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Sales slip at nonwovens major Ahlstrom in 2012

31 Jan '13

2 min read

Ahlstrom Corporation released results for the fourth quarter of 2012 and full year 2012.

Continuing operations October-December 2012 compared with October-December 2011
- Net sales EUR 240.1 million (EUR 242.8 million).
- Operating profit EUR 0.1 million (EUR -3.4 million).
- Operating profit excluding non-recurring items EUR -5.0 million (EUR 0.5 million).
- Operating margin excluding non-recurring items -2.1% (0.2%).
- Profit before taxes EUR -8.2 million (EUR -9.5 million).
- Earnings per share EUR -0.23 (EUR -0.15).

October-December 2012 in brief
The poor profitability was due to a shortfall in sales volumes across all key markets, adverse product mix, and increased market-related downtime in production to manage inventory levels.
Ahlstrom's Extraordinary General Meeting approved the demerger of the Label and Processing business, which will be combined with Munksjö AB to form a new global leader in specialty papers. Closing of the first phase of the transaction is expected to take place by the end of the first quarter 2013. It is, however, possible that the completion of the first phase of the planned transaction will not take place until the second quarter of 2013.
A rightsizing initiative was announced to lower costs by EUR 15 million annually to reflect the future size and scope of the company after the completion of the Label and Processing transaction.
To strengthen customer relationships and focus on growth; the Filtration business area was divided into two segments - Advanced Filtration and Transportation Filtration.

Continuing operations January-December 2012 compared with January-December 2011
- Net sales EUR 1,010.8 million (EUR 1,025.8 million).
- Operating profit EUR 18.6 million (EUR 2.1 million).
- Operating profit excluding non-recurring items EUR 17.9 million (EUR 29.6 million).
- Operating margin excluding non-recurring items 1.8% (2.9%).
- Profit before taxes EUR -5.7 million (EUR -22.3 million).
- Earnings per share EUR -0.43 (EUR -0.59).

Dividend proposal
The Board of Directors proposes to the Annual General Meeting that a dividend totaling EUR 0.63 per share be paid for the financial year ended on December 31, 2012.

Outlook for 2013
Net sales from continuing operations are expected to be EUR 980-1,140 million. The operating profit margin excluding non-recurring items from continuing operations is expected to be 2-5% of net sales.

Ahlstrom Corporation