Ahlstrom Corporation STOCK EXCHANGE RELEASE 10.8.2011 at 09.45
Continuing operations April-June 2011 compared with April-June 2010:
* Net sales EUR 423.7 million (EUR 424.9 million).
* Operating profit EUR 22.1 million (EUR 28.2 million) and operating profit
excluding non-recurring items EUR 20.4 million (EUR 27.4 million).
* Operating margin excluding non-recurring items 4.8% (6.4%).
* Profit before taxes EUR 14.3 million (EUR 21.0 million).
* Earnings per share EUR 0.16 (EUR 0.26).
Highlights in April-June 2011
* Ahlstrom announced a EUR 30 million investment in wallcover materials
manufacturing in China.
* The company signed a five-year EUR 250 million revolving credit facility.
Continuing operations January-June 2011 compared with January-June 2010:
* Net sales EUR 846.2 million (EUR 806.6 million).
* Operating profit EUR 41.6 million (EUR 41.3 million) and operating profit
excluding non-recurring items EUR 40.0 million (EUR 40.2 million).
* Operating margin excluding non-recurring items 4.7% (5.0%).
* Profit before taxes EUR 28.5 million (EUR 27.5 million).
* Earnings per share EUR 0.30 (EUR 0.33).
Events after the review period: Divestment of Home and Personal business area
* Ahlstrom signed an agreement to divest its Home and Personal business area
to Suominen Corporation. The total value of the transaction is approximately
EUR 170 million.
Outlook for 2011
* On August 4, Ahlstrom updated its outlook for 2011 following the agreement
to divest its Home and Personal business area. The outlook is in line with
the previous one given on July 18, 2011, however excluding discontinued
operations. The company expects net sales from continuing operations to be
EUR 1,580-1,740 million and operating profit excluding non-recurring items
of EUR 67-87 million.
Jan Lång, President & CEO:
- We accelerated the execution of our strategy. The divestment of Home and
Personal enables us to further drive profitable growth in businesses chosen as
our strategic priorities. Also, the development programs we have implemented to
strengthen the way we manage the business are being executed solidly. In terms
of growth, we took further steps in Asia as we announced investments to start
the production of high-quality wallcover materials and specialty reinforcements
to the wind energy industry in China.
- Our teams have been working with high intensity and good success over the past
year to actively manage pricing and safeguard our profitability. However, given
the challenging market environment we were not able to fully compensate for the
increased costs, particularly related to synthetic fibers and chemicals during
the second quarter. We assume that the business environment will continue to be
challenging, given the current instability of the global economy. The recent
turbulence in the global markets has reduced visibility going forward.
- We have addressed our cost structure through group-wide development programs
to improve manufacturing efficiency, particularly in reducing production waste
and sourcing costs. Going forward, we will continue to address this with
increased vigor and strive to streamline our overall cost base in the supply
chain.
Key figures from continuing operations
EUR million Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Net sales 423.7 424.9 -0.3 846.2 806.6 4.9
Operating profit 22.1 28.2 -21.5 41.6 41.3 0.7
% of net sales 5.2 6.6 4.9 5.1
Operating profit excl.
NRI 20.4 27.4 -25.6 40.0 40.2 -0.4
% of net sales 4.8 6.4 4.7 5.0
Profit before taxes 14.3 21.0 -32.0 28.5 27.5 3.6
Profit for the period 8.5 13.6 -37.3 16.8 18.2 -7.5
Earnings per share 0.16 0.26 0.30 0.33
Return on capital
employed, % 10.2 12.4 9.4 9.0
Capital expenditure 12.5 4.7 164.1 17.3 11.2 54.6
Number of personnel,
at the end of period 5,217 5,237 -0.4 5,217 5,237 -0.4
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Home and Personal business area is reported separately as discontinued
operations.
Operating environment
The overall demand remained stable in the second quarter 2011, however the
market slowed down somewhat towards the end of the review period. The demand for
wallcover, and flooring materials continued to grow in the quarter, while demand
for flexible packaging papers and release liners declined.
Cost inflation related to the main raw materials used by Ahlstrom continued in
the review period. Prices of synthetic fibers, such as polyester and
polypropylene, and chemicals peaked during the second quarter and remained at
high levels at the end of the period. Pulp prices remained at the high levels of
the first quarter 2011.
In March, the European Commission imposed a lower level antidumping duty on
imports of certain glassfiber products originating from the People's Republic of
China to the European Union. This had a negative impact on the European
glassfiber market.
Development of net sales from continuing operations
Net sales by business
area Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Building and Energy 77.0 68.3 12.8 155.6 130.3 19.4
Filtration 83.8 88.5 -5.4 166.1 167.5 -0.8
Food and Medical 90.9 91.7 -0.9 184.3 173.8 6.1
Label and Processing 183.2 188.1 -2.6 364.8 360.1 1.3
Other functions* and
eliminations -11.2 -11.7 -24.7 -25.2
Total net sales 423.7 424.9 -0.3 846.2 806.6 4.9
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* Other functions include financing and taxation-related items, as well as
earnings and costs belonging to holding and sales companies. Home and Personal
business area is reported separately as discontinued operations.
April-June 2011 compared with April-June 2010
Ahlstrom's second-quarter 2011 net sales decreased 0.3% to EUR 423.7 million,
compared with EUR 424.9 million in the second quarter 2010.
On a comparable basis, net sales increased by about 4.8% due to price increases
and product mix. Currency effect decreased net sales by about 3.7% and higher
volumes increased net sales by about 1.7%. Divestments of the Dust Filtration
business and the Altenkirchen plant announced at the end of 2010 reduced net
sales by about 3.1%.
Total sales volumes fell 1.5%. On a comparable basis, volumes increased by
0.4%. Divestments of the Dust Filtration business, part of Filtration, and the
Altenkirchen plant, part of Label and Processing, had a total negative impact of
about 1.9% on sales volumes. Sales volumes rose in the Building and Energy
(+8.8%) and Food and Medical (+3.3%) business areas. Filtration (-1.5%) and
Label and Processing (-4.6%) reported a decline.
January-June 2011 compared with January-June 2010
Net sales in January-June 2011 increased 4.9% to EUR 846.2 million, compared
with EUR 806.6 million in January-June 2010.
On a comparable basis, net sales increased by about 6.6% due to price increases
and product mix. Currency effect decreased net sales by about 1.2% and higher
sales volumes increased net sales by about 2.8%. Divestments of the Dust
Filtration business and the Altenkirchen plant announced at the end of 2010
reduced net sales by about 3.3%.
Result and profitability from continuing operations
Financial result by
segment Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Building and Energy
Operating profit -0.5 1.4 -139.3 1.8 -0.4 579.3
% of net sales -0.7 2.0 1.2 -0.3
Operating profit excl.
NRI -0.5 1.4 -139.3 1.8 -0.4 579.3
% of net sales -0.7 2.0 1.2 -0.3
Filtration
Operating profit 6.6 9.4 -29.3 13.7 16.8 -18.6
% of net sales 7.9 10.6 8.2 10.0
Operating profit excl.
NRI 6.1 9.4 -35.0 14.3 16.8 -15.0
% of net sales 7.3 10.6 8.6 10.0
Food and Medical
Operating profit 2.9 5.3 -46.4 5.8 9.3 -37.6
% of net sales 3.1 5.8 3.2 5.4
Operating profit excl.
NRI 2.9 4.5 -37.1 5.8 8.5 -31.8
% of net sales 3.1 5.0 3.2 4.9
Label and Processing
Operating profit 10.5 14.2 -25.7 16.7 19.5 -14.1
% of net sales 5.8 7.5 4.6 5.4
Operating profit excl.
NRI 8.8 14.2 -38.0 15.0 19.5 -22.9
% of net sales 4.8 7.5 4.1 5.4
Other functions* and
eliminations
Operating profit 2.7 -2.1 3.6 -3.9
Ahlstrom Group total
Operating profit 22.1 28.2 -21.5 41.6 41.3 0.7
% of net sales 5.2 6.6 4.9 5.1
Operating profit excl.
NRI 20.4 27.4 -25.6 40.0 40.2 -0.4
% of net sales 4.8 6.4 4.7 5.0
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* Other functions include financing and taxation-related items, as well as
earnings and costs belonging to holding and sales companies. Home and Personal
business area is reported separately as discontinued operations.
April-June 2011 compared with April-June 2010
Ahlstrom's second-quarter 2011 operating profit was EUR 22.1 million (EUR 28.2
million) including non-recurring items of EUR 1.8 million (EUR 0.8 million).
Operating profit excluding non-recurring items was EUR 20.4 million (EUR 27.4
million). The 2010 figure was favorably impacted by a gain of approximately EUR
4.2 million from selling carbon dioxide emission rights. In April-June 2011, the
figure was EUR 0.2 million.
The most significant non-recurring items in the second quarter 2011 were the
following:
* Label and Processing booked a gain of approximately EUR 1.9 million from the
asset sale of its Ascoli plant in Italy. The plant was closed in 2008.
There were no significant non-recurring items in the second quarter 2010.
The operating profit was negatively impacted as increased raw material costs
were not fully compensated by higher selling prices. The ramp-up and
commercialization of the teabag materials line in Chirnside, the La Gere plant,
the hybrid wallcover line in Turin and the Mundra plant, which were part of the
2007 and 2008 investment program, continued. The challenges of the new lines in
Chirnside and Turin continued to have a negative impact on profitability from
the comparison period. The medical materials plant in Mundra and La Gere, part
of Label and Processing, improved profitability from the comparison period, but
are still behind their targets. Improved efficiency, particularly in
manufacturing and sourcing, had a positive impact on profitability.
Ahlstrom's market related downtime in production was 5.3% in the second quarter
2011 compared with 8.5% in the comparison period.
Profit before taxes was EUR 14.3 million (EUR 21.0 million).
Income taxes amounted to EUR 5.8 million (EUR 7.4 million).
Profit for the period was EUR 8.5 million (EUR 13.6 million). Earnings per share
were EUR 0.16 (EUR 0.26).
January-June 2011 compared with January-June 2010
Ahlstrom's January-June 2011 operating profit was EUR 41.6 million (EUR 41.3
million) including non-recurring items of EUR 1.6 million (EUR 1.1 million).
Operating profit excluding non-recurring items was EUR 40.0 was (EUR 40.2
million). The 2010 figure was favorably impacted by a gain of approximately EUR
4.2 million from selling carbon dioxide emission rights. In January-June 2011,
the figure was EUR 0.2 million.
The most significant non-recurring items in January-June 2011 in addition to the
one mentioned above were the following:
* Filtration booked a loss of EUR 1.1 million after the flooding at Louveira
in the first quarter. The loss was related to damages not covered by
insurance policy after an initial reimbursement and additional freight
costs. About EUR 0.5 million was reversed in the second quarter following
the settlement of an insurance claim.
* In other functions, Ahlstrom booked a gain of EUR 1.0 million related to the
sale of the Wuxi plant in China.
There were no significant non-recurring items in the first half 2010.
Ahlstrom's market related downtime in production in January-June 2011 was 5.6%
compared with 8.7% in the comparison period.
Profit before taxes was EUR 28.5 million (EUR 27.5 million).
Income taxes amounted to EUR 11.7 million (EUR 9.3 million).
Profit for the period was EUR 16.8 million (EUR 18.2 million). Earnings per
share were EUR 0.30 (EUR 0.33).
Discontinued operations
Following the agreement to divest Home and Personal to Suominen, the segment has
been classified as an asset held for sale and reported separately as
discontinued operations as a result.
In April-June 2011, the loss for the period from discontinued operations was EUR
17.1 million, compared with a profit of EUR 1.5 million in the comparison
period. The 2011 figure includes an impairment loss and cost to sell of EUR
18.4 million after tax related to the divestment.
In January-June 2011, the loss for the period from discontinued operations was
EUR 15.8 million euros (profit EUR 2.4 million).
Result including discontinued operations
In April-June 2011, the loss for the period including discontinued operations
was EUR 8.6 million (EUR 15.1 million profit). Earnings per share were EUR -0.21
(EUR 0.29).
Return on return on equity (ROE) was -5.3% (8.6%).
In January-June 2011, the profit for the period including discontinued
operations was EUR 1.0 million (EUR 20.6 million). Earnings per share were EUR
-0.04 (EUR 0.38).
Return on equity (ROE) was 0.3% (5.8%).
Business Area review
Building and Energy
EUR million Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Net sales 77.0 68.3 12.8 155.6 130.3 19.4
Operating profit -0.5 1.4 -139.3 1.8 -0.4 579.3
% of net sales -0.7 2.0 1.2 -0.3
Operating profit excl.
NRI -0.5 1.4 -139.3 1.8 -0.4 579.3
% of net sales -0.7 2.0 1.2 -0.3
RONA, % -1.5 3.5 2.4 -0.5
Sales volumes, 000s
tons 33.9 31.2 8.8 67.7 60.5 11.9
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Net sales in April-June 2011 rose 12.8% to EUR 77.0 million, compared with EUR
68.3 million in April-June 2010. The increase resulted from the continued sales
volume growth in the wallcover and flooring material markets, and higher selling
prices. Operating loss excluding non-recurring items was EUR 0.5 million (EUR
1.4 million profit). The results was burdened by the ramp-up costs of the hybrid
wallcover line in Turin, Italy, higher fiber costs and lower sales volumes in
the wind mill industry in North America. Lowered antidumping duty on imports of
certain glassfiber products from People's Republic of China to the European had
negative impact on European market and also affected profitability of Building
and Energy. No non-recurring items were booked.
In January-June 2011, net sales were EUR 155.6 million (EUR 130.3 million) and
operating profit excluding non-recurring items EUR 1.8 million (EUR 0.4 million
loss).
Filtration
EUR million Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Net sales 83.8 88.5 -5.4 166.1 167.5 -0.8
Operating profit 6.6 9.4 -29.3 13.7 16.8 -18.6
% of net sales 7.9 10.6 8.2 10.0
Operating profit excl.
NRI 6.1 9.4 -35.0 14.3 16.8 -15.0
% of net sales 7.3 10.6 8.6 10.0
RONA, % 16.3 20.1 16.7 18.6
Sales volumes, 000s
tons 29.2 29.7 -1.5 57.7 57.7 0.0
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Net sales in April-June 2011 decreased 5.4% to EUR 83.8 million, compared with
EUR 88.5 million in April-June 2010 as adverse currency effects and divested
businesses offset higher selling prices. Net sales were supported by
transportation filtration sales in South America and Asia. Operating profit
excluding non-recurring items fell to EUR 6.1 million (EUR 9.4 million) as
increased raw material costs, changes in sales mix and adverse currency effect
mitigated improved efficiency and higher selling prices. Operating profit
amounted to EUR 6.6 million (EUR 9.4 million).
In January-June 2011, net sales were EUR 166.1 million (EUR 167.5 million) and
operating profit excluding non-recurring items EUR 14.3 million (EUR 16.8
million).
Food and Medical
EUR million Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Net sales 90.9 91.7 -0.9 184.3 173.8 6.1
Operating profit 2.9 5.3 -46.4 5.8 9.3 -37.6
% of net sales 3.1 5.8 3.2 5.4
Operating profit excl.
NRI 2.9 4.5 -37.1 5.8 8.5 -31.8
% of net sales 3.1 5.0 3.2 4.9
RONA, % 5.7 9.7 5.7 8.6
Sales volumes, 000s
tons 33.3 32.3 3.3 67.0 63.2 6.1
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Net sales in April-June 2011 fell 0.9% to EUR 90.9 million, compared with EUR
91.7 million in April-June 2010. The decline was due to adverse currency
effects. Higher sales volumes of medical applications had a positive impact on
net sales. Operating profit excluding non-recurring items decreased to EUR 2.9
million (EUR 4.5 million). The result was negatively impacted by higher raw
material costs and unfavorable mix in some product segments. The Mundra plant in
India improved its performance, albeit still not reaching positive operating
profit. The teabag material line in Chirnside, U.K., continued to weaken
profitability as well. Operating profit was EUR 2.9 million (EUR 5.3 million).
In January-June 2011, net sales were EUR 184.3 million (EUR 173.8 million) and
operating profit excluding non-recurring items EUR 5.8 million (EUR 8.5
million).
Label and Processing
EUR million Q2/2011 Q2/2010 Change, % Q1-Q2/2011 Q1-Q2/2010 Change, %
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Net sales 183.2 188.1 -2.6 364.8 360.1 1.3
Operating profit 10.5 14.2 -25.7 16.7 19.5 -14.1
% of net sales 5.8 7.5 4.6 5.4
Operating profit excl.
NRI 8.8 14.2 -38.0 15.0 19.5 -22.9
% of net sales 4.8 7.5 4.1 5.4
RONA, % 15.3 18.8 12.1 12.7
Sales volumes, 000s
tons 149.7 156.9 -4.6 297.8 313.1 -4.9
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Net sales in April-June 2011 fell 2.6% to EUR 183.2 million, compared with EUR
188.1 million in April-June 2010. The decline was due to lower sales volumes in
flexible packaging papers and the divestment of the Altenkirchen plant in 2010.
Higher sales volumes of graphics & industrial papers and metalized labels had a
positive effect on net sales. Operating profit excluding non-recurring items
decreased to EUR 8.8 million (EUR 14.2 million) due to lower sales volumes and
as increased raw material costs were not fully compensated by higher selling
prices. Changes in the geographical sales mix also effected profitability. The
La Gere plant improved performance and reported a positive result in the review
period. Operating profit amounted to EUR 10.5 million (EUR 14.2 million).
In January-June 2011, net sales were EUR 364.8 million (EUR 360.1 million) and
operating profit excluding non-recurring items EUR 15.0 million (EUR 19.5
million).
Financing (including discontinued operations)
Net cash flow from operating activities in January-June 2011 amounted to EUR
46.2 million (EUR 77.2 million), and cash flow after investments was EUR 30.0
million (EUR 64.1 million). In April-June 2011, net cash flow from operating
activities was EUR 27.6 million (EUR 45.1 million).
During January-June 2011, operative working capital increased by EUR 28.5
million to EUR 222.8 million from the end of 2010, but remained clearly below
the year ago level. Its turnover rose by four days and was 41 days at the end of
the review period. At the end of the second quarter 2010, operative working
capital stood at EUR 241.0 million and turnover days was 45.
Ahlstrom's interest-bearing net liabilities increased by EUR 8.3 million from
the end of 2010 to EUR 338.4 million (December 31, 2010: EUR 330.1 million).
Ahlstrom's interest bearing liabilities amounted to EUR 365.0 million. The
duration of the loan portfolio (average interest rate fixing period) was 22
months and the capital weighted average interest rate was 4.17%. The average
maturity of the loan portfolio was 34 months.
In January-June 2011, net financial expenses were EUR 12.0 million (EUR 13.5
million). Net financial expenses include net interest expenses of EUR 8.0
million (EUR 11.3 million), financing exchange rate losses of EUR 1.2 million
(EUR 0.5 million gain), and other financial expenses of EUR 2.7 million (EUR
2.7 million).
In April-June 2011, net financial expenses were EUR 6.7 million (EUR 6.9
million). Net financial expenses include net interest expenses of EUR 4.3
million (EUR 5.6 million), financing exchange rate losses of EUR 0.8 million
(EUR 0.1 million gain), and other financial expenses of EUR 1.6 million (EUR
1.4 million).
The company's liquidity continues to be good. At the end of the review period,
its total liquidity, including cash, unused committed credit facilities and cash
pool limits was about EUR 402 million. In addition, the company had uncommitted
credit facilities of about EUR 98 million available.
In June, Ahlstrom signed a new EUR 250 million five-year revolving credit
facility to be used for general corporate purposes. This facility refinances the
company's existing EUR 200 million revolving credit facility signed in 2009.
The gearing ratio increased to 52.6% (December 31, 2010: 46.9%). The equity
ratio was 42.2% (December 31, 2010: 45.6%).
Capital expenditure (including discontinued operations)
Ahlstrom's capital expenditure excluding acquisitions totaled EUR 20.0 million
in January-June 2011 (EUR 11.8 million). In April-June 2011, investments
totalled EUR 14.0 million (EUR 5.3 million).
In June, Ahlstrom announced that it will invest a total of EUR 7 million at its
Stenay plant in France to be able to produce lower grammage grades, enhancing
the quality of one-side coated papers for metalized labels and flexible
packaging.
In June, Ahlstrom announced that it will invest a total of EUR 30 million in a
new wallcover substrates production line at its Binzhou plant in China, where
the company is already manufacturing filtration materials. Deliveries from the
new line are expected to start in early 2013.
In May, Ahlstrom announced that it will invest in additional capacity in
transportation filtration materials at its site in Louveira, Brazil. The
investment will be completed in the first quarter of 2012.
Changes in the Executive Management Team
Patrick Jeambar, Executive Vice President, Label and Processing Business Area,
will step down from the Executive Management Team as of September 1, 2011.
Daniele Borlatto, Vice President, Release & Label and Supply Chain, will succeed
Jeambar as the Executive Vice President, Label and Processing Business Area. He
will take over his new role on September 1, 2011, when he will also become a
member of the Executive Management Team reporting to Jan Lång, President and
CEO.
Luc Rousselet, Executive Vice President, Supply Chain, and Paul H. Stenson,
Executive Vice President, Business Development, started as members of the
Executive Management Team in June as announced earlier.
Implementation of the new operating model
In conjunction with the reorganization last year, Ahlstrom started the
implementation of its new operating model. By strengthening and harmonizing
global processes the company aims to increase its customer focus and enhance the
management of the entire product and supply chain. During the first half of
2011, development programs aimed at enhancing the planning and harmonization of
processes continued.
Waste management program
The project to reduce material waste in manufacturing launched in 2010 has
progressed as planned. Ahlstrom aims to reduce production waste volume by 15
percent, which equals to annual savings of approximately EUR 20 million as of
2012. By the end of June 2011, the project had been launched at 27 plants out of
the total of 37, and the intention is to expand it to all production units by
the end of this year.
Personnel
Ahlstrom employed on average 5,743 people[1] in January-June 2011 (5,789), and
5,795 people (5,799) at the end of the period. The number of personnel increased
through an acquisition in China and the hiring of new employees in India. The
number of personnel has decreased due to the earlier announced unit divestments.
At the end of the period, the highest numbers of employees were in the United
States (22.5%), France (21.1%), Italy (12.4%), Finland (11.8%), Brazil (6.9%)
and Germany (6.8%).
Authorizations of the Board of Directors
The Annual General Meeting of Shareholders held on March 30, 2011 authorized the
Board of Directors to repurchase and distribute the company's own shares as well
as to accept them as pledge as proposed by the Board of Directors. The number of
shares to be repurchased or accepted as pledge by virtue of the authorization
shall not exceed 4,000,000 shares in the company, yet always taking into account
the limitations set forth in the Companies' Act as regards the maximum number of
shares owned by or pledged to the company or its subsidiaries. The shares may be
repurchased only through public trading at the prevailing market price by using
unrestricted shareholders' equity. The rules and guidelines of NASDAQ OMX
Helsinki Oy and Euroclear Finland Ltd shall be followed in the repurchase.
The authorization includes the right for the Board of Directors to decide upon
all other terms and conditions for the repurchase of the company's own shares,
or their acceptance as pledge, including the right to decide on the repurchase
of the company's own shares otherwise than in proportion to the shareholders'
holdings in the company.
By virtue of the authorization, the Board of Directors has the right to resolve
to distribute a maximum of 4,000,000 own shares held by the company. The Board
of Directors was authorized to decide to whom and in which order the own shares
will be distributed. The Board of Directors may decide on the distribution of
the company's own shares otherwise than in proportion to the existing pre-
emptive right of shareholders to purchase the company's own shares. The shares
may be used e.g. 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 has also
the right to decide on the distribution of the shares in public trading for the
purpose of financing possible acquisitions. The authorization also includes the
right for the Board of Directors to resolve on the sale of the shares accepted
as a pledge. The authorization includes the right for the Board of Directors to
resolve upon all other terms and conditions for the distribution of the shares
held by the Company.
The authorizations for the Board of Directors to repurchase the Company's own
shares, to distribute them as well as to accept them as pledge 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.
The company holds a total of 25,005 own shares, corresponding to approximately
0.05% of the total shares and votes. They were repurchased for the
implementation of the company's share-based incentive programs.
Shares and share capital
Ahlstrom's shares are listed on the NASDAQ OMX Helsinki. Ahlstrom has one series
of shares. The share is classified under NASDAQ OMX's Materials sector and the
trading code is AHL1V.
During January-June 2011, a total of 4.14 million Ahlstrom shares were traded
for a total of EUR 70.0 million. The lowest trading price was EUR 14.75 and the
highest EUR 18.23. The closing price on June 30, 2011 was EUR 16.07. The market
capitalization at the end of the review period was EUR 744.8 million, excluding
the shares owned by the parent company and Ahlcorp Oy, which is a management
ownership company.
Ahlstrom Group's equity per share was EUR 12.12 at the end of the review period
(December 31, 2010: EUR 13.48).
Events after the review period
On July 18, 2011, Ahlstrom updated its outlook for operating profit in 2011. The
company expected its operating profit excluding non-recurring items for 2011 to
be lower than earlier anticipated due to continuing cost inflation in raw
materials prices. The estimate for the full year net sales was maintained.
On July 26, 2011, Claudio Ermondi, Executive Vice President, Product &
Technology Development and member of the Executive Management Team, resigned
from Ahlstrom with immediate effect. His duties and responsibilities were
transferred to Paul Stenson.
Divestment of Home and Personal business area
On August 4, 2011, Ahlstrom signed an agreement to divest its wipes fabrics
business area, Home and Personal, to Suominen Corporation. The total value of
the transaction is approximately EUR 170 million. Under the agreement, Ahlstrom
sells the operations of its Home and Personal business area to Suominen and
receives a total of EUR 170 million in cash, of which Ahlstrom has committed to
use a total of EUR 30 million to subscribe for shares in Suominen in a directed
share issue. Home and Personal is reported separately as discontinued
operations. At the same time, Ahlstrom updated its outlook for the continuing
operations.
Ahlstrom will become the largest shareholder in Suominen with a minimum stake of
20% and a maximum stake of 28.2% depending on the size of the share issue. The
cash portion of the deal will be adjusted accordingly. Ahlstrom has agreed to a
two-year lock-up period for a minimum of 20% ownership in holding its Suominen
shares.
Outlook
The overall demand for most of Ahlstrom's products is forecast to remain stable.
The company will actively seek to increase selling prices in order to cover the
recent and possible future increases in raw material costs. However, due to the
slowdown in the market towards the end of the second quarter 2011, it has been
more challenging to successfully implement price increases.
Ahlstrom estimates net sales from continuing operations for the current year to
amount to EUR 1,580-1,740 million. Operating profit excluding non-recurring
items from continuing operations is estimated to be EUR 67-87 million. The
outlook is in line with the previous one given on July 18, 2011, however
excluding discontinued operations.
In 2011, investments excluding acquisitions are estimated to be approximately
EUR 100 million (EUR 51.1 million in 2010). The figure includes investments that
have already been announced in 2010 and 2011, such as the filtration material
capacity increase in Turin, and the crepe paper plant investment together with a
joint venture partner in China and the wallcover materials line in China.
Short-term risks
Economic growth in Asia and other emerging markets has continued to be strong,
while that in Europe and North America seems to have slowed down somewhat from
the beginning of the year. However, the situation varies between different
regions. The possible contagion of the sovereign debt crisis in Europe poses an
additional risk to economic growth and sales development at Ahlstrom.
Global inflation has accelerated at a faster pace than earlier anticipated, led
by higher oil and commodity prices. This may impact disposable incomes adversely
and slow down economic growth, and thus the demand for products manufactured by
Ahlstrom might be affected accordingly.
The increased uncertainty related to the global economic growth and cost
inflation makes it more difficult to forecast future developments.
Ahlstrom's main raw materials are natural fibers, mainly pulp, synthetic fibers
and chemicals. The company is one of the world's largest buyers of market pulp.
Forecasting raw material costs linked directly to the oil price is difficult due
to geopolitical developments.
If global economic growth slows down further, the planned price increases may
not materialize and even the risk of reductions in selling prices grows. If the
prices of raw materials remain at a high level or continue to rise, and the
increased raw material costs cannot be passed onto selling prices, maintaining
the current profitability level might be compromised.
The general risks of Ahlstrom's business operations are described in greater
detail on the company website at www.ahlstrom.com and in the report by the Board
of Directors in the company's Annual Report 2010. The risk management process is
also described in the Corporate Governance Statement available on the company
website.
* * *
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.
This report contains certain forward-looking statements that reflect the present
views of the company's management. The statements contain uncertainties and
risks and are thus subject to changes in the general economic situation and in
the company's business.
Helsinki, August 10, 2011
Ahlstrom Corporation
Board of Directors
Additional information
Jan Lång, President & CEO, tel. +358 (0)10 888 4700
Seppo Parvi, CFO, tel. +358 (0)10 888 4768
Ahlstrom's President & CEO Jan Lång and CFO Seppo Parvi will present the
January-June 2011 interim report in a Finnish-language press and analyst
conference in Helsinki today, August 10, 2011, at 1:30 p.m. (CET+1). The
conference will take place at Event Arena Bank, Unioninkatu 20, 2nd floor. The
meeting room will be announced on the display board in the lobby.
In addition, President & CEO Lång and CFO Parvi will hold a conference call in
English for analysts, investors and representatives of the media today, August
10, 2011 at 5:00 p.m. (CET+1). To participate in the conference call, please
dial (09) 2319 4250 in Finland or +44 (0)20 7136 6283 outside Finland a few
minutes before the conference begins. The access code is 6345530.
The conference call can also be listened to live on the Internet. The link to
the English-language presentation (an audio webcast) including slides is
available on the company website at www.ahlstrom.com. Questions may also be
submitted in writing via the Internet. Listening to the conference call requires
registration.
An on-demand webcast including slides is available for viewing and listening on
the company website for one year after the conference call.
Presentation material will be available on August 10, 2011 after the Interim
Report is published, at www.ahlstrom.com > Investors > Reports and presentations
> 2011. Material in Finnish will be available at www.ahlstrom.fi > Sijoittajat >
Katsaukset ja presentaatiot > 2011.
Ahlstrom's financial information in 2011
Ahlstrom will publish financial information in 2011 as follows:
+--------------------------------+-------------------+-------------+
|Report |Date of publication|Silent period|
+--------------------------------+-------------------+-------------+
|Interim Report January-September|Monday, October 24 |October 1-24 |
+--------------------------------+-------------------+-------------+
During the silent period, Ahlstrom will not communicate with capital market
representatives.
Ahlstrom in brief
Ahlstrom is a high performance materials company, partnering with leading
businesses around the world to help them stay ahead. Our products are used in a
large variety of everyday applications, such as filters, wallcovers, wipes,
flooring, labels and food packaging. We have a leading market position in the
businesses in which we operate. Our 5,700 employees serve customers in 26
countries on six continents. In 2010, Ahlstrom's net sales amounted to EUR 1.9
billion. The company's share is quoted on the NASDAQ OMX Helsinki. More
information is available atwww.ahlstrom.com.
Appendix
Consolidated financial statements
Appendix
Financial statements are unaudited.
--------------------------------------------------------------------------------
INCOME STATEMENT Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Net sales 423.7 424.9 846.2 806.6 1,636.3
Cost of goods sold -366.2 -358.3 -731.1 -688.7 -1,414.0
--------------------------------------------------------------------------------
Gross profit 57.5 66.6 115.1 117.9 222.3
Sales and marketing expenses -11.7 -13.0 -25.0 -25.4 -49.2
R&D expenses -4.0 -4.6 -8.9 -8.8 -18.6
Administrative expenses -23.8 -25.9 -44.5 -48.5 -96.8
Other operating income 5.0 5.8 6.8 7.7 16.8
Other operating expense -0.8 -0.6 -1.8 -1.5 -28.0
--------------------------------------------------------------------------------
Operating profit / loss 22.1 28.2 41.6 41.3 46.5
Net financial expenses -6.6 -6.7 -11.8 -13.3 -26.3
Share of profit / loss of associated
companies -1.3 -0.4 -1.3 -0.4 -1.4
--------------------------------------------------------------------------------
Profit / loss before taxes 14.3 21.0 28.5 27.5 18.8
Income taxes -5.8 -7.4 -11.7 -9.3 -7.8
--------------------------------------------------------------------------------
Profit / loss for the period from
continuing operations 8.5 13.6 16.8 18.2 10.9
--------------------------------------------------------------------------------
Discontinued operations
Profit/loss for the period 1.3 1.5 2.6 2.4 7.0
Impairment loss recognised on the
remeasurement to fair
value and cost to sell -18.4 - -18.4 - -
--------------------------------------------------------------------------------
Profit / loss for the period from
discontinued operations -17.1 1.5 -15.8 2.4 7.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -8.6 15.1 1.0 20.6 17.9
--------------------------------------------------------------------------------
Attributable to
Owners of the parent -8.6 15.1 0.8 20.6 17.9
Non-controlling interest -0.0 - 0.2 - 0.0
--------------------------------------------------------------------------------
Continuing operations
Earnings per share, EUR
- Basic and diluted * 0.16 0.26 0.30 0.33 0.11
--------------------------------------------------------------------------------
Including discontinued operations
Earnings per share, EUR
- Basic and diluted * -0.21 0.29 -0.04 0.38 0.26
-------------------------------------
* With the effect of interest on hybrid bond for the period, net of tax
---------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2011 2010 2010
---------------------------------------------------------------------------
Profit / loss for the period -8.6 15.1 1.0 20.6 17.9
Other comprehensive income, net of tax
Translation differences 0.5 31.8 -16.1 54.8 39.2
Hedges of net investments in foreign operations - -0.8 - -2.8 -2.8
Cash flow hedges -0.4 -0.0 -0.1 -0.4 0.8
---------------------------------------------------------------------------
Other comprehensive income, net of tax 0.2 31.0 -16.2 51.7 37.3
---------------------------------------------------------------------------
Total comprehensive income for the period -8.4 46.0 -15.2 72.2 55.2
---------------------------------------------------------------------------
Attributable to
Owners of the parent -8.4 46.0 -15.4 72.2 55.2
Non-controlling interest -0.0 - 0.2 - 0.0
--------------------------------------------------------------------------------
BALANCE SHEET 30.6. 30.6. 31.12.
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Property, plant and equipment 548.6 610.5 590.1
Goodwill 109.9 125.4 114.1
Other intangible assets 39.5 46.7 41.1
Investments in associated companies 9.3 11.6 10.7
Other investments 2.5 2.5 2.5
Other receivables 45.1 35.4 44.4
Deferred tax assets 52.8 56.7 54.9
--------------------------------------------------------------------------------
Total non-current assets 807.7 888.7 857.7
Current assets
Inventories 191.0 176.3 173.6
Trade and other receivables 287.3 308.8 266.9
Income tax receivables 1.7 2.4 2.4
Other investments - - -
Cash and cash equivalents 26.0 19.8 23.5
--------------------------------------------------------------------------------
Total current assets 506.1 507.3 466.3
Assets classified as held for sale 224.2 255.9 234.8
--------------------------------------------------------------------------------
Total assets 1,538.0 1,651.9 1,558.9
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 561.7 645.6 623.0
Hybrid bond 80.0 80.0 80.0
Non-controlling interest 1.0 - 0.9
--------------------------------------------------------------------------------
Total equity 642.8 725.6 703.8
Non-current liabilities
Interest-bearing loans and borrowings 245.6 202.5 261.7
Employee benefit obligations 75.0 79.4 75.4
Provisions 2.8 3.6 3.0
Other liabilities 3.4 2.9 4.4
Deferred tax liabilities 29.2 31.9 27.4
--------------------------------------------------------------------------------
Total non-current liabilities 356.1 320.4 371.9
Current liabilities
Interest-bearing loans and borrowings 120.0 185.1 95.0
Trade and other payables 343.4 354.1 327.1
Income tax liabilities 5.6 5.6 4.4
Provisions 7.0 8.3 6.7
--------------------------------------------------------------------------------
Total current liabilities 476.0 553.1 433.2
--------------------------------------------------------------------------------
Total liabilities 832.0 873.4 805.1
Liabilities directly associated with assets classified
as held for sale 63.2 52.9 49.9
--------------------------------------------------------------------------------
Total equity and liabilities 1,538.0 1,651.9 1,558.9
--------------------------------------------------------------------------------
Statement of changes in equity
1) Issued capital
2) Share premium
3) Non-restricted equity reserve
4) Hedging reserve
5) Translation reserve
6) Own shares
7) Retained earnings
8) Total attributable to owners of the parent
9) Non-controlling interest
10) Hybrid bond
11) Total equity
EUR million 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at January
1, 2010 70.0 209.3 8.3 -0.8 -17.7 - 336.6 605.6 - 80.0 685.6
Profit / loss for the
period - - - - - - 20.6 20.6 - - 20.6
Other comprehensive
income, net of tax
Translation
differences - - - - 54.8 - - 54.8 - - 54.8
Hedges of net
investments
in foreign
operations - - - - -2.8 - - -2.8 - - -2.8
Cash flow hedges - - - -0.4 - - - -0.4 - - -0.4
Dividends paid and
other - - - - - - -26.0 -26.0 - - -26.0
Hybrid bond - - - - - - - - - - -
Interest on hybrid
bond - - - - - - -5.6 -5.6 - - -5.6
Purchases of own
shares - - - - - -0.9 - -0.9 - - -0.9
Share ownership plan
for EMT - - - - - - - - - - -
Change in non-
controlling interests - - - - - - - - - - -
Share-based incentive
plan - - - - - - 0.2 0.2 - - 0.2
--------------------------------------------------------------------------------
Equity at June
30, 2010 70.0 209.3 8.3 -1.2 34.3 -0.9 325.8 645.6 - 80.0 725.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at January
1, 2011 70.0 209.3 8.3 0.0 18.8 -6.4 323.0 623.0 0.9 80.0 703.8
Profit / loss for the
period - - - - - - 0.8 0.8 0.2 - 1.0
Other comprehensive
income,
net of tax
Translation
differences - - - - -16.1 - - -16.1 - - -16.1
Hedges of net
investments
in foreign
operations - - - - - - - - - - -
Cash flow hedges - - - -0.1 - - - -0.1 - - -0.1
Dividends paid and
other - - - - - - -41.1 -41.1 - - -41.1
Hybrid bond - - - - - - - - - - -
Interest on hybrid
bond - - - - - - -5.6 -5.6 - - -5.6
Purchases of own
shares - - - - - - - - - - -
Share ownership plan
for EMT - - - - - - - - - - -
Change in non-
controlling interests - - - - - - - - - - -
Share-based incentive
plan - - - - - 2.0 -1.1 0.9 - - 0.9
--------------------------------------------------------------------------------
Equity at June
30, 2011 70.0 209.3 8.3 -0.1 2.7 -4.3 275.9 561.7 1.0 80.0 642.8
--------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS - including discontinued
operations Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Cash flow from operating activities
Profit / loss for the period -8.6 15.1 1.0 20.6 17.9
Adjustments, total 48.1 40.8 83.3 74.4 145.2
Changes in net working capital -6.9 12.6 -39.4 25.3 69.2
Change in provisions 0.2 -1.2 -0.1 -3.4 -4.9
Financial items -2.7 -20.5 4.4 -36.7 -53.2
Income taxes paid / received -2.4 -1.7 -3.1 -2.9 -6.8
--------------------------------------------------------------------------------
Net cash from operating activities 27.6 45.1 46.2 77.2 167.5
Cash flow from investing activities
Acquisition of Group companies - - - - -11.2
Purchases of intangible and tangible assets -14.1 -5.8 -21.6 -13.3 -48.7
Other investing activities 3.4 -0.3 5.4 0.3 11.3
--------------------------------------------------------------------------------
Net cash from investing activities -10.7 -6.1 -16.2 -13.1 -48.7
Cash flow from financing activities
Dividends paid and other -40.8 -25.6 -41.1 -25.6 -25.9
Repurchase of own shares - - - -0.9 -2.0
Investment to Ahlstrom Corporation shares related
to
share ownership plan for EMT - - - - -3.5
Payments received on hybrid bond - - - - -
Interest on hybrid bond - - - - -7.6
Changes in loans and other financing activities 25.6 -21.5 13.6 -39.0 -76.9
--------------------------------------------------------------------------------
Net cash from financing activities -15.2 -47.1 -27.4 -65.5 -115.8
Net change in cash and cash equivalents 1.7 -8.1 2.6 -1.4 2.9
Cash and cash equivalents at the beginning of the
period 24.8 27.2 24.6 19.9 19.9
Foreign exchange adjustment 0.0 0.9 -0.6 1.5 1.7
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the
period 26.6 20.0 26.6 20.0 24.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
KEY FIGURES Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Personnel costs -79.9 -82.8 -158.4 -158.8 -315.3
Depreciation and amortization -22.2 -22.4 -43.5 -43.7 -88.2
Impairment charges - -0.0 - -0.0 -0.1
--------------------------------------------------------------------------------
, , , , ,
Operating profit, % 5.2 6.6 4.9 5.1 2.8
Return on capital employed (ROCE), % 10.2 12.4 9.4 9.0 5.2
Basic earnings per share *, EUR 0.16 0.26 0.30 0.33 0.11
Capital expenditure, EUR million 12.5 4.7 17.3 11.2 47.2
--------------------------------------------------------------------------------
Number of employees, average 5,201 5,231 5,174 5,233 5,264
Including discontinued operations
Personnel costs -88.7 -91.4 -176.1 -175.5 -350.0
Depreciation and amortization -26.0 -26.6 -51.3 -52.1 -104.8
Impairment charges -13.5 -0.1 -13.5 -0.1 -0.2
--------------------------------------------------------------------------------
, , , , ,
Operating profit, % 0.7 6.1 2.5 4.7 2.8
Return on capital employed (ROCE), % 1.1 10.9 4.6 8.0 5.0
Return on equity (ROE), % -5.3 8.6 0.3 5.8 2.6
--------------------------------------------------------------------------------
, , , , ,
Interest-bearing net liabilities, EUR
million 338.4 364.9 338.4 364.9 330.1
Equity ratio, % 42.2 44.4 42.2 44.4 45.6
Gearing ratio, % 52.6 50.3 52.6 50.3 46.9
--------------------------------------------------------------------------------
, , , , ,
Basic earnings per share *, EUR -0.21 0.29 -0.04 0.38 0.26
Equity per share, EUR 12.12 13.85 12.12 13.85 13.48
Average number of shares during the
period, 1000's 46,349 46,596 46,299 46,619 46,514
Number of shares at the end of the
period, 1000's 46,349 46,596 46,349 46,596 46,224
--------------------------------------------------------------------------------
, , , , ,
Capital expenditure, EUR million 14.0 5.3 20.0 11.8 51.1
Capital employed at the end of the
period, EUR million 1,007.7 1,110.5 1,007.7 1,110.5 1,058.5
Number of employees, average 5,774 5,787 5,743 5,789 5,823
* With the effect of interest on hybrid bond for the period, net of tax
Accounting principles
This interim report has been prepared in accordance with IAS 34, Interim
Financial reporting, as adopted by EU and the accounting principles set out in
the Group's Financial Statements for 2010 except for the changes below.
Changes in accounting principles
The following new or amended standards and interpretations which the Group has
adopted as of January 1, 2011 have not had impact on the consolidated financial
statements.
- IAS 32 Financial Instruments: Presentation (amendment) - Classification of
Rights Issues
- IAS 24 Related Party Disclosures (revised)
- IFRIC 14 Prepayments of a Minimum Funding Requirement (amendment)
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
Disposals of businesses in 2011
On December 7, 2010 Ahlstrom signed an agreement to sell Wuxi plant in China and
three production lines in Bethune in the USA to Andrew Industries. Ahlstrom
completed the sales of production lines in Bethune on December 22, 2010 and the
sales of Wuxi on March 31, 2011. The value of the Wuxi transaction is EUR 1.1
million.
-------------------------------------------------------
DISPOSALS OF BUSINESSES Book values of assets
EUR million disposed of
-------------------------------------------------------
Property, plant and equipment -
Intangible assets -
Inventories 0.1
Trade and other receivables 0.2
Cash and cash equivalents 0.2
Financial liabilities -
Trade and other payables 0.3
-------------------------------------------------------
Net assets 0.3
Total transaction value 1.1
Consideration received (in cash) 0.4
Cash (disposed of) 0.2
-------------------------------------------------------
Net cash inflow 0.2
--------------------------------------------------------------------
SEGMENT INFORMATION Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2011 2010 2010
--------------------------------------------------------------------
Building and Energy 77.0 68.3 155.6 130.3 268.9
Filtration 83.8 88.5 166.1 167.5 339.8
Food and Medical 90.9 91.7 184.3 173.8 354.7
Label and Processing 183.2 188.1 364.8 360.1 724.3
Other operations 19.7 11.8 35.1 21.3 44.4
Internal sales -30.9 -23.5 -59.8 -46.4 -95.8
--------------------------------------------------------------------
Total net sales 423.7 424.9 846.2 806.6 1,636.3
Building and Energy 4.3 3.8 8.5 7.4 14.3
Filtration 2.4 1.8 4.5 3.7 7.3
Food and Medical 9.7 6.7 19.3 13.7 34.5
Label and Processing 8.5 7.7 16.1 15.4 30.5
Other operations 6.0 3.5 11.4 6.2 9.2
--------------------------------------------------------------------
Total internal sales 30.9 23.5 59.8 46.4 95.8
Building and Energy -0.5 1.4 1.8 -0.4 1.3
Filtration 6.6 9.4 13.7 16.8 3.1
Food and Medical 2.9 5.3 5.8 9.3 13.0
Label and Processing 10.5 14.2 16.7 19.5 32.2
Other operations 2.5 -1.9 2.7 -3.2 -1.9
Eliminations 0.2 -0.2 0.9 -0.7 -1.3
--------------------------------------------------------------------
Operating profit / loss 22.1 28.2 41.6 41.3 46.5
Return on capital employed (RONA), %
Building and Energy -1.5 3.5 2.4 -0.5 0.9
Filtration 16.3 20.1 16.7 18.6 1.8
Food and Medical 5.7 9.7 5.7 8.6 6.3
Label and Processing 15.3 18.8 12.1 12.7 10.9
Group (ROCE), % 10.2 12.4 9.4 9.0 5.2
Building and Energy 148.4 156.3 148.4 156.3 147.7
Filtration 161.8 188.3 161.8 188.3 166.1
Food and Medical 195.4 228.9 195.4 228.9 213.0
Label and Processing 273.9 302.4 273.9 302.4 277.9
Other operations -2.3 -12.5 -2.3 -12.5 -4.1
Eliminations 3.0 -0.5 3.0 -0.5 -0.5
--------------------------------------------------------------------
Total net assets 780.1 863.1 780.1 863.1 800.1
Building and Energy 1.9 0.7 3.2 1.1 6.0
Filtration 5.7 1.2 6.5 1.5 6.8
Food and Medical 2.2 0.9 4.0 5.3 13.0
Label and Processing 2.0 1.7 2.1 2.7 19.4
Other operations 0.8 0.3 1.6 0.5 2.1
--------------------------------------------------------------------
Total capital expenditure 12.5 4.7 17.3 11.2 47.2
Building and Energy -4.6 -4.6 -9.3 -9.0 -18.1
Filtration -4.1 -4.9 -8.2 -9.6 -19.1
Food and Medical -4.7 -5.2 -9.4 -9.6 -20.2
Label and Processing -7.2 -7.1 -14.3 -14.3 -28.4
Other operations -1.6 -0.6 -2.2 -1.2 -2.3
--------------------------------------------------------------------
Total depreciation and amortization -22.2 -22.4 -43.5 -43.7 -88.2
Building and Energy - - - - -
Filtration - - - - -
Food and Medical - - - - -
Label and Processing - -0.0 - -0.0 -0.1
Other operations - - - - -
--------------------------------------------------------------------
Total impairment charges - -0.0 - -0.0 -0.1
Building and Energy - - - - -
Filtration 0.5 - -0.6 - -24.7
Food and Medical - 0.8 - 0.8 -1.0
Label and Processing 1.7 - 1.7 0.0 1.6
Other operations -0.5 0.0 0.4 0.3 3.8
--------------------------------------------------------------------
Total non-recurring items 1.8 0.8 1.6 1.1 -20.3
---------------------------------------------------
SEGMENT INFORMATION Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Thousands of tons 2011 2010 2011 2010 2010
---------------------------------------------------
Building and Energy 33.9 31.2 67.7 60.5 121.1
Filtration 29.2 29.7 57.7 57.7 115.1
Food and Medical 33.3 32.3 67.0 63.2 125.4
Label and Processing 149.7 156.9 297.8 313.1 601.0
Other operations 2.7 2.2 4.8 3.7 8.2
Eliminations -13.1 -13.1 -25.7 -26.3 -51.4
---------------------------------------------------
Total sales tons 235.7 239.2 469.3 471.9 919.3
Segment information is presented according to the IFRS standards.
--------------------------------------------------------------------------------
NET SALES BY REGION - including discontinued
operations Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Europe 267.4 252.9 534.7 494.4 987.3
North America 110.2 118.9 222.2 221.8 455.9
South America 54.2 56.6 106.2 104.0 214.1
Asia-Pacific 56.4 50.1 107.6 90.1 197.5
Rest of the world 8.7 10.8 17.7 20.1 39.4
--------------------------------------------------------------------------------
Total net sales 496.8 489.4 988.4 930.4 1 894.2
----------------------------------------------------------------
CHANGES OF PROPERTY, PLANT AND
EQUIPMENT - including discontinued operations Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2010
----------------------------------------------------------------
Book value at Jan 1 704.9 717.6 717.6
Acquisitions through business combinations - - 12.2
Additions 18.5 11.8 49.9
Disposals -0.2 -0.2 -10.2
Depreciations and impairment charges -48.8 -49.2 -99.2
Translation differences and other changes -21.4 55.9 34.6
Book value at the end of the period 653.0 736.0 704.9
--------------------------------------------------------------------------------
TRANSACTIONS WITH RELATED PARTIES - including discontinued
operations Q1-Q2 Q1-Q2 Q1-Q4
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Transactions with associated
companies
Sales and interest income 0.3 0.2 0.5
Purchases of goods and services -1.4 -1.3 -2.8
Trade and other receivables 0.1 0.1 0.1
Trade and other payables - 0.2 0.2
Market prices have been used in transactions with associated companies.
------------------------------------------------------------------------
OPERATING LEASES - including discontinued operations 30.6. 30.6. 31.12.
EUR million 2011 2010 2010
------------------------------------------------------------------------
Current portion 6.9 6.4 7.1
Non-current portion 18.9 19.4 20.3
------------------------------------------------------------------------
Total 25.7 25.8 27.4
------------------------------------------------------------------------
--------------------------------------------------------------------------------
COLLATERALS AND COMMITMENTS - including discontinued
operations 30.6. 30.6. 31.12.
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Mortgages 73.0 73.0 73.0
Pledges 0.2 0.2 0.2
Commitments
Guarantees given on behalf of group companies 20.1 21.2 19.8
Guarantees given on behalf of associated companies 15.0 1.0 -
Capital expenditure commitments 19.6 8.6 3.6
Other commitments 2.0 2.7 2.6
-------------
--------------------------------------------------------------------------------
QUARTERLY DATA Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2011 2011 2010 2010 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Net sales 423.7 422.5 416.8 413.0 424.9 381.6
Cost of goods sold -366.2 -364.9 -367.5 -357.8 -358.3 -330.4
--------------------------------------------------------------------------------
Gross profit 57.5 57.6 49.3 55.2 66.6 51.2
Sales and marketing expenses -11.7 -13.2 -11.7 -12.1 -13.0 -12.4
R&D expenses -4.0 -4.9 -5.0 -4.8 -4.6 -4.2
Administrative expenses -23.8 -20.7 -25.2 -23.1 -25.9 -22.6
Other operating income 5.0 1.8 8.3 0.8 5.8 2.0
Other operating expense -0.8 -0.9 -24.6 -1.9 -0.6 -0.9
--------------------------------------------------------------------------------
Operating profit / loss 22.1 19.5 -9.0 14.1 28.2 13.1
Net financial expenses -6.6 -5.2 -5.3 -7.7 -6.7 -6.6
Share of profit / loss of associated -1.3 -0.0 -0.2 -0.7 -0.4 -0.0
companies
--------------------------------------------------------------------------------
Profit / loss before taxes 14.3 14.3 -14.5 5.7 21.0 6.5
Income taxes -5.8 -5.9 5.7 -4.2 -7.4 -1.9
--------------------------------------------------------------------------------
Profit / loss for the period from 8.5 8.3 -8.8 1.5 13.6 4.6
continuing operations
--------------------------------------------------------------------------------
Discontinued operations
Profit/loss for the period 1.3 1.3 2.0 2.6 1.5 0.9
Impairment loss recognised on the
remeasurement to fair -18.4 - - - - -
value and cost to sell
--------------------------------------------------------------------------------
Profit / loss for the period from -17.1 1.3 2.0 2.6 1.5 0.9
discontinued operations
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -8.6 9.6 -6.8 4.1 15.1 5.5
--------------------------------------------------------------------------------
Attributable to
Owners of the parent -8.6 9.4 -6.8 4.1 15.1 5.5
Non-controlling interest -0.0 0.2 -0.0 0.0 - -
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QUARTERLY DATA BY SEGMENT Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2011 2011 2010 2010 2010 2010
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Net sales
Building and Energy 77.0 78.6 72.2 66.3 68.3 62.1
Filtration 83.8 82.3 84.9 87.4 88.5 79.0
Food and Medical 90.9 93.4 92.3 88.7 91.7 82.0
Label and Processing 183.2 181.7 181.9 182.2 188.1 172.0
Other operations and eliminations -11.2 -13.5 -14.6 -11.6 -11.7 -13.4
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Group total 423.7 422.5 416.8 413.0 424.9 381.6
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Operating profit / loss
Building and Energy -0.5 2.3 1.2 0.5 1.4 -1.8
Filtration 6.6 7.1 -20.7 7.0 9.4 7.5
Food and Medical 2.9 3.0 2.1 1.6 5.3 4.0
Label and Processing 10.5 6.2 5.0 7.7 14.2 5.3
Other operations and eliminations 2.7 0.9 3.5 -2.8 -2.1 -1.8
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Group total 22.1 19.5 -9.0 14.1 28.2 13.1
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Operating profit / loss excl. NRI
Building and Energy -0.5 2.3 1.2 0.5 1.4 -1.8
Filtration 6.1 8.2 4.2 6.8 9.4 7.5
Food and Medical 2.9 3.0 3.9 1.6 4.5 4.0
Label and Processing 8.8 6.2 4.9 6.2 14.2 5.3
Other operations and eliminations 3.2 -0.0 -1.5 -1.3 -2.1 -2.1
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Group total 20.4 19.7 12.7 13.8 27.4 12.8
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Sales tons, thousands of tons
Building and Energy 33.9 33.8 31.8 28.8 31.2 29.3
Filtration 29.2 28.4 28.5 28.9 29.7 28.0
Food and Medical 33.3 33.7 32.1 30.1 32.3 30.9
Label and Processing 149.7 148.2 143.3 144.5 156.9 156.2
Other operations and eliminations -10.4 -10.5 -10.8 -9.9 -10.9 -11.7
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Group total 235.7 233.6 224.9 222.5 239.2 232.7
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KEY FIGURES QUARTERLY Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2011 2011 2010 2010 2010 2010
------------------------------------------------------------------------------
Continuing operations
Net sales 423.7 422.5 416.8 413.0 424.9 381.6
Operating profit / loss 22.1 19.5 -9.0 14.1 28.2 13.1
Profit / loss before taxes 14.3 14.3 -14.5 5.7 21.0 6.5
Profit / loss for the period 8.5 8.3 -8.8 1.5 13.6 4.6
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, , , , , ,
Return on capital employed (ROCE), % 10.2 9.2 -3.9 6.0 12.4 5.9
Basic earnings per share *, EUR 0.16 0.14 -0.22 0.00 0.26 0.07
Including discontinued operations
Net sales 496.8 491.6 481.4 482.4 489.4 441.0
Operating profit / loss 3.6 20.8 -7.0 16.9 29.8 14.0
Profit / loss before taxes -4.4 15.5 -12.6 8.3 22.5 7.4
Profit / loss for the period -8.6 9.6 -6.8 4.1 15.1 5.5
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, , , , , ,
Gearing ratio, % 52.6 48.4 46.9 47.7 50.3 55.3
Return on capital employed (ROCE), % 1.1 8.2 -2.5 6.0 10.9 5.2
Basic earnings per share *, EUR -0.21 0.17 -0.18 0.06 0.29 0.09
Average number of shares during the
period, 1000's 46,349 46,248 46,305 46,517 46,596 46,642
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* With the effect of interest on hybrid bond for the period, net of tax
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)
Return on capital employed (RONA), %
Operating profit (loss)/
x 100
Working capital (annual average) + Property, plant and equipment and Intangible
assets (annual average)
Basic earnings per share, EUR
Profit (loss) for the period - Non-controlling interest - Interest on hybrid
bond for the period, net of tax/
Average number of shares during the period
Diluted earnings per share, EUR
Profit (loss) for the period - Non-controlling interest - Interest on hybrid
bond for the period, net of tax/
Average diluted number of shares during the period
Equity per share, EUR
Equity attributable to owners of the parent/
Number of outstanding shares at the end of the
period
[HUG#1537355]
