Suominen Corporation announces interim report for January 1 – June 30, 2014 and second quarter results for 2014.

 

Highlights in April – June 2014:

-Net sales increased by 2.4% and amounted to EUR 95.3 million (93.1).

-Operating profit excluding non-recurring items increased by 19.1% to EUR 5.5 million (4.6).

-The investment in the production capacity expansion of flushable nonwovens at Windsor Locks plant in the US was completed as planned.

-After the review period, Suominen divested its Flexibles business area. The deal was closed on 14 July 2014. The enterprise value amounted to EUR 20 million and Suominen recognized a non-recurring loss of approximately EUR 4.5 million in the result of its discontinued operations.

-Suominen repeats its estimate, announced on 11 July 2014, according to which Suominen expects that for the full year 2014, its net sales and operating profit excluding non-recurring items from continuing operations will improve from year 2013. 

 

Suominen’s net sales of the continuing operations (Nonwovens segment and unallocated items) in 2013 amounted to MEUR 373.7 and operating profit excluding non-recurring items was MEUR 19.4 (revised). Earlier, the comparison figures used in the outlook statement were, respectively, MEUR 433.1 and MEUR 18.3, as reported in the Financial Statements of 2013. 

 

President & CEO Nina Kopola comments on Suominen’s second quarter of 2014, “The consumer confidence index in the euro zone strengthened in the second quarter. The positive momentum in the U.S. economy also continued, which led to a rise in consumer confidence. Suominen’s main market areas are North America and Europe.

 

The company’s positive financial development continued into the second quarter. Net sales from Suominen’s continuing operations (not including the divested Flexibles) improved from the comparison period, and operating profit excluding non-recurring items increased by nearly a fifth to EUR 5.5 million, accounting for 5.8% of Suominen’s net sales. Cash flow from operations also grew considerably from the comparison period, amounting to EUR 11.3 million. 

 

In this strategy period – from the start of 2012 – Suominen’s reported operating profit has, with one exception, consistently improved, quarter on quarter. This is a clear indication of the success of our strategy. Additional proof of the successful implementation of the strategy is the achievement of our medium-term financial targets: two out of three of these targets are reviewed on quarterly basis and just like in the first quarter of the year, in the April–June period Suominen reached the target level in these two. Our gearing declined further and was 71.4% (target 40–80%) at the end of June. The ROI from Suominen’s continuing operations was 13.2% (target >10%). 

 

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