Suominen repeats its previous estimate, disclosed on 10 February 2014, that its net sales and operating profit excluding non-recurring items for the full year 2014 improve from year 2013. In 2013, the net sales were EUR 433.1 million and the reported operating profit excluding non-recurring items EUR 18.3 million (continuing operations).

 

Highlights in January – March 2014:

- Net sales increased by 2.2% and amounted to EUR 114.2 million (111.7).

- Operating profit excluding non-recurring items increased by 42% to EUR 7.0 million (5.0).

- Suominen extended its business operations to South America by acquiring a nonwoven manufacturing unit located in Brazil from Ahlstrom.

- The investment project for the automatization of the Tampere plant of Flexibles business area was started. The total value of the investment is approximately EUR 0.5 million.

 

President & CEO Nina Kopola comments on Suominen’s first quarter of 2014, “The consumer confidence index in the euro zone strengthened towards the end of the first quarter. The upswing in the U.S. economy continued in the first quarter, although there were slight fluctuations in the consumer confidence index during the period. 

 

Suominen kicked off 2014 on a positive note. The expansion of our business to South America through a transaction that was agreed on with Ahlstrom in January and confirmed in February was an important milestone for us. 

 

The acquisition of the plant located in Paulínia, Brazil gives us a foothold in the highly promising South American markets and further reinforces our leading position as a global manufacturer of nonwovens for wiping products. The enterprise value of the transaction was EUR 17.5 million, and we financed it through a convertible hybrid bond. The bond was issued in February and it was oversubscribed. 

 

The first quarter of 2014 was positive for Suominen also in the light of the company’s financial figures. Suominen’s net sales increased 2% to EUR 114.2 million. Operating profit, excluding non-recurring items, grew 42% to EUR 7.0 million, which is an all-time-high operating profit for Suominen in a quarter. 

 

The improvement in profitability demonstrates the effectiveness of our chosen strategy: We have succeeded in increasing the share of products with higher added value in our portfolio. In addition, the favorable development of our operating profit was boosted by the Flexibles segment’s positive result in the first quarter and by the cost-conscious approach that has been adopted Group-wide.

 

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