SUOMINEN CORPORATION FINANCIAL STATEMENT 1.3.-31.3.2012
Tampere, 2012-04-25 08:32 CEST (GLOBE NEWSWIRE) --
Suominen Corporation Stock exchange release 25 April at 9.30 a.m.
SUOMINEN CORPORATION FINANCIAL STATEMENT RELEASE
FINANCIAL STATEMENT RELEASE 1 JANUARY–31 MARCH 2012
SUOMINEN’S OPERATING PROFIT TURNS POSITIVE
| KEY FIGURES | 1-3/2012 | 1-3//2011 | 1-12/2011 |
| Net sales, EUR million | 111.1 | 43.6 | 213.4 |
| Operating profit, EUR million | 3.2 | -0.6 | -4.8 |
| Profit/loss for the period, EUR million | -0.3 | -1.7 | -9.5 |
| Earnings/share, EUR | 0.00 | -0.04 | -0.11 |
| Cash flow from operations/share, EUR | -0.03 | 0.01 | -0.03 |
Suominen’s operating profit for the three months was positive. The quarter was the first one to include the figures of the Home and Personal business area for the whole reporting period. The acquisition doubled the reported net sales but the comparable pro-forma sales declined compared to the first quarter of 2011. The company has started a large-scale programme to exploit the potential benefits of the integration. It is estimated that the company’s full-year reported net sales will grow and the result after taxes will improve over that of 2011.
President & CEO Nina Kopola:
“We improved our result substantially during the first quarter of the year- we achieved positive operating profit. The operating profit improved in both Wiping and Flexible Packaging segments. Our net sales more than doubled as a result of the acquisition of the Home and Personal division from Ahlstrom Corporation.
Our first priority this year is to continuously improve profitability. This is why we have started an extensive program in Nonwovens in order to attain all the synergy benefits and cost benefits. The target is to achieve cost savings of the order of about two percentage points on net sales.”
During this year we will furthermore focus on creating common ways of working and a common corporate culture.
GROUP FINANCIAL RESULTS
Suominen Corporation generated net sales of EUR 111.1 million (43.6) in the first quarter. Operating profit was EUR 3.2 million (-0.6). Profit before taxes was EUR 0.5 million (-2.2) and profit after taxes EUR -0.3 million (-1.7).
Net sales more than doubled compared to the first quarter of 2011 because the reference period did not include the figures for the acquired Home and Personal business. The comparable sales change in net sales was -8,0%. The development of demand was mixed: in Europe, net sales decreased, whereas in North America it increased.
The operating profit was positive thanks to lower operating expenses. The prices for oil-based raw materials increased during the first quarter, which was most clearly reflected in the margins for flexible packaging. As regards nonwovens, this negative impact was alleviated by changes in the sales mix.
Cash flow from operations was EUR -6.4 million (0.4). Working capital has normalised to correspond with regular business operations, and when trade receivables and trade payables have been accrued to the balance sheet has this tied up financing EUR 12.9 million during the first quarter. Investments were kept at a low level.
Integration of the acquired operations and efficiency-enhancement measures
Suominen continued to integrate the Home and Personal business acquired from Ahlstrom Corporation into the Group. In addition to Suominen’s previous efficiency and cost-saving programmes, a comprehensive assessment was started to realise the synergies and cost benefits related with the acquisition.
A clear profitability improvement is expected from the efficiency measures. Suominen has, over several years, achieved savings through rationalisation and efficiency measures, amounting to approximately 2% of net sales. The measures started now also focus on improving the company’s profitability and aim at a similar level of cost benefits as previous measures, in relation to net sales.
The acquisition of the Brazilian unit belonging to the Home and Personal business area was not finalised according to the previously estimated schedule, i.e. in the first quarter. Final approvals from the competition and permitting authorities are expected during the next few months. The actual operations of the Brazilian plant have developed as planned and its net sales are growing.
Financing
The Group’s interest-bearing net liabilities amounted to EUR 123.5 million (58.0). Cash and bank receivables included the share of the Brazilian transaction, which totaled EUR 25 million and is being held in an escrow account. Repayments of non-current loans were EUR 2.7 million (2.0). Net financial expenses were EUR 2.7 million (1.5) or 2.5 per cent (3.6) of net sales. The increase in financial expenses was caused by the increased borrowing and higher average interest rates on loans. A total of EUR 12.9 million was tied up in working capital (EUR 0.8 million released). The net working capital was increased during the first quarter because the working capital items were not transferred at Home and Personal acquisition and they still kept rising in the first months of the year. Trade receivables amounting to EUR 12.1 million (10.5) were sold to the bank. The equity ratio was 32.8 per cent (25.6) and the net gearing 112.4% (186.1). Cash flow from operations was EUR -6.4 million (0.4) and EUR -0.03 per share (0.01).
Investments
The company’s gross investments in production totalled EUR 0.5 million (1.3). Planned depreciation amounted to EUR 4.9 million (2.1). Nonwovens accounted for EUR 0.3 million (0.5), Codi Wipes for EUR 0.1 million (0.1) and Flexibles for EUR 0.1 million (0.6) of total investments. The Group’s investments were in maintenance.
SEGMENT RESULTS
The net sales of Wiping totalled EUR 97.5 million (27.2) which is over three times higher than during the first quarter of 2011. The segment’s operating profit was EUR 3.8 million (-0.3).
Net sales of Nonwovens totaled EUR 85.7 million (14.3). Nonwovens’ comparable 3 month sales (pro forma) was on the same level as during the first quarter of previous year. Delivery volumes decreased slightly. The application areas for nonwoven materials are distributed as follows: baby wipes accounted for 50% of sales, household wipes for about 20%, personal care wipes for about 15%, and industrial wipes for 10%. Sales of nonwovens used for household wipes increased, in other application areas sales decreased. Among the product portfolio the position of household wipes and personal care strengthened whereas baby wipes share declined.
Regionally the sales of North American plants increased compared to the pro forma figures with the previous year while sales in Europe declined. The development of Europe net sales was caused by stiffening competition and by the interruption of one spunlace production line in Italy due to a fire damage.
Operating profit turned to profitable mainly due to decreased operational costs. In operational costs there were savings compared to pro forma figures. Integration of Home and Personal business to Suominen Nonwovens lowered the operational costs compared to if the business units would have operated separately.
The prices of oil-based raw materials increased during the first quarter. The costs of Nonwovens were divided more balanced between different raw materials and the consumer changes between these partly softened the price increase.
The work to integrate the business operations has continued intensively during the first months of the year. Key positions have been filled, but it will still take some time to stabilize the whole organization. As part of the Group’s cost-saving programme, efficiency measures will be implemented in Nonwovens and the focus will be on utilizing the synergy benefits from the newly created organisation.
Net sales of Codi Wipes, at EUR 13.1 million (14.0), which was 6% less than in the previous year. Sales of hygiene packaging and moist toilet wipes remained at the same level as in the previous year, so the sales decrease came from baby wipes. Average sales prices were on par with the previous year. The unit’s operating expenses were on the same level as in the first three months of 2011.
Net sales of Flexibles totalled EUR 13.9 million (16.6), a decrease of 16% from the previous year. Sales of hygiene packaging decreased about 25%, food packaging sales decreased about 20% and retail packaging by about 10%.The price competition in the field is still tight and the price actions made during 2011 caused some customer losses, which now are seen as sales decrease.
The operating loss of the business unit was EUR -0.1 million (-0.3). The prices of plastic-based raw materials for flexible packaging increased sharply during the first months of the year. It was impossible to compensate for these costs through corresponding increases in sales prices during the period under review. Operating expenses were lower than in the previous year thanks to the rationalisation measures carried out in production in 2011. Flexibles’ production plant in Nastola, Finland, was sold during the period under review, resulting in a sales profit of EUR 0.5 million.
GENERAL MEETINGS OF SHAREHOLDERS AND INFORMATION ON SHARES
GENERAL MEETING OF SHAREHOLDERS
The Annual General Meeting of shareholders of Suominen Corporation was held on 4 April, 2012. The Annual General Meeting decided that no dividend is paid for the financial year 2011.
The Annual General Meeting adopted the financial statements and the consolidated financial statements for the financial year 2011 and discharged the members of the Board of Directors and the CEOs from liability.
The Annual General Meeting confirmed the number of members of the Board of Directors to be five (5). The Meeting elected Mr. Risto Anttonen, Mr. Jorma Eloranta, Ms. Suvi Hintsanen, Mr. Hannu Kasurinen and Mr. Heikki Mairinoja as the members of the Board of Directors for the next term of office in accordance with the Articles of Association. The Board of Directors held an organizing meeting after the Annual General Meeting and elected Jorma Eloranta as its Chairman and Risto Anttonen as Deputy Chairman.
PricewaterhouseCoopers Oy, Authorized Public Accountants, was re-elected as auditor of Suominen Corporation for the term expiring at the close of the next Annual General Meeting.
SHARE CAPITAL AND SHARES
Share capital
The registered number of Suominen’s issued shares totals 245,934,122 shares, equaling to EUR 11,860,056.
Amendment of the articles of association
The Annual General Meeting approved the proposal of the Board of Directors on the amendment of section 1 of the Articles of Association regarding the name of the company so that the company’s name in Finnish is Suominen Oyj. The Finnish Trade Register has approved the Finnish company name change on 12 April 2012.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1 January to 31 March 2012 was 665,620 shares, accounting for 0.3% of the share capital and votes. The trading price varied between EUR 0.39 and EUR 0.47. The closing trading price was EUR 0.42, giving the company a market capitalization of EUR 103,267,006 on 31 March 2012.
Own shares
On 1 January and 31 March 2012, the company Suominen Corporation held 60,298 of its own shares, accounting for 0.0 % of the share capital and votes.
The Annual General Meeting 4 April approved the proposal of the Board of Directors to authorize the Board of Directors to decide on repurchasing a maximum of 3,000,000 company’s own shares. The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on NASDAQ OMX Helsinki Ltd at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid in accordance with the rules of NASDAQ OMX Helsinki Ltd and Euroclear Finland Ltd.
The shares shall be repurchased to be used in company’s share-based incentive programs, in order to disburse the remuneration of the members of the Board of Directors, for use as consideration in acquisitions related to the company’s business, or to be held by the company, to be conveyed by other means or to be cancelled.
The Board of Directors shall decide on other terms and conditions related to the repurchase of the company’s own shares. The repurchase authorization shall be valid until 30 June 2013.
Stock options
Suominen’s stock option plan 2009 is currently in effect. A total of 300,000 2009A stock options have been granted at the subscription price of EUR 0.95. A total of 50,000 of these have been returned to the company, i.e. the option right holders still have 250,000 shares. The subscription period for the 2009A stock options is from 2 May 2011 to 30 October 2012. A total of 300,000 2009B stock options have been granted at the subscription price of EUR 0.96. The number of shares that can be subscribed under the stock option is 300,000. The subscription period for the 2009B stock options is from 2 May 2012 to 30 October 2013.
As the registered number of Suominen’s issued shares totals 245,934,122, the number of shares may rise to a maximum of 246,484,122 after stock option subscriptions.
Authorizing the Board of Directors to decide on the issuance of shares and special rights entitling to shares
The Annual General Meeting approved the proposal of the Board of Directors to authorize the Board of Directors to decide on issuing new shares and/or conveying the company’s own shares held by the company and/or granting special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Companies Act. New shares may be issued and the company’s own shares may be conveyed to the company’s shareholders in proportion to their current shareholdings in the company or by waiving the shareholder’s pre-emption right, through a directed share issue if the company has a weighty financial reason to do so, such as using the shares as consideration in possible acquisitions or other arrangements related to the company’s business, as financing for investments or using the shares as part of the company’s incentive program. The new shares may also be issued in a Free Share Issue to the company itself.
New shares may be issued and the company’s own shares held by the company may be conveyed either against payment or for free. A directed share issue may be a Free Share Issue only if there is an especially weighty financial reason both for the company and with regard to the interests of all shareholders in the company. A maximum of 50,000,000 new shares may be issued. A maximum of 3,100,000 of the company’s own shares held by the company or its group company may be conveyed. The number of shares to be issued to the company itself together with the shares repurchased to the company on basis of the repurchase authorization shall be at the maximum of 3,100,000 shares. The Board of Directors may grant special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act, which carry the right to receive against payment new shares or own shares held by the company. The right may also be granted to the company’s creditor in such a manner that the right is granted on condition that the creditor’s receivable is used to set off the subscription price (‘Convertible Bond’).
The maximum number of new shares that may be subscribed and own shares held by the company that may be conveyed by virtue of the special rights granted by the company is 10,000,000 shares in total which number is included in the maximum number stated earlier (50,000,000). The authorizations shall be valid until 30 June 2013.
Other authorizations granted to the Board of Directors
The Board of Directors has no other authorizations to issue shares or special rights entitling to shares, option rights and/or convertible bonds.
BUSINESS RISKS AND UNCERTAINTIES
The estimate of net sales development of Suominen is partly based on the forecasts and delivery plans received from the customers. Changes in in the forecasts and in the plans caused by market situation or by customers’ stock changes might change Suominen’s net sales forecast. Due to the deterioration in the general economic situation and due to cautious consumer purchasing habits the forecasts include uncertainty.
Suominen’s customer base is comparatively concentrated, which adds to the customer specific risks. Long-term contracts are being preferred in the case of the largest customers. In practice the customer relationships are long-term and for several years.
Suominen purchases significant amounts of oil- and pulp-based raw materials annually. The raw materials are the biggest cost of operations. Rapid changes in the global market prices of raw materials affect the company’s profitability. Extended interruptions of Suominen’s main raw materials could disrupt production and have a negative impact on the Group’s overall business operations. As Suominen sources its raw materials from a number of major international suppliers, significant interruptions are unlikely.
Suominen has no competitors with a completely similar product offering but the company has numerous regional, national and international competitors in its different product groups. There is currently oversupply in several product groups and additional production capacity is planned for Europe in, for example, nonwovens. If Suominen is not able to compete with an attractive product offering, it may lose some of its market share, and 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. Substantial synergy benefits are expected to be realized in the business acquisition. Postponed or failed efficiency measures and synergy exploitation will have a negative impact on the company’s profit.
Group’s damage risks are insured in order to guarantee continuity of operations. In autumn 2011 a fire broke out at the Mozzate plant in Italy, causing damage to one of the production lines. As Suominen has valid damage and business interruption insurance, it is expected that the damage will be compensated and the financial losses caused by the interruption of business will be covered. The incident, however, bears greater risks than usual in terms of restoring the situation to how it was before the fire.
Suominen’s credit arrangements include covenants that the company must meet. The financial covenants included in the credit agreement of EUR 150 million concluded in October 2011 are the net-debt-to-EBITDA, and the company’s debt/equity ratio. At year-end 2012, Suominen’s net debts cannot be greater than 3.2 times the EBITDA, and the company’s debt/equity ratio must be less than 100%. These key figures in the Q1 2012 report were 3.9 and 99%. The credit covenants were determined in in connection with the acquisition, which increased the risks of banks. Now that the integrated operations are stabilizing, Suominen and banks have agreed to continue negotiations to check credit terms and to stabilize financing.
The sensitivity of Suominen’s goodwill to changes in business conditions is described in the notes to the financial statements 2011. 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 related to business operations are described in the Report of Board of Directors in the Annual Report 2011.
OUTLOOK
Suominen’s products are used in daily consumer goods, such as wet wipes and plastic packaging. The general economic situation determines the development of consumer demand, even though the demand for consumer goods is not very cyclical in nature. Consumers’ cautious purchasing behavior is expected to continue hand in hand with muted economic growth. Supply exceeds demand for many of Suominen’s products, especially in Europe, and new production capacity is even being built in some product groups.
The company estimates the trend in demand for its products on the basis of both the general market situation and, above all, on the basis of the framework agreements drawn up with its clients. Suominen estimates that demand for its products will remain at the level of 2011. In Europe the demand will decrease while in North America the sales will increase. In South America and in Eastern Europe, the sales are estimated to grow. There will be no significant change in the comparable sales volumes compared to the previous year.
Suominen’s most substantial cost factor – the price development of oil- and pulp-based raw material – was in decline at the end of 2011. During the first quarter oil prices have risen steeply. Chiefly on the basis of the price trend in oil raw materials, it is estimated that Suominen’s raw material prices stay on the level of the first quarter. Suominen will continue to streamline its operating costs and the company has launched a separate project to ensure the realization of synergy benefits related to the acquisition of the Home and Personal business. The target is to achieve a couple of per cent cost benefits comparable to net sales. Suominen will focus on developing its core business.
The Brazilian unit business transaction of the Home and Personal is expected to be realized once approval from the Brazilian authorities has been obtained in the second quarter of 2012.
Suominen’s net sales will increase considerably as the Home and Personal business’s figures are included in the Group’s net sales. It is estimated that the result after taxes for the year will improve over that of 2011.
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY – 31 MARCH 2012
These financial statemetns have 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 2011, and this interim report should be read parallel to the financial statements for 2011. Changes to published accounting standards and interpretations, together with the new accounting standards that came into force on 1 January 2012, are presented in the financial statements for 2011.
All calculations in this financial statement 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 these financial statements have not been audited.
BALANCE SHEET
| EUR 1 000 | 3/2012 | 3/2011 | 12/2011 |
| Assets | |||
| Non-current assets | |||
| Goodwill | 34 298 | 18 498 | 34 298 |
| Intangible assets | 12 808 | 773 | 13 146 |
| Tangible non-current assets | 133 171 | 51 876 | 139 886 |
| Available-for-sale financial assets | 206 | 212 | 212 |
| Held-to-maturity investments | 438 | 421 | 445 |
| Deferred tax assets | 2 766 | 1 753 | 2 756 |
| Non-current assets, total | 183 687 | 73 533 | 190 743 |
| Current assets | |||
| Inventories | 44 241 | 25 218 | 45 972 |
| Trade receivables | 54 778 | 15 653 | 41 798 |
| Other current receivables | 18 061 | 3 617 | 17 480 |
| Income tax receivables | 1 470 | 252 | 1 205 |
| Financial assets on escrow | 25 000 | 25 000 | |
| Cash at bank and in hand | 8 039 | 3 379 | 15 887 |
| Current assets, total | 151 589 | 48 119 | 147 342 |
| Assets, total | 335 276 | 121 652 | 338 085 |
| 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 | 97 054 | 9 708 | 97 054 |
| Fair value and other reserves | -423 | 268 | -484 |
| Translation differences | 740 | 540 | -637 |
| Other shareholders' equity | -24 025 | -15 880 | -23 737 |
| Shareholders’ equity, total | 109 887 | 31 177 | 108 737 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 2 686 | 2 642 | 3 661 |
| Provisions | 280 | 280 | 280 |
| Capital loans | 2 000 | 920 | |
| Other non-current liabilities | 1 218 | 1 234 | |
| Interest-bearing liabilities | 134 142 | 38 034 | 139 961 |
| Non-current liabilities, total | 138 326 | 42 956 | 146 056 |
| Current liabilities | |||
| Interest-bearing liabilities | 21 471 | 19 459 | 19 929 |
| Capital loans | 920 | 2 000 | 920 |
| Income tax liabilities | 2 081 | 200 | 724 |
| Trade payables and other current liabilities | 62 587 | 25 860 | 61 720 |
| Current liabilities, total | 87 063 | 47 519 | 83 292 |
| Liabilities, total | 225 389 | 90 475 | 229 248 |
| Shareholders' equity and liabilities, total | 335 276 | 121 652 |
338 085 |
STATEMENT OF INCOME
| EUR 1 000 | 1-3/2012 | 1-3/2011 | 1-12/2011 |
| Net sales | 111 087 | 43 557 | 213 350 |
| Cost of goods sold | -102 083 | -41 773 | -205 507 |
| Gross profit | 9 004 | 1 784 | 7 842 |
| Other operating income | 2 456 | 963 | 4 905 |
| Sales and marketing expenses | -1 859 | -843 | -4 050 |
| Research and development | -711 | -502 | -1 866 |
| Administration expenses | -5 515 | -1 838 | - 8 492 |
| Other operating expenses | -185 | -176 | -3 168 |
| Operating profit | 3 190 | -612 | -4 829 |
| Financial income and expenses | -2 731 | -1 547 | -5 197 |
| Profit before income taxes | 459 | -2 159 | -10 026 |
| Income taxes | -750 | 424 | 494 |
| Profit/loss for the period | -291 | -1 735 | -9 531 |
| Earnings/share, EUR | 0.00 | -0.04 | -0.11 |
STATEMENT OF COMPREHENSIVE INCOME
| EUR 1 000 | 1-3/2012 | 1-3/2011 | 1-12/2011 |
| Profit/loss for the period | -291 | -1 735 | -9 531 |
| Other comprehensive income | |||
|
Currency translation differences on foreign operations |
1 095 | 34 | -1 595 |
| Fair value changes of cash flow hedges | 63 | -537 | -1 731 |
| Other reclassifications | -3 | -9 | -20 |
| Income tax on other comprehensive income | 280 | 131 | 906 |
| Other comprehensive income, total | 1 435 | -381 | -2 440 |
| Total comprehensive income for the period | 1 144 | -2 116 | -11 972 |
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. 2012 |
11 860 |
24 861 |
97 054 |
-43 |
-637 |
-440 |
-23 738 |
108 737 |
|||||||
| Profit/loss for the period | -291 | -291 | |||||||||||||
| Other comprehensive income | 1 377 | 61 | -3 | 1 435 | |||||||||||
| Share-based payments | 6 | 6 | |||||||||||||
|
Total equity at 31 Mar. 2012 |
11 860 | 24 681 | 97 054 | -43 | 740 | -379 | -24 025 | 109 887 | |||||||
| 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 | -1 735 | -1 735 | ||||||
| Other comprehensive income | 25 | -397 | -9 | -381 | ||||
| Share-based payments | 7 | 7 | ||||||
|
Total equity at 31 Mar. 2011 |
11 860 | 24 681 | 9 708 | -163 | 540 | 431 | -15 880 | 31 177 |
| 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 | -9 531 | -9 531 | |||||||||||||
| Other comprehensive income | -1 152 | -1 268 | -20 | -2 440 | |||||||||||
| Share-based payments | 26 | 26 | |||||||||||||
| Share issue | 87 346 | 87 346 | |||||||||||||
| Conveyance of own shares | 120 | -69 | 51 | ||||||||||||
|
Total equity at 31 Dec. 2011 |
11 860 | 24 681 | 97 054 | -43 | -637 | -440 | -23 738 | 108 737 | |||||||
CASH FLOW STATEMENT
|
EUR 1 000 |
1-3/2012 | 1-3/2011 | 1-12/2011 |
| Operations | |||
| Operating profit | 3 190 | -612 | -4 829 |
| Total adjustments | 4 430 | 2 051 | 9 459 |
| Cash flow before change in working capital | 7 621 | 1 439 | 4 630 |
| Change in working capital | -12 872 | 820 | 1 907 |
| Financial items | -1 085 | -1 811 | -9 833 |
| Taxes paid | -108 | -1 | 397 |
| Cash flow from operations | -6 444 | 447 | -2 898 |
| Investment payments | |||
| Investments in tangible and intangible assets | -714 | -633 | -4 231 |
| Investments in acquired business operations | -139 810 | ||
|
Proceeds from disposal of fixed assets and other proceeds |
1 867 |
102 |
1 628 |
| Cash flow from investing activities | 1 153 | -531 | -142 414 |
| Financing | |||
| Non-current loans drawn | 2 246 | 148 250 | |
| Repayments of non-current loans | -1 731 | -48 563 | |
| Repayments of capital loans | -920 | -2 000 | -4 160 |
| Repurchase and conveyance of own shares | 51 | ||
| Share issue | 87 346 | ||
| Cash flow from financing | -2 651 | 246 | 182 924 |
| Change in cash and cash equivalents * | -7 942 | 162 | 37 613 |
* Includes also the change in restricted financial assets.
| KEY FIGURES | 1-3/2012 | 1-3/2011 | 1-12/2011 |
| Net sales, change, % * | 155.0 | 9.1 | 24.7 |
| Gross profit, % ** | 8.1 | 5.6 | 4.9 |
| Operating profit, % ** | 2.9 | -1.4 | -2.2 |
| Financial income and expenses, % ** | -2.5 | -3.5 | -2.4 |
| Profit before income taxes, % ** | 0.4 | -4.9 | -4.6 |
| Profit for the period, % ** | -0.3 | -3.9 | -4.4 |
| Earnings/share, EUR | 0.00 | -0.04 | -0.11 |
| Equity/share, EUR | 0.44 | 0.66 | 0.44 |
| Cash flow from operations/share, EUR | -0.03 | 0.01 | -0.03 |
| Return on equity (ROE), % | -1.1 | -21.5 | -20.9 |
| Return on invested capital (ROI), % | 4.6 | -2.5 | -3.7 |
| Equity ratio, % | 32.8 | 25.6 | 32.2 |
| Gearing, % | 112.4 | 186.1 | 111.0 |
| Gross investments, EUR 1 000 | 524 | 1 264 | 3 964 |
| Depreciation, EUR 1 000 | 4 909 | 2 116 | 9 835 |
* Compared with the corresponding period of the previous year.
** As of net sales.
SEGMENT REPORTING
Wiping
| EUR 1 000 | 1-3/2012 | 1-3/2011 | Change % | 1-12/2011 |
| Net sales | ||||
| - Codi Wipes | 13 118 | 13 985 | -6.2 | 55 623 |
| - Nonwovens | 85 673 | 14 345 | 497.2 | 99 182 |
| - eliminations | -1 333 | -1 131 | 17.9 | -5 431 |
| Total | 97 458 | 27 200 | 258.3 | 149 374 |
| Operating profit | 3 751 | -298 | -3 072 | |
| % of net sales | 3.8 | -1.1 | -2.0 | |
| Assets | 313 242 | 69 644 | 309 180 | |
| Liabilities | 50 676 | 13 635 | 49 616 | |
| Net assets | 262 567 | 56 010 | 259 564 | |
| Investments | 372 | 630 | 1 910 | |
| Depreciation | 3 818 | 1 324 | 6 524 | |
| Average personnel | 761 | 342 | 418 |
Flexibles
| EUR 1 000 | 1-3/2012 | 1-3/2011 | Change % | 1-12/2011 |
| Net sales | 13 906 | 16 561 | -16.0 | 64 848 |
| Operating profit | -92 | -257 | -69 | |
| % of net sales | -0.7 | -1.6 | -0.1 | |
| Assets | 42 804 | 46 741 | 44 372 | |
| Liabilities | 10 239 | 12 853 | 11 175 | |
| Net assets | 32 565 | 33 888 | 33 197 | |
| Investments | 79 | 591 | 1 851 | |
| Depreciation | 751 | 786 | 3 049 | |
| Average personnel | 446 | 505 | 479 |
Non-allocated items
| EUR 1 000 | 1-3/2012 | 1-3/2011 | 1-12/2011 |
| Net sales | -278 | -203 | -873 |
| Operating profit | -468 | -57 | -1 688 |
| Assets | -20 770 | 5 266 | -15 466 |
| Liabilities | 164 475 | 63 987 | 168 557 |
| Investments | 73 | 43 | 203 |
| Depreciation | 339 | 6 | 262 |
| Average personnel | 9 | 11 | 10 |
NET SALES BY MARKET AREA
| EUR 1 000 | 1-3/2012 | 1-3/2011 | 1-12/2011 | |||||||
| Finland | 6 053 | 6 703 | 27 547 | |||||||
| Europe, other | 48 889 | 32 904 | 141 622 | |||||||
| North and South America | 52 902 | 3 491 | 41 665 | |||||||
| Other countries | 3 243 | 459 | 2 515 | |||||||
| Net sales, total | 111 087 | 43 557 | 213 350 | |||||||
|
QUARTERLY FIGURES EUR 1 000 |
II/2011 | III/2011 | IV/2011 | 1/2012 |
II/2011- 1/2012 |
|||||
| Net sales | ||||||||||
| Wiping | ||||||||||
| - Codi Wipes | 13 586 | 14 936 | 13 116 | 13 118 | 54 756 | |||||
| - Nonwovens | 14 215 | 12 189 | 58 433 | 85 673 | 170 510 | |||||
| - eliminations | -1 911 | -778 | -1 611 | -1 333 | -5 633 | |||||
| Total | 25 890 | 26 347 | 69 937 | 97 458 | 219 633 | |||||
| Flexibles | 17 019 | 16 210 | 15 059 | 13 906 | 62 194 | |||||
| Non-allocated items | -294 | -227 | -149 | -278 | -947 | |||||
| Net sales, total | 42 616 | 42 330 | 84 847 | 111 087 | 280 879 | |||||
|
Operating profit |
||||||||||
| Wiping | 60 | -1 674 | -260 | 3 751 | 1 877 | |||||
| % of net sales | 0.2 | -6.4 | -0.4 | 3.8 | 0.9 | |||||
| Flexibles | 512 | 340 | -69 | -576 | 207 | |||||
| % of net sales | 3.0 | 2.1 | -0.5 | -4.1 | 0.3 | |||||
| Non-allocated items | -230 | -72 | 672 | -468 | -99 | |||||
| Operating profit before non-recurring costs | 342 | -1 406 | 344 | 2 707 | 1 986 | |||||
| % of net sales | 0.8 | -3.3 | -0.4 | 2.4 | 0.7 | |||||
| Non-recurring items | -302 | -492 | -2 702 | 484 | -3 012 | |||||
| Operating profit, total | 40 | -1 899 | -2 359 | 3 190 | -1 027 | |||||
| % of net sales | 0.1 | -4.4 | -2.8 | 2.9 | 0.4 | |||||
| Net financial expenses | -1 457 | -1 255 | -938 | -2 731 | -6 380 | |||||
| Profit before income taxes | -1 417 | -3 153 | -3 297 | 460 | -7 407 | |||||
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is recognized based on the estimated average income tax rate by country.
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, and Ahlstrom Corporation. The company has no investments in associated companies. Salaries paid to the related parties amounted to EUR 286 thousand, share-based payments EUR 6 thousand, unsecured loans EUR 100 thousand, and interest payments EUR 23 thousand.
|
Other related party- transaction EUR 1000 |
2012 |
2011 |
| Sales of goods and services | 2 780 | |
|
Purchases of goods and services Trade and other receivablesTrade and other payables |
6 950 2 003 4 898 |
|
Other related-party transactions are transactions with Ahlstrom.
MOVEMENTS IN BORROWINGS
|
EUR 1 000 |
1-3/2012 | 1-3/2011 |
| Total borrowings on 1 January | 161 730 | 61 282 |
| Current loans from financial institutions on 1 January | 19 929 | 17 000 |
| Change in current loans from financial institutions | 1 542 | |
| Current loans from financial institutions on 31 March | 21 471 | 17 000 |
| Commercial papers on 1 January | 988 | |
| Change in commercial papers | ||
| Commercial papers on 31 March | 988 | |
| Non-current loans on 1 January | 139 961 | 37 294 |
| Change in non-current loans | -5 819 | 2 211 |
| Non-current loans on 31 March | 134 142 | 39 505 |
| Capital loans on 1 January | 1 840 | 6 000 |
| Change in capital loans | -920 | -2 000 |
| Capital loans on 31 March | 920 | 4 000 |
| Total borrowings on 31 March | 156 533 | 61 493 |
CHANGES IN FIXED ASSETS
| 1-3/2012 | 1-3/2011 | 1-12/2011 | ||||
| EUR 1 000 | Tangible | Intangible | Tangible | Intangible | Tangible | Intangible |
| Carrying value at the beginning of the period |
139 886 |
13 146 |
53 873 |
776 |
53 873 | 776 |
| Business combinations | 89 124 | 12 584 | ||||
| Investments | 485 | 39 | 1 149 | 48 | 3 678 | 220 |
| Decreases | -1 377 | -1 040 | -1 226 | |||
| Depreciation | -4 522 | -387 | -2 066 | -50 | -9 399 | -436 |
| Translation differences and other changes |
-1 301 |
11 |
-40 |
-1 |
3 836 | 1 |
| Carrying value at the end of the period |
133 171 |
12 808 |
51 876 |
773 |
139 886 | 13 146 |
CONTINGENT LIABILITIES
| EUR 1 000 | 1-3/2012 | 1-3/2011 | 12/2011 |
| For own debt | |||
| Secured loans | 152 808 | 49 607 | 158 264 |
| Nominal values of pledges | |||
| Real estate mortgages | 23 158 | 24 045 | 22 914 |
| Floating charges | 208 254 | 60 069 | 211 515 |
| Pledged subsidiary shares and loans | 211 559 | 82 982 | 213 554 |
| Other own commitments | |||
| Operating leases, real estates | 28 454 | 9 886 | 29 532 |
| Operating leases, machinery and equipment | 3 244 | 6 072 | 3 482 |
| Guarantee commitments | 1 246 | 1 980 | 1 432 |
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
| EUR 1 000 | 1-3/2012 | 1-3/2011 | 12/2011 |
| Currency derivatives | |||
| Nominal value | 18 434 | 6 427 | 8 501 |
| Fair value | -24 | -34 | 11 |
| Interest rate derivatives | |||
| Nominal value | 74 374 | 12 500 | 76 492 |
| Fair value | -169 | -60 | -216 |
| Electricity derivatives | |||
| Nominal value | 3 245 | 3 314 | 2 860 |
| Fair value | -542 | 647 | -458 |
Helsinki, 25 April 2012
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Mrs Nina Kopola, President and CEO, tel. +358 (0)10 214 300
Mr. Arto Kiiskinen, Vice President and CFO, tel. +358 (0)10 214 300
interim 20120425pdf.pdf
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