-2
Income tax on other comprehensive income	105	127	236	-110	-654
Other comprehensive income, total	-303	-367	-684	312	1 859
Total comprehensive income for the period	-1 431	-1 127	-3 547	-1 569	-12 503

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

EUR 1 000	Share capital	Share premium account	Invested non-restricted equity fund	Own shares	Translation differences	Fair value reserves	Retained earnings	Total
Total equity at 1 Jan. 2011	11 860	24 681	9 708	-163	515	828	-14 143	33 286
Profit/loss for the period							-2 863	-2 863
Other comprehensive income					40	-712	-12	-684
Share-based payments							13
Share issue
Dividend
Repurchase of own shares
Conveyance of own shares				120			-69	51
Total equity at 30 June 2011	11 860	24 681	9 708	-43	555	116	-17 074	29 803

 

EUR 1 000	Share capital	Share premium account	Invested non-restricted equity fund	Own shares	Translation differences	Fair value reserves	Retained earnings	Total
Total equity at 1 Jan. 2010	11 860	24 681		-1	-117	-401	667	36 689
Profit/loss for the period							-1 881	-1 881
Other comprehensive income					68	246	-2	312
Share-based payments							15	15
Share issue			9 757					9 757
Dividend							-474	-474
Repurchase of own shares				-123				-123
Conveyance of own shares				51			-1	50
Total equity at 30 June 2010	11 860	24 681	9 757	-73	-49	-155	-1 676	44 345

 

EUR 1 000	Share capital	Share premium account	Invested non-restricted equity fund	Own shares	Translation differences	Fair value reserves	Retained earnings	Total
Total equity at 1 Jan. 2010	11 860	24 681		-1	-117	-401	667	36 689
Profit/loss for the period							-14 362	-14 362
Other comprehensive income					632	1 229	-2	1 859
Share-based payments							29	29
Share issue			9 708					9 708
Dividend							-474	-474
Repurchase of own shares				-213				-213
Conveyance of own shares				51			-1	50
Total equity at 31 Dec. 2010	11 860	24 681	9 708	-163	515	828	-14 143	33 286

CASH FLOW STATEMENT

EUR 1 000	1-6/2011	1-6/2010	1-12/2010
Operations
Operating profit	-572	-342	-10 824
Total adjustments	3 868	4 761	14 076
Cash flow before change in working capital	3 296	4 419	3 252
Change in working capital	2 764	-6 379	-1 054
Financial items	-3 240	-2 150	-4 626
Taxes paid	-1	-20	-31
Cash flow from operations	2 819	-4 130	-2 459
Investment payments
Investments in tangible and intangible assets	-2 501	-3 543	-5 966
Proceeds from disposal of fixed assets and other proceeds	190	349	751
Cash flow from investing activities	-2 311	-3 194	-5 215
Financing
Non-current loans drawn	2 765	13 000	8 000
Repayments of non-current loans	-737	-5 033	-23 731
Change in commercial papers		1 488	988
Repayments of capital loans	-2 000	-2 000	-2 000
Current loans drawn			17 000
Dividends paid		-474	-474
Repurchase and conveyance of own shares	51	-73	-163
Share issue		9 757	9 708
Cash flow from financing	79	16 665	9 328
Change in cash and cash equivalents	587	9 341	1 654

 

KEY FIGURES	4-6/2011	4-6/2010	1-6/2011	1-6/2010	1-12/2010
Net sales, change, % *	-1.7	1.8	3.5	-6.2	-3.3
Gross profit, % **	6.2	6.0	5.9	6.3	4.7
Operating profit, % **	0.1	0.0	-0.7	-0.4	-6.2
Financial income and expenses, % **	-3.4	-2.2	-3.4	-2.5	-2.8
Profit before income taxes, % **	-3.3	-2.3	-4.1	-2.9	-9.0
Profit for the period, % **	-2.6	-1.7	-3.3	-2.2	-8.3
Earnings/share, EUR	-0.02	-0.02	-0.06	-0.05	-0.34
Equity/share, EUR ***			0.63	0.94	0.70
Cash flow from operations/share, EUR			0.06	-0.11	-0.06
Return on equity (ROE), %			-18.2	-9.7	-37.3
Return on invested capital (ROI), %			-1.3	-0.6	-10.6
Equity ratio, %			24.8	32.0	27.9
Gearing, %			192.9	129.3	174.0
Gross investments, EUR 1 000			2 377	3 458	6 190
Depreciation, EUR 1 000			4 013	4 829	9 322
Impairment losses, EUR 1 000					5 069

*   Compared with the corresponding period of the previous year.
**  As of net sales.
*** Reference data has been corrected.


SEGMENT REPORTING

Wiping

EUR 1 000	1-6/2011	1-6/2010	Change %	1-12/2010
Net sales
- Codi Wipes	27 571	28 728	-4.0	56 371
- Nonwovens	30 076	25 968	15.8	59 084
- eliminations	-3 042	-3 000	1.4	-7 296
Total	54 606	51 696	5.6	108 159
Operating profit before impairment losses	-238	-929		-3 699
% of net sales	-0.4	-1.8		-3.4
Impairment losses				-4 906
Operating profit	-238			-8 605
Assets	73 898	79 919		67 650
Liabilities	17 809	12 026		11 620
Net assets	56 089	67 893		56 030
Investments	886	1 440		2 278
Depreciation	2 440	3 256		6 117
Impairment losses				4 906
Average personnel	341	377		369

Flexibles

EUR 1 000	1-6/2011	1-6/2010	Change %	1-12/2010
Net sales	33 580	33 502	0.2	66 140
Operating profit	-47	738		-1 941
% of net sales	-0.1	2.2		-2.9
Assets	46 496	47 872		45 950
Liabilities	11 429	12 549		10 048
Net assets	35 067	35 323		35 902
Investments	1 417	2 011		3 788
Depreciation	1 556	1 561		3 181
Impairment losses				163
Average personnel	494	529		521

Non-allocated items

EUR 1 000	1-6/2011	1-6/2010	1-12/2010
Net sales	-496	-434	-861
Operating profit	-287	-150	-115
Assets	1 943	10 721	5 760
Liabilities	63 296	69 592	64 406
Investments	73	7	124
Depreciation	18	12	24
Average personnel	11	11	11

 

NET SALES BY MARKET AREA

EUR 1 000	1-6/2011	1-6/2010	1-12/2010
Finland	13 660	13 393	27 053
Scandinavia	8 085	7 817	14 821
The Netherlands	4 175	4 262	9 915
Europe, other	54 806	53 705	104 651
Other countries	6 963	5 587	16 998
Net sales, total	87 689	84 764	173 438

QUARTERLY FIGURES

EUR 1 000	III/2010	IV/2010	I/2011	II/2011	III/2010-I/2011
Net sales
Wiping
- Codi Wipes	14 210	13 433	13 985	13 586	55 214
- Nonwovens	14 958	18 159	15 091	14 985	63 193
- eliminations	-1 734	-2 562	-1 131	-1 911	-7 337
Total	27 434	29 029	27 946	26 660	111 069
Flexibles	16 125	16 513	16 561	17 019	66 218
Non-allocated items	-200	-227	-203	-294	-924
Net sales, total	43 359	45 315	44 303	43 386	176 363
Operating profit
Wiping	-1 136	-623	-298	60	-1 998
% of net sales	-4.1	-2.1	-1.1	0.2	-1.8
Flexibles	-720	-1 017	-62	512	-1 287
% of net sales	-4.5	-6.2	-0.4	3.0	-1.9
Non-allocated items	33	3	-57	-230	-252
Operating profit before non-recurring costs	-1 824	-1 637	-417	342	-3 536
% of net sales	-4.2	-3.6	-0.9	0.8	-2.0
Non-recurring costs		-7 021	-195	-302	-7 518
Operating profit, total	-1 824	-8 658	-612	40	-11 054
% of net sales	-4.2	-19.1	-1.4	0.1	-6.3
Net financial expenses	-1 028	-1 686	-1 547	-1 457	-5 718
Profit before income taxes	-2 852	-10 344	-2 159	-1 417	-16 771

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 567,000, share-based payments EUR 13,000, unsecured loans EUR 440,000, and interest payments EUR 76,000.


MOVEMENTS IN BORROWINGS

EUR 1 000	1-6/2011	1-6/2010
Total borrowings on 1 January	61 282	60 861
Current loans from financial institutions on 1 January	17 000
Change in current loans from financial institutions	-564
Current loans from financial institutions on 30 June	16 436
Commercial papers on 1 January	988
Change in commercial papers		1 488
Commercial papers on 30 June	988	1 488
Non-current loans on 1 January	37 294	52 861
Change in non-current loans	2 576	7 936
Non-current loans on 30 June	39 870	60 797
Capital loans on 1 January	6 000	8 000
Change in capital loans	-2 000	-2 000
Capital loans on 30 June	4 000	6 000
Total borrowings on 30 June	61 294	68 285

CHANGES IN FIXED ASSETS

	1-6/2011		1-6/2010		1-12/2010
EUR 1 000	Tangible	Intangible	Tangible	Intangible	Tangible	Intangible
Book value at the beginning of the period	53 873	776	57 044	795	57 044	795
Investments	2 232	78	3 345	50	5 884	177
Decreases	-967		-160		-466	-1
Depreciation	-3 907	-106	-4 732	-97	-9 127	-195
Translation differences and other changes	-45		-121	-2	538
Book value at the end of the period	51 186	747	55 376	746	53 873	776

CONTINGENT LIABILITIES

EUR 1 000	6/2011	6/2010	12/2010
For own debt
Real estate mortgages	26 045	24 045	24 045
Floating charges	50 000	50 000	60 069
Pledged subsidiary shares	82 982		82 982
Other own commitments
Operating leases, real estates	11 902	9 371	9 465
Operating leases, machinery and equipment	5 462	7 350	7 577
Guarantee commitments	1 894	1 724	1 995

NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

EUR 1 000	6/2011	6/2010	12/2010
Currency derivatives
Nominal value	6 464	6 351	5 172
Fair value	-17	111	-138
Interest rate derivatives
Nominal value	9 333	25 833	13 833
Fair value	-14	-322	-143
Electricity derivatives
Nominal value	3 596	2 337	2 638
Fair value	127	98	1 249

Helsinki, 18 July 2011

SUOMINEN CORPORATION

Board of Directors

For additional 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

Suominen produces high-quality flexible packaging, wet wipes and nonwovens for industry and the retail sector. The Group is one of Europe’s leading manufacturers in all its business areas, with operations in Finland, Poland, the Netherlands, Sweden and Russia. The Group had net sales of EUR 173 million in 2010 and it employs around 900 people. Suominen is listed on the NASDAQ OMX Helsinki. www.suominen.fi 

interim-2011-07-18E.pdf