Suominen Jan-Sept sales decline 2%

Highlights in July – September 2013:

-Net sales from the continuing operations declined by 2% and amounted to EUR 108.6 million (110.5)

-Operating profit excluding non-recurring items from the continuing operations decreased by 15% to EUR 5.3 million (6.7)

-The divestment of Codi Wipes business unit was closed on 15 July 2013. In this interim report, Codi Wipes is reported in discontinued operations.

- Suominen decided to renew its corporate structure, organization and management system as of 1 January 2014.

- Suominen repeats its previous estimate, announced on 17 July 2013, according to which Suominen expects its net sales of the continuing operations for the full year 2013 to remain at or slightly exceed the level of 2012. Operating profit excluding non-recurring items is expected to improve from year 2012. In 2012, Suominen’s net sales from continuing operations were EUR 410.4 million. Group operating profit excluding non-recurring items, as reported in the Financial Statements of 2012, was EUR 13.7 million

Nina Kopola, President and CEO, commenting on Suominen’s third quarter:

“According to the Consumer Confidence Index, consumers’ confidence in their personal finances continued to strengthen in Europe during the third quarter. The sustained increase in the Consumer Confidence Index seen in the U.S. in the first half of the year leveled off, and the index began to show a slight decline towards the end of the third quarter.

Although both net sales and operating profit fell short of the strong level of the comparison period in the third quarter, Suominen’s business development for the January-September reporting period on the whole has been positive and in line with our plans.

Net sales from the Group’s continuing operations were EUR 108.6 million in the third quarter, and operating profit excluding non-recurring items amounted to EUR 5.3 million. In the Wiping segment, net sales from continuing operations declined 4% from the strong level of the comparison period and were EUR 93.5 million (97.9).

The segment’s operating profit, excluding non-recurring items, was EUR 3.7 million (8.1), which corresponded to 4.0% of net sales. Exceptional costs, which were recognized during the third quarter, arising from challenges related to customer deliveries, as well as from adjustments to Group charges, weakened the operating profit of the Wiping segment. Operating profit of the comparison period was also boosted by an exceptionally favorable product mix.

Net sales of the Flexibles segment grew 19%, despite a tough competitive environment, and totaled EUR 15.1 million. The segment’s operating profit excluding non-recurring items weakened, however, from the comparison period, and remained negative. We are looking into the possibilities of intensifying the business recovery program of the Flexibles segment.