Ahlstrom Corporation STOCK EXCHANGE RELEASE 29.4.2009
Key highlights in January-March 2009
* Due to weak demand, net sales decreased by 19.3% compared
to the first quarter of 2008.
* EBIT amounted to EUR -10.7 million (EUR 19.3 million).
* Net cash from operating activities of EUR 20.9 million
virtually covered net cash from investing activities of EUR -21.6
million.
Outlook
* The market environment will continue to be very
challenging in 2009, with a very short-term visibility of the
demand. According to current estimates, the market demand for
Ahlstrom products will continue at a low level.
Key figures
+-------------------------------------------------------------------+
| Key figures, EUR million | Q1/2009 | Q1/2008 | Q4/2008 | 2008 |
| | | | | |
|--------------------------+---------+---------+---------+----------|
| Net sales | 376.1 | 466.2 | 419.0 | 1,802.4 |
|--------------------------+---------+---------+---------+----------|
| EBIT (Operating | | | | |
| profit/loss) | -10.7 | 19.3 | -35.4 | 14.6 |
|--------------------------+---------+---------+---------+----------|
| Profit/loss before taxes | -18.6 | 11.2 | -49.5 | -20.6 |
|--------------------------+---------+---------+---------+----------|
| Earnings per share, EUR | -0.26 | 0.15 | -0.79 | -0.38 |
|--------------------------+---------+---------+---------+----------|
| Return on capital | | | | |
| employed (ROCE),% | -3.3 | 6.4 | -10.8 | 1.4 |
|--------------------------+---------+---------+---------+----------|
| Net cash from operating | | | | |
| activities | 20.9 | 40.7 | 31.5 | 102.4 |
|--------------------------+---------+---------+---------+----------|
| Gearing ratio, % | 99.8 | 64.4 | 95.3 | 95.3 |
+-------------------------------------------------------------------+
Jan Lång, President & CEO, comments on the first quarter of 2009:
- In the first quarter of 2009, Ahlstrom strongly and
successfully retained its long-standing customer relationships. On
the other hand, the global recession had a significant effect on our
financial performance. A number of initiatives were started to adjust
our operations to the changed situation. Despite the challenging
environment, we maintained our activity level in developing new
products.
- In order to adjust to the weak demand, we today announced
the initiation of a further restructuring program with the aim of
gaining annual cost reductions of EUR 50 million. In addition, we
have increased the emphasis on our operational improvement programs
to enhance our cost efficiency. A high priority is also given to
working capital with the target to improve its turnover.
OPERATING ENVIRONMENT
The very challenging market conditions that impacted Ahlstrom's
business in the fourth quarter of 2008 prevailed in the beginning of
this year. Consequently, the demand pattern for most of Ahlstrom's
products continued to weaken in the first quarter of 2009 compared to
the fourth quarter of 2008.
In the Fiber Composites segment*, the markets related to the
automotive, construction and marine industries were exceptionally
challenging due to the decline in these industries, e.g. the
Filtration business area suffered from the significant slowdown in
the automotive industry. More recently, there has been a decrease of
demand for the windmill applications of glass nonwovens materials. On
the positive side, market demand for the food packaging and teabag
materials as well as for nonwovens in medical applications was close
to normal.
In the Specialty Papers segment*, demand was affected by the decline
in construction, automotive, furniture, textile as well as release
and labeling industries.
Market prices for Ahlstrom's main raw materials, natural and
synthetic fibers, chemicals and energy prices, continued to decrease.
FINANCIAL PERFORMANCE IN JANUARY-MARCH 2009
Net sales
+-------------------------------------------------------------------+
| Net sales by segment | Q1/2009 | Q1/2008 | Change % | 2008 |
| and business area | | | | |
|----------------------------+---------+---------+----------+-------|
| Fiber Composites | 208.8 | 252.0 | -17.1 | 987.4 |
|----------------------------+---------+---------+----------+-------|
| Advanced Nonwovens | 45.3 | 44.6 | 1.5 | 189.2 |
|----------------------------+---------+---------+----------+-------|
| Filtration | 65.0 | 79.9 | -18.6 | 306.5 |
|----------------------------+---------+---------+----------+-------|
| Glass & Industrial | | | | |
| Nonwovens | 44.5 | 64.3 | -30.8 | 235.6 |
|----------------------------+---------+---------+----------+-------|
| Home & Personal | | | | |
| Nonwovens | 56.4 | 65.8 | -14.4 | 268.5 |
|----------------------------+---------+---------+----------+-------|
| Specialty Papers | 170.1 | 217.0 | -21.6 | 822.4 |
|----------------------------+---------+---------+----------+-------|
| Release & Label Papers | 63.4 | 81.1 | -21.8 | 314.6 |
|----------------------------+---------+---------+----------+-------|
| Technical Papers | 106.7 | 135.9 | -21.5 | 507.9 |
+-------------------------------------------------------------------+
During the January-March period, a strong decline in the demand for
most of Ahlstrom's products, which became evident towards the end of
2008, continued.
Group net sales totaled EUR 376.1 million (EUR 466.2 million),
decreasing by 19.3% compared to the same period last year.
Net sales of the Fiber Composites segment amounted to EUR 208.8
million (EUR 252.0 million), representing 55% of the Group net sales.
Net sales decreased by 17.1% from the first quarter in 2008. Net
sales were reduced in most business areas due to lower volumes in
most products. On the other hand, net sales grew slightly in the
Advanced Nonwovens business area.
Net sales of the Specialty Papers segment amounted to EUR 170.1
million (EUR 217.0 million), accounting for 45% of the Group net
sales. Net sales were reduced by 21.6% from the first quarter of
2008. Net sales were reduced in both business areas, the Release &
Label Papers and Technical Papers.
+------------------------------------------------------------+
| Net sales by | Q1/2009 | Q1/2008 | Change % | 2008 |
| geographical area | | | | |
|-------------------+---------+---------+----------+---------|
| Europe | 199.5 | 284.7 | -29.9 | 1,015.9 |
|-------------------+---------+---------+----------+---------|
| North America | 105.7 | 102.6 | 3.1 | 442.5 |
|-------------------+---------+---------+----------+---------|
| South America | 36.8 | 42.5 | -13.3 | 189.2 |
|-------------------+---------+---------+----------+---------|
| Asia-Pacific | 26.8 | 27.8 | -3.6 | 119.4 |
|-------------------+---------+---------+----------+---------|
| Rest of the world | 7.3 | 8.7 | -15.8 | 35.5 |
+------------------------------------------------------------+
In terms of geographical areas, net sales declined in all areas
except for North America compared to the first quarter of 2008. The
slight growth in North America was mainly due to the West Carrollton
acquisition in the USA that was included in the company figures
starting from February 2008. In accordance with our ambitions, the
relative share of Europe continued to decrease, being 53% (61%) of
the Group net sales.
Financial result
+------------------------------------------------------------+
| Financial result by segment | Q1/2009 | Q1/2008 | 2008 |
| | | | |
|---------------------------------+---------+---------+------|
| Fiber Composites | | | |
|---------------------------------+---------+---------+------|
| EBIT (Operating profit/loss) | -2.5 | 15.5 | 15.3 |
|---------------------------------+---------+---------+------|
| EBIT (Operating profit/loss), % | -1.2 | 6.2 | 1.5 |
|---------------------------------+---------+---------+------|
| Return on net assets, % | -1.2 | 8.1 | 2.0 |
|---------------------------------+---------+---------+------|
| Specialty Papers | | | |
|---------------------------------+---------+---------+------|
| EBIT (Operating profit/loss) | -3.4 | 5.5 | 10.2 |
|---------------------------------+---------+---------+------|
| EBIT (Operating profit/loss), % | -2.0 | 2.5 | 1.2 |
|---------------------------------+---------+---------+------|
| Return on net assets, % | -3.3 | 4.7 | 2.3 |
+------------------------------------------------------------+
In the first quarter, Group EBIT amounted to EUR -10.7 million (EUR
19.3 million). EBIT was, nevertheless, better than that of the final
quarter of 2008 (EUR -35.4 million and EUR -13.7 million excluding
non-recurring items).
The Group financial performance was burdened by low net sales. In
addition, the performance was somewhat affected by the general price
pressures in the current market environment.
EBIT of the Fiber Composites segment amounted to EUR -2.5 million
(EUR 15.5 million). Most of the weak performance reflects the
exceptionally low level of net sales in the Glass and Industrial
Nonwovens business area and the Home & Personal Nonwovens business
area.
EBIT of the Specialty Papers segment amounted to EUR -3.4 million
(EUR 5.5 million). The main reason for the weak performance was low
demand in both business areas, the Release & Label Papers as well as
in the Technical Papers.
At the beginning of 2009, Ahlstrom announced global restructuring
plans to respond to the decrease in demand. Several measures were
decided to be taken to improve profitability, and to adjust
operations to the challenging market situation. These included
permanent layoffs of approximately 200 people, temporary layoffs at
production sites as well as in the headquarters, cutting down
production globally by market related downtime* procedures and
closing down non-competitive operations in Italy. One third of the
announced permanent layoffs were implemented in the review period.
Ahlstrom took an active approach in adjusting its daily production to
the weak demand. The utilization of downtime in production taken due
to market reasons was 24.5% compared to 7.7% in the first quarter of
2008. Temporary layoffs were an essential part of these adjustments.
Ahlstrom actively pursued various flexible working hour solutions in
different countries, for example the Kurzarbeit program in Germany.
Further, all means to improve cash flow were utilized, including a
lower investment activity than in 2008 and an emphasis on the
improvement of working capital.
Total fixed costs decreased by 5% from the final quarter of 2008, but
did not fully offset the effect of the declining net sales in the
same period.
Total net financial expenses decreased slightly to EUR 8.2 million
(EUR 8.6 million in the first quarter of 2008).
Loss before taxes increased to EUR -18.6 million (profit before taxes
of EUR 11.2 million in the first quarter of 2008).
Tax income amounted to EUR 6.2 million (income tax expenses of EUR
3.4 million in the first quarter of 2008).
Loss for the period was EUR -12.4 million (profit for the period of
EUR 7.8 million in the first quarter of 2008) and earnings per share
(EPS) weakened to EUR -0.26
(EUR 0.15).
Return on capital employed (ROCE) amounted to -3.3% (6.4% in the
first quarter of 2008), and return on equity (ROE) to -8.0% (4.2%).
FINANCING IN JANUARY-MARCH 2009
In the first quarter of 2009, net cash flow from operating activities
decreased by EUR 19.8 million to EUR 20.9 million (EUR 40.7 million
in the first quarter of 2008). The company was able to reduce its net
working capital significantly from the first quarter of 2008. On the
other hand, loss for the period had a substantial negative impact on
the cash flow. In addition, the financial items were EUR -13.3
million compared to EUR 12.5 million in the reference period. The
difference was due to exchange rate hedging that had resulted in
higher than usual foreign exchange gains in the cash flow of the
first quarter of 2008.
Interest-bearing net liabilities increased by EUR 3.2 million from
the first quarter of 2008 to EUR 601.9 million (December 31, 2008:
EUR 598.7 million).
The gearing ratio was 99.8% (December 31, 2008: 95.3%) and the equity
ratio 36.4% (December 31, 2008: 36.8%).
In the period under review, the cost of financing was lower than in
the first quarter of 2008 due to lower interest rates. As of March
31, 2009, Ahlstrom's interest-bearing liabilities amounted to EUR
618.6 million, divided into financing from banks and other financial
institutions of EUR 490.3 million, EUR 114.0 million in borrowings
under the company's Finnish commercial paper program and EUR 14.3
million in commitments under financial leases.
During the reporting period, Ahlstrom was in the process of
finalizing the refinancing of a EUR 200 million medium term credit
facility which will mature in the final quarter of 2009.
CAPITAL EXPENDITURE IN JANUARY-MARCH 2009
Ahlstrom made no major investment decisions during the first quarter
of 2009. Clear majority of the EUR 500 million investments initiated
after the IPO in 2006 were finalized by the end of 2008.
In January-March 2009, Ahlstrom's capital expenditure amounted to EUR
26.9 million (EUR 31.9 million in the first quarter of 2008,
including acquisitions of EUR 11.0 million), representing 7.2% (6.8%)
of Group net sales. The figure included, for example, the on-going
investment project in Gujarat, India, where Ahlstrom is establishing
a new medical nonwovens plant, with operations estimated to start in
the first quarter of 2010. An example of smaller investments was the
renewal of one glass furnace at the Karhula plant in Finland.
Investments in 2009 are estimated to be approximately EUR 70 million
(EUR 167.0 million in 2008).
CHANGES IN GROUP STRUCTURE
The business area organization of the company was changed in 2008.
The organization effective as from January 1, 2009 is as follows. The
Fiber Composites segment comprises the Advanced Nonwovens,
Filtration, Glass & Industrial Nonwovens and Home & Personal
Nonwovens business areas. The Specialty Papers segment comprises the
Release & Label Papers and Technical Papers business areas. This
business area organization is implemented in financial reporting as
from the first quarter of 2009.
CHANGES IN MANAGEMENT
President & CEO
Jan Lång started in his position as the President & CEO of the
company on January 1, 2009. At the same time, Risto Anttonen assumed
the role of Deputy of the President & CEO and continues as a member
of the Corporate Executive Team.
Corporate Executive Team
There were substantial changes in the Corporate Executive Team (CET)
in the first quarter. The current CET is presented at the corporate
website at www.ahlstrom.com.
Following persons started in their new positions on January 1, 2009.
Tommi Björnman, Senior Vice President of the Filtration business
area.
Claudio Ermondi, Senior Vice President, Innovations and Technology.
Paul Marold, Senior Vice President of the Advanced Nonwovens business
area.
Laura Raitio, Senior Vice President of the Glass and Industrial
Nonwovens business area.
In addition, three appointments were announced in the first quarter
of 2009.
On January 9, 2009, Rami Raulas was appointed Senior Vice President,
Sales & Marketing, effective as of February 1, 2009.
On February 6, 2009, Paula Aarnio was appointed Senior Vice
President, Human Resources of Ahlstrom Corporation. She joined
Ahlstrom on April 27, 2009.
On February 6, 2009, Seppo Parvi was appointed Chief Financial
Officer of Ahlstrom Corporation. He is estimated to assume his
responsibilities in July 2009, at the latest.
PERSONNEL
At the end of March 2009, Ahlstrom had 6,052 employees (6,552). The
average number of employees during January-March 2009 was 6,173
(6,541).
PRINCIPAL RISKS AND UNCERTAINTIES
The principal uncertainties that affect Ahlstrom's net sales and
financial performance in the short-term are related to:
- General economic conditions and changes in the demand for end-user
products
- Changes in sales prices
- Changes in raw material prices (e.g., pulp, chemicals and synthetic
fibers)
- Changes in energy prices
- Fluctuations in foreign currency rates.
These factors are described in more detail in Ahlstrom's annual
report 2008, on pages 24-29, and at www.ahlstrom.com.
In accordance with the International Financial Reporting Standards
and Ahlstrom Accounting Principles, Ahlstrom Group regularly reviews
its assets and possible indications of impairment. No impairment
charges were recorded during January-March 2009.
ANNUAL GENERAL MEETING
Ahlstrom Corporation's Annual General Meeting of Shareholders (AGM)
was held on March 25, 2009. The key resolutions of the AGM are
summarized below.
The AGM resolved to distribute a dividend of EUR 0.45 per share for
the fiscal year that ended on December 31, 2008 from the retained
earnings in accordance with the proposal of the Board of Directors.
The AGM approved the financial statements and discharged the members
of the Board of Directors and the CEO from liability for the
financial period January 1 - December 31, 2008.
The AGM confirmed the number of Board members unchanged at seven.
Thomas Ahlström, Sebastian Bondestam, Jan Inborr, Martin Nüchtern,
Bertel Paulig and Peter Seligson were re-elected as members of the
Board of Directors and Anders Moberg, born in 1950, was elected as a
new member as proposed by the Compensation and Nomination Committee
of the Board. The term of the Board of Directors will expire at the
close of the next Annual General Meeting.
PricewaterhouseCoopers Oy was elected as Ahlstrom's auditor as
recommended by the Audit Committee. PricewaterhouseCoopers Oy has
designated Authorized Public Accountant Eero Suomela as auditor in
charge.
The AGM authorized the Board of Directors to repurchase a maximum of
4,500,000 Ahlstrom shares. The shares may be repurchased only through
public trading at the prevailing market price by using unrestricted
shareholders' equity.
The AGM also authorized the Board of Directors to distribute a
maximum of 4,500,000 own shares held by the Company. The Board of
Directors is authorized to decide to whom and in which order the
shares will be distributed. The shares may be used as consideration
in acquisitions and in other arrangements as well as to implement the
Company's share-based incentive plans in the manner and to the extent
decided by the Board of Directors. The Board of Directors also has
the right to decide on the distribution of the shares in public
trading for the purpose of financing possible acquisitions.
The authorizations are valid for 18 months from the close of the
Annual General Meeting but will, however, expire at the close of the
next Annual General Meeting, at the latest.
After the AGM, the organization meeting of the Board of Directors
elected Peter Seligson as Chairman and Bertel Paulig as Vice Chairman
of the Board.
The Board of Directors also appointed the members of the permanent
committees. The members of the Audit Committee are Bertel Paulig
(Chairman), Thomas Ahlström and Martin Nüchtern. The members of the
Compensation and Nomination Committee are Peter Seligson (Chairman),
Sebastian Bondestam and Jan Inborr.
SHARES AND SHARE CAPITAL
Ahlstrom's share is listed on the NASDAQ OMX Helsinki. Ahlstrom has
one series of shares. The share is classified under the Materials
sector and the trading code is AHL1V.
During January-March 2009, a total of 0.7 million Ahlstrom shares
were traded for a total of EUR 4.8 million. The lowest trading price
during the review period was EUR 6.20 and the highest EUR 7.69. The
closing price on March 31, 2009 was EUR 6.21 and market
capitalization was EUR 290 million.
Equity per share of Ahlstrom Group was EUR 12.93 at the end of the
review period (December 31, 2008: EUR 13.46).
Ahlstrom has not used the AGM authorization to repurchase company
shares.
EVENTS AFTER THE REVIEW PERIOD
Restructuring program
Today, on April 29, 2009, Ahlstrom announced the initiation of a
further restructuring program with the aim of gaining annual cost
reductions of EUR 50 million with full effect in 2010.
The company will review its underperforming units and the overall
cost structure, which may impact 400-500 Ahlstrom employees globally.
The decisions related to individual actions will be made during 2009
and will be disclosed respectively. The cost of the program is
estimated to be approximately EUR 40 million in 2009, of which 50%
will be cash-related.
Strategy review process
Ahlstrom's business is currently built on a platform of 18 product
lines worldwide and the main goal of the company strategy has been
strong growth with the special focus on BRIC countries Brazil, China,
India and Russia. The management has recently begun a strategy review
process with the aim of verifying the future direction and ambition
of the company. Conclusions can be expected towards the end of 2009.
OUTLOOK
In 2009, it is anticipated that the market environment will continue
to be challenging with a very short-term visibility of the demand for
Ahlstrom products. Therefore, at the beginning of 2009, Ahlstrom
decided to change its disclosure policy. During a period of major
uncertainty, the outlook only includes forecasts of the business and
market environment. Forecasts of net sales development will be
included when the operating environment has returned to a more
predictable mode.
According to current estimates, the market demand for Ahlstrom
products will continue at a low level. In addition to the announced
restructuring program, the company will adjust its operations to the
market situation, as necessary.
* * *
This interim report has been prepared in accordance with the
International Financial Reporting Standards (IFRS). Comparable
figures refer to the same period last year unless otherwise stated.
The report is unaudited.
This report contains certain forward-looking statements that reflect
the present views of the company's management. Due to the nature of
these statements, they contain uncertainties and risks and are
subject to changes in the general economic situation and in the
company's business.
Helsinki, April 29, 2009
Ahlstrom Corporation
Board of Directors
ADDITIONAL INFORMATION
Jan Lång, President & CEO, tel. +358 (0)10 888 4700
Jari Mäntylä, CFO, tel. +358 (0)10 888 4768
Ahlstrom's President & CEO Jan Lång will present the financial
results in Finnish in a press conference in Helsinki on April 29,
2009 at 10.00 a.m. Finnish time. The conference for media and
analysts will take place at Hotel Scandic Simonkenttä, address
Simonkatu 9, meeting room Espa on the street level, connected to
Restaurant Simonkatu. You are welcome to attend.
In addition, a conference call for analysts and investors will be
held in English on April 29, 2009 at 1.30 p.m. Finnish time. The
discussion will be led by President & CEO Jan Lång. To participate in
the teleconference, please dial +358 (0)9 2313 9201 a few minutes
before the call. Use the title of the conference call: Ahlstrom
conference call. A replay number is available until May 6, 2009. The
number for the replay is +358 (0)9 2314 4681, access code: 833017.
The presentation material will be available at www.ahlstrom.com >
Investors > IR presentations on April 29, 2009 after the first
quarter financial results for 2009 have been published.
AHLSTROM'S FINANCIAL INFORMATION IN 2009
Ahlstrom Corporation will publish its financial information in 2009
as follows:
Interim report January-June: Friday, July 24
Interim report January-September: Wednesday, October 28
Distribution:
NASDAQ OMX Helsinki
www.ahlstrom.com
Main media
Ahlstrom in brief
Ahlstrom is a global leader in the development, manufacture and
marketing of high performance fiber-based materials. Nonwovens and
specialty papers, made by Ahlstrom, are used in a large variety of
everyday products, such as filters, wipes, flooring, labels, and
tapes. Based upon its unique fiber expertise and innovative approach,
the company has a strong market position in several business areas in
which it operates. Ahlstrom's 6,100 employees serve customers via
sales offices and production facilities in more than 20 countries on
six continents. In 2008, Ahlstrom's net sales amounted to EUR 1.8
billion. Ahlstrom's share is quoted on the NASDAQ OMX Helsinki. The
company website is at www.ahlstrom.com.
APPENDIX
Consolidated financial statements
APPENDIX
CONSOLIDATED FINANCIAL STATEMENTS
Financial Statements are unaudited.
INCOME STATEMENT Q1 Q1 Q1-Q4
EUR million 2009 2008 2008
Net sales 376.1 466.2 1,802.4
Other operating income 2.7 3.1 18.7
Expenses -364.2 -425.9 -1,694.2
Depreciation, amortization and impairment
charges -25.3 -24.1 -112.3
Operating profit / loss -10.7 19.3 14.6
Net financial expenses -8.2 -8.6 -34.2
Share of profit / loss of associated companies 0.4 0.5 -1.1
Profit / loss before taxes -18.6 11.2 -20.6
Income taxes 6.2 -3.4 4.5
Profit / loss for the period -12.4 7.8 -16.1
Attributable to
Owners of the parent -12.4 7.2 -17.9
Minority interest - 0.6 1.8
Basic and diluted
earnings per share, EUR -0.26 0.15 -0.38
STATEMENT OF COMPREHENSIVE INCOME Q1 Q1 Q1-Q4
EUR million 2009 2008 2008
Profit / loss for the period -12.4 7.8 -16.1
Other comprehensive income, net of tax:
Translation differences 9.4 -20.5 -37.1
Hedges of net investments in foreign operations -0.9 3.9 6.4
Cash flow hedges 0.0 -0.3 -1.2
Other comprehensive income, net of tax 8.5 -16.9 -32.0
Total comprehensive income for the period -3.8 -9.1 -48.1
Attributable to
Owners of the parent -3.8 -7.7 -52.8
Minority interest - -1.4 4.7
BALANCE SHEET Mar 31, Mar 31, Dec 31,
EUR million 2009 2008 2008
ASSETS
Non-current assets
Property, plant and equipment 759.0 723.9 745.7
Goodwill 174.1 175.7 169.1
Other intangible assets 52.4 55.8 51.6
Investments in associated companies 11.7 13.0 11.4
Other investments 0.2 0.2 0.2
Other receivables 16.0 16.1 15.6
Deferred tax assets 46.8 31.1 40.4
Total non-current assets 1,060.2 1,015.9 1,033.9
Current assets
Inventories 240.0 248.8 252.5
Trade and other receivables 335.9 395.0 356.2
Income tax receivables 7.0 3.4 6.3
Other investments - 0.0 0.0
Cash and cash equivalents 16.6 29.3 58.2
Total current assets 599.7 676.4 673.2
Total assets 1,659.8 1,692.3 1,707.0
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 603.3 708.1 628.1
Minority interest - 33.8 0.0
Total equity 603.3 741.9 628.1
Non-current liabilities
Interest-bearing loans and borrowings 188.0 201.5 188.7
Employee benefit obligations 85.1 84.9 84.6
Provisions 4.3 4.6 4.4
Other liabilities 0.2 0.3 0.2
Deferred tax liabilities 16.9 26.7 16.5
Total non-current liabilities 294.5 318.1 294.4
Current liabilities
Interest-bearing loans and borrowings 430.6 305.7 468.1
Trade and other payables 313.0 285.2 293.3
Income tax liabilities 3.1 9.0 3.5
Provisions 15.4 32.4 19.7
Total current liabilities 762.1 632.4 784.5
Total liabilities 1,056.6 950.4 1,078.9
Total equity and liabilities 1,659.8 1,692.3 1,707.0
STATEMENT OF CHANGES IN EQUITY
1) Issued capital
2) Share premium
3) Non-restricted equity reserve
4) Hedging reserve
5) Translation reserve
6) Retained earnings
7) Minority interest
8) Total equity
Attributable to
owners of the parent
EUR million 1) 2) 3) 4) 5) 6) 7) 8)
Equity at December
31, 2007 70.0 209.3 8.3 0.0 -15.5 444.3 36.0 752.4
Dividends paid and
other - - - - - -0.0 - -0.0
Purchases of
minority interest - - - - - -0.7 -0.7 -1.4
Total comprehensive
income for the
period - - - -0.3 -14.6 7.2 -1.4 -9.1
Equity at March 31,
2008 70.0 209.3 8.3 -0.3 -30.1 450.9 33.8 741.9
Equity at December
31, 2008 70.0 209.3 8.3 -1.2 -49.1 390.9 0.0 628.1
Dividends paid and
other - - - - - -21.0 - -21.0
Purchases of
minority interest - - - - - - -0.0 -0.0
Total comprehensive
income for the
period - - - 0.0 8.5 -12.4 - -3.8
Equity at March 31,
2009 70.0 209.3 8.3 -1.2 -40.7 357.6 - 603.3
STATEMENT OF CASH FLOWS Q1 Q1 Q1-Q4
EUR million 2009 2008 2008
Cash flow from operating activities
Profit / loss for the period -12.4 7.8 -16.1
Adjustments, total 26.5 34.5 131.5
Changes in net working capital 25.8 -0.2 47.2
Change in provisions -4.4 -8.4 -20.0
Financial items -13.3 12.5 -16.8
Taxes paid -1.5 -5.5 -23.4
Net cash from operating activities 20.9 40.7 102.4
Cash flow from investing activities
Acquisition of Group companies - -11.0 -39.0
Purchases of intangible and tangible assets -22.2 -24.4 -131.2
Other investing activities 0.6 9.2 16.9
Net cash from investing activities -21.6 -26.2 -153.4
Cash flow from financing activities
Dividends paid - - -46.7
Changes in loans and other financing activities -41.7 -5.9 136.3
Net cash from financing activities -41.7 -5.9 89.7
Net change in cash and cash equivalents -42.4 8.7 38.7
Cash and cash equivalents at beginning of period 58.2 21.3 21.3
Foreign exchange adjustment 0.8 -0.7 -1.7
Cash and cash equivalents at end of period 16.6 29.3 58.2
KEY FIGURES Q1 Q1 Q1-Q4
2009 2008 2008
Operating profit, % -2.9 4.1 0.8
Return on capital employed (ROCE), % -3.3 6.4 1.4
Return on equity (ROE), % -8.0 4.2 -2.3
Interest-bearing net liabilities, EUR million 601.9 477.9 598.7
Equity ratio, % 36.4 43.8 36.8
Gearing ratio, % 99.8 64.4 95.3
Earnings per share, EUR -0.26 0.15 -0.38
Equity per share, EUR 12.93 15.17 13.46
Cash earnings per share, EUR 0.45 0.87 2.19
Average number of shares during the period,
1000's 46,671 46,671 46,671
Number of shares at the end of the period,
1000's 46,671 46,671 46,671
Capital expenditure, EUR million 26.9 20.9 128.0
Capital employed, at the end of the period,
EUR million 1,221.9 1,249.1 1,285.0
Number of employees, average 6,173 6,541 6,510
ACCOUNTING PRINCIPLES
This interim report has been prepared in accordance with IAS 34,
Interim Financial reporting, as adopted by EU and the accounting
policies set out in the Group's Financial Statements for 2008 except
for the changes below.
Changes in accounting principles
The Group has adopted the following new or amended standards and
interpretations as of January 1, 2009:
- IFRS 8 Operating segments
The Group has two reportable segments: the Fiber Composites segment
and the Specialty Papers segment. The adoption of IFRS 8 does not
have an impact on reportable segments.
- Revised IAS 23 Borrowing costs
The Group has already earlier applied this accounting policy and the
adoption of the revised standard has no impact on the consolidated
financial statements.
- Amendment to IAS 1 A Revised presentation
The amendment has changed the presentation of financial statements.
The income statement is presented in two statements: income statement
and statement of comprehensive income. The statement of changes in
equity includes only transactions with owners and all non-owner
changes are presented in equity as a single line.
The below mentioned new and amended standards and interpretations do
not have an impact on the consolidated financial statements.
- Amendment to IFRS 2 Share-based payment: Vesting Conditions and
Cancellations
- Amendments to IAS 32 and IAS 1 Puttable Financial Instruments and
Obligations Arising on Liquidation
- IFRIC 13 Customer Loyalty Programmes
SEGMENT INFORMATION Q1 Q1 Q1-Q4
EUR million 2009 2008 2008
Fiber Composites 208.8 252.0 987.4
Specialty Papers 170.1 217.0 822.4
Other operations 2.6 5.2 20.2
Internal sales -5.4 -8.0 -27.6
Total net sales 376.1 466.2 1,802.4
Fiber Composites 1.7 0.9 5.6
Specialty Papers 1.3 2.7 9.0
Other operations 2.4 4.4 12.9
Total internal sales 5.4 8.0 27.6
Fiber Composites -2.5 15.5 15.3
Specialty Papers -3.4 5.5 10.2
Other operations -4.9 -1.6 -10.7
Eliminations -0.0 -0.1 -0.2
Operating profit / loss -10.7 19.3 14.6
Fiber Composites 950.6 922.4 947.1
Specialty Papers 604.3 672.3 609.2
Other operations 24.2 33.9 30.4
Eliminations -10.5 -18.3 -15.9
Investments in associated companies 11.8 13.0 11.4
Unallocated assets 79.5 69.0 124.9
Total assets 1,659.8 1,692.3 1,707.0
Segment information is presented according to the IFRS standards.
CHANGES OF PROPERTY, PLANT AND
EQUIPMENT Q1 Q1 Q1-Q4
EUR million 2009 2008 2008
Book value at Jan 1 745.7 747.7 747.7
Acquisitions through business combinations - 3.4 3.9
Additions 26.5 20.3 118.7
Disposals -0.0 -0.9 -3.7
Depreciations and impairment charges -23.8 -22.7 -97.3
Translation adjustment and other changes 10.7 -23.9 -23.5
Book value at end of the period 759.0 723.9 745.7
TRANSACTIONS WITH RELATED PARTIES Q1 Q1 Q1-Q4
EUR million 2009 2008 2008
Transactions with associated companies
Sales and interest income 0.1 0.2 1.0
Purchases of goods and services -0.7 -0.9 -3.6
Trade and other receivables 1.5 0.2 2.6
Trade and other payables 0.2 0.3 0.3
Market prices have been used in transactions with associated
companies.
OPERATING LEASES Mar 31, Mar 31, Dec 31,
EUR million 2009 2008 2008
Current portion 6.2 5.1 6.9
Non-current portion 17.0 13.3 17.1
Total 23.2 18.4 24.0
CONTINGENT LIABILITIES Mar 31, Mar 31, Dec 31,
EUR million 2009 2008 2008
For own liabilities
Other loans
Amount of loans 0.4 0.9 0.5
Book value of pledges 0.4 1.1 0.5
For other own commitments
Guarantees 39.2 23.6 38.7
For commitments of associated companies
Guarantees 3.1 5.2 4.2
Capital expenditure commitments 21.4 23.6 36.2
Other contingent liabilities 3.8 4.3 4.7
QUARTERLY DATA Q1 Q4 Q3 Q2 Q1
EUR million 2009 2008 2008 2008 2008
Net sales 376.1 419.0 451.2 465.9 466.2
Other operating income 2.7 5.6 5.8 4.3 3.1
Expenses -364.2 -419.8 -421.5 -426.9 -425.9
Depreciation, amortization,
impairment
charges -25.3 -40.2 -24.1 -23.9 -24.1
Operating profit / loss -10.7 -35.4 11.3 19.4 19.3
Net financial expenses -8.2 -13.8 -7.1 -4.7 -8.6
Share of profit / loss of
associated companies 0.4 -0.3 -0.7 -0.6 0.5
Profit / loss before taxes -18.6 -49.5 3.5 14.2 11.2
Income taxes 6.2 12.4 -1.0 -3.6 -3.4
Profit / loss for the period -12.4 -37.0 2.5 10.6 7.8
Attributable to
Owners of the parent -12.4 -37.0 2.0 9.9 7.2
Minority interest - - 0.5 0.7 0.6
QUARTERLY DATA BY SEGMENT Q1 Q4 Q3 Q2 Q1
EUR million 2009 2008 2008 2008 2008
Net sales
Fiber Composites 208.8 229.1 249.3 257.0 252.0
Specialty Papers 170.1 191.6 204.0 209.7 217.0
Other operations and eliminations -2.8 -1.7 -2.1 -0.7 -2.8
Group total 376.1 419.0 451.2 465.9 466.2
Operating profit / loss
Fiber Composites -2.5 -24.7 7.7 16.8 15.5
Specialty Papers -3.4 -6.5 6.5 4.7 5.5
Other operations and eliminations -4.9 -4.2 -2.9 -2.0 -1.7
Group total -10.7 -35.4 11.3 19.4 19.3
KEY FIGURES QUARTERLY Q1 Q4 Q3 Q2 Q1
EUR million 2009 2008 2008 2008 2008
Net sales 376.1 419.0 451.2 465.9 466.2
Operating profit / loss -10.7 -35.4 11.3 19.4 19.3
Profit / loss before taxes -18.6 -49.5 3.5 14.2 11.2
Profit / loss for the period -12.4 -37.0 2.5 10.6 7.8
Gearing ratio, % 99.8 95.3 84.8 76.0 64.4
Return on capital employed (ROCE),
% -3.3 -10.8 3.9 6.3 6.4
Earnings per share, EUR -0.26 -0.79 0.04 0.22 0.15
Cash earnings per share, EUR 0.45 0.67 0.53 0.12 0.87
Average number of shares during
the
period, 1000's 46,671 46,671 46,671 46,671 46,671
CALCULATION OF KEY FIGURES
Interest-bearing net liabilities
Interest-bearing loans and borrowings - Cash and cash equivalents -
Other investments (current)
Equity ratio, %
Total
equity/ x
100
Total assets - Advances received
Gearing ratio, %
Interest-bearing net liabilities/ x
100
Total equity
Return on equity (ROE), %
Profit (loss) for the period/ x
100
Total equity (annual average)
Return on capital employed (ROCE), %
Profit (loss) before taxes + Financing
expenses/ x 100
Total assets (annual average) - Non-interest bearing liabilities
(annual average)
Earnings per share, EUR
Profit (loss) for the period attributable to equity holders of
the parent/
Average number of shares during the period
Cash earnings per share, EUR
Net cash from operating activities/
Average number of shares during the period
Equity per share, EUR
Equity attributable to equity holders of the parent/
Number of shares at the end of the period
* Ahlstrom's business is reported in two segments: the Fiber
Composites segment and the Specialty Papers segment. The Fiber
Composites segment comprises the Advanced Nonwovens, Filtration,
Glass & Industrial Nonwovens and Home & Personal Nonwovens business
areas. The Specialty Papers segment covers the Release & Label Papers
and Technical Papers business areas.
* Market related downtime = downtime taken due to market reasons,
lack of orders or too high product stock. Otherwise plants could have
run normally without any other downtime.
Market related downtime % = market related downtime / manned time.
Manned time = available time - unmanned time. Time the machines were
running according to their shift system.
Interim report January-March 2009: Low demand affected Ahlstrom's financial performance
| Source: Ahlstrom
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