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Ahlstrom EGM approves demerger of label & processing units

04 Dec '12

2 min read

Ahlstrom, a global high performance fiber-based materials company, updates its 2012 outlook for net sales and operating profit excluding non-recurring items after the Extraordinary General Meeting (EGM) of the company approved the demerger of the Label and Processing business area.

Ahlstrom's Extraordinary General Meeting of the Shareholders today resolved to approve the demergers of the Label and Processing business in Europe and the Coated Specialties business in Brazil according to the respective demerger plans.

Consequently, the Label and Processing business area will be classified as an asset held for distribution to owners and reported separately as discontinued operations in the Financial Statements Bulletin 2012.

Ahlstrom's view of the market environment remains unchanged. However, the outlook is only adjusted to reflect the resolution by the EGM to approve the demerger of the Label and Processing business area.

Ahlstrom now expects net sales from continuing operations to be EUR 960 -1,040 million and operating profit excluding non-recurring items from continuing operations to be EUR 22 - 32 million in 2012. Ahlstrom had previously estimated, including the Label and Processing business area, net sales to be EUR 1,550 - 1,630 million and operating profit excluding non-recurring items to be EUR 48 - 58 million.

The cost structure of the continuing operations has been adjusted with the costs historically allocated to the discontinued businesses to the extent such costs will remain with Ahlstrom after the demergers.

Earlier this month, Ahlstrom announced that the company intends to right size its cost base to reflect the future size and scope of the company following the closing of the Label and Processing transaction. The company aims to achieve a total of EUR 15 million in cost savings within one year after the closing of the transaction.

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