Ahlstrom Corporation STOCK EXCHANGE RELEASE 29.4 2010 at 12.00
January-March 2010 compared to January-March 2009
* Net sales were EUR 441.0 million (EUR 376.1 million).
* Operating profit (EBIT) EUR 14.0 million (operating loss of EUR 10.7
million). The figure includes non-recurring items of EUR 0.3 million (EUR
-0.7 million).
* Result before taxes was EUR 7.4 million (EUR -18.6 million), and earnings
per share were EUR 0.09 (EUR -0.26).
* Net cash from operating activities was EUR 32.1 million (EUR 20.9 million).
Events in January-March 2010
* The new plant in the Mundra special economic zone in India was opened as
planned. The plant manufactures medical nonwovens, for which the market
situation looks encouraging in Asia. The total cost of the investment is
approximately EUR 42 million.
* The project to reduce operative working capital, launched at the beginning
of 2009, continued. Working capital decreased by EUR 14.0 million with
turnover improving by 5 days from the turn of the year.
* On February 16, 2010, Ahlstrom signed the United Nations sustainable
development initiative Global Compact and registered as one of the
supporting participants.
Outlook for 2010
* The recovery of demand that started toward the end of 2009, continued in
January-March 2010. Since sales prices in most business areas are being
increased to cover the rising raw material costs, and sales volumes seem to
develop slightly more favorably than anticipated, the net sales outlook was
revised on April 19, 2010. Net sales in 2010 are estimated to increase to
approximately the 2008 level.
* The outlook on the EBIT remains unchanged. EBIT excluding non-recurring
items is expected to increase from 2009.
Jan Lång, President and CEO:
* In the first quarter, our profitability improved from the comparison period
despite the increasing raw material prices. Profitability was improved by
the growth in sales volumes due to the recovery of demand and by the
restructuring measures carried out last year. The efficiency improvement
measures will be continued.
* The increase in the prices of raw materials, which has continued since last
summer, has caused cost pressure, but we have mainly been able to implement
corresponding increases in our sales prices.
* The growth of net sales in Asia was strong, and, in accordance with our
updated strategy, we are currently actively assessing growth alternatives in
Asia.
KEY FIGURES
+-----------------------------------+-----+-----+-------+------+-------+-------+
|MEUR | 1-3/| 1-3/|Change,|10-12/|Change,| 2009|
| | 2010| 2009| %| 2009| %| |
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Net sales |441.0|376.1| 17.3| 420.5| 4.9|1,596.1|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|EBIT (Operating profit/loss) | 14.0|-10.7| -| -26.6| -| -14.6|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Profit/loss before taxes | 7.4|-18.6| -| -33.4| -| -40.1|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Profit for the period | 5.5|-12.4| -| -27.9| -| -32.9|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Earnings per share | 0.09|-0.26| -| -0.61| -| -0.72|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Return on capital employed (ROCE), | 5.2| -3.3| -| -9.4| -| -1.1|
|% | | | | | | |
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Equity ratio, % | 43.1| 36.4| -| 44.8| -| 44.8|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Gearing ratio, % | 55.3| 99.8| -| 57.7| -| 57.7|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Interest-bearing net liabilities |375.9|601.9| -37.6| 395.9| -5.1| 395.9|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Capital expenditure (excluding | 6.5| 26.9| -75.9| 10.0| -34.6| 63.8|
|acquisitions) | | | | | | |
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Net cash from operating activities | 32.1| 20.9| 53.5| 48.6| -34.0| 209.6|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Number of personnel, on average |5,773|6,173| -6.5| 5,855| -1.4| 5,993|
+-----------------------------------+-----+-----+-------+------+-------+-------+
|Number of personnel, at the end of |5,787|6,052| -4.4| 5,841| -0.9| 5,841|
|the period | | | | | | |
+-----------------------------------+-----+-----+-------+------+-------+-------+
OPERATING ENVIRONMENT
Demand for Ahlstrom's products started to pick up in the summer of 2009, and
continued growing in January-March 2010. Despite the general recovery in the
world economy and Ahlstrom's markets, demand still remained below the
pre-recession level.
In the Fiber Composites segment(), demand for Ahlstrom's filtration media for
the transportation industry and building materials benefited from the general
upturn of the economy, which improved the market situation in the automotive
industry and in the building material market served by Ahlstrom. Demand for the
company's food packaging and teabag materials, as well as nonwovens used in
medical applications, was steady. In the wiping products market, demand began to
decline toward the end of 2009, following a temporary peak during the
preparations for a potential H1N1 epidemic, but increased in January-March
compared to the first quarter of 2009. Wind turbine and marine industries showed
slight signs of recovery.
In the Specialty Papers segment(*), demand for all Ahlstrom's specialty papers
continued growing in the first quarter of 2010. The market situation was
improved by the general recovery in the economic situation, which resulted in
replenishing the inventories reduced during the economic crisis in the entire
supply chain. Demand for release and label papers started to grow in Asia and
South America as early as the second quarter of 2009, but in Europe this did not
happen until after the summer of 2009. Demand for technical papers increased the
most in Asia.
Raw material price increases
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.
The price of pulp and most other raw materials started increasing in June 2009,
and this trend continued in January-March 2010. The price of pulp and
polypropylene increased to the pre-recession peak levels at the end of March
2010.
The earthquake in Chile accelerated the increase in pulp prices. Due to the end
of February earthquake, approximately 8% of the world's pulp production capacity
was temporarily closed down in March. The reduction in capacity also obstructed
the availability of pulp, and therefore, Ahlstrom took special action in order
to safeguard the continuity of operations in its plants using pulp. For the time
being, the company has been able to continue its operations normally.
The March port strike in Finland did not ultimately have a significant impact on
Ahlstrom's operations or profitability.
DEVELOPMENT OF NET SALES
+-----------------+-----+-----+-------+------+-------+-------+
|Net sales | 1-3/| 1-3/|Change,|10-12/|Change,| |
|by segment | 2010| 2009| %| 2009| %| 2009|
|and business area| | | | | | |
+-----------------+-----+-----+-------+------+-------+-------+
|Fiber Composites |231.6|208.8| 10.9| 223.4| 3.7| 861.2|
+-----------------+-----+-----+-------+------+-------+-------+
|Advanced | | | | | | |
|Nonwovens | 43.9| 45.3| -3.1| 44.1| -0.4| 175.4|
+-----------------+-----+-----+-------+------+-------+-------+
|Filtration | 79.1| 65.0| 21.7| 71.1| 11.1| 276.2|
+-----------------+-----+-----+-------+------+-------+-------+
|Glass & | | | | | | |
|Industrial | | | | | | |
|Nonwovens | 49.8| 44.5| 11.9| 45.9| 8.5| 180.0|
+-----------------+-----+-----+-------+------+-------+-------+
|Home & | | | | | | |
|Personal | | | | | | |
|Nonwovens | 61.1| 56.4| 8.4| 64.6| -5.3| 238.4|
+-----------------+-----+-----+-------+------+-------+-------+
|Specialty Papers |212.3|170.1| 24.8| 199.6| 6.3| 743.8|
+-----------------+-----+-----+-------+------+-------+-------+
|Release & | | | | | | |
|Label Papers | 79.9| 63.4| 26.1| 76.2| 4.9| 282.0|
+-----------------+-----+-----+-------+------+-------+-------+
|Technical | | | | | | |
|Papers |132.4|106.7| 24.1| 123.6| 7.1| 464.1|
+-----------------+-----+-----+-------+------+-------+-------+
|Other functions* | | | | | | |
|and eliminations | -2.9| -2.8| -| -2.5| - | -8.9|
+-----------------+-----+-----+-------+------+-------+-------+
|Total net sales |441.0|376.1| 17.3| 420.5| 4.9|1,596.1|
+-----------------+-----+-----+-------+------+-------+-------+
* Other functions include financing and taxation-related receivables,
liabilities, and cost items, as well as earnings, costs, assets, and liabilities
belonging to holding and sales companies.
The Group's net sales grew by 17.3% compared to January-March 2009. Net sales
were EUR 441.0 million (EUR 376.1 million). Net sales were improved by the
increasing demand for nearly all Ahlstrom's products and the implemented price
increases due to the increasing cost of raw materials. The growth in net sales
was the strongest in the Asia Pacific region (49.1%) and South America (28.9%).
On the other hand, net sales in euros decreased by 2.7% in North America, mainly
due to exchange rate fluctuations and slow recovery of the markets served by
Ahlstrom.
Net sales of the Fiber Composites segment amounted to EUR 231.6 million (EUR
208.8 million), representing 52% of the Group's net sales. The segment net sales
grew by 10.9% compared to January-March 2009. The strongest growth was seen in
net sales of the Filtration business area (21.7%), attributable to the increased
demand resulting from the overall recovery of the world economy. Net sales of
the Advanced Nonwovens business area, however, decreased slightly (-3.1%),
mainly due to exchange rate fluctuations.
Net sales of the Specialty Papers segment amounted to EUR 212.3 million (EUR
170.1 million), representing 48% of the Group's net sales. Net sales of the
entire segment were 24.8% higher than in the first quarter of 2009. The sales
volumes of, among others, release and label papers, posters, industrial papers,
coated specialty papers and crepe paper increased. The sales of specialty paper
products for the automotive, construction and textile industries picked up
notably compared to the comparison period. For example, net sales of abrasive
base papers increased significantly from January-March 2009 when the recession
impacted Ahlstrom's operations the hardest.
RESULT AND PROFITABILITY
+-------------------------------+----+-----+-------+------+-------+-----+
|Financial result |1-3/| 1-3/|Change,|10-12/|Change,| 2009|
|by segment |2010| 2009| MEUR| 2009| MEUR| |
+-------------------------------+----+-----+-------+------+-------+-----+
|Fiber Composites | | | | | | |
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss) | 9.5| -2.5| 12.0| -30.4| 39.9|-18.8|
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss), %| 4.1| -1.2| -| -13.6| -| -2.2|
+-------------------------------+----+-----+-------+------+-------+-----+
|Return on net | | | | | | |
|assets, RONA, % | 5.4| -1.2| -| -17.0| -| -2.5|
+-------------------------------+----+-----+-------+------+-------+-----+
|Specialty Papers | | | | | | |
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss) | 7.7| -3.4| 11.1| 3.8| 3.9| 14.6|
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss), %| 3.6| -2.0| -| 1.9| -| 2.0|
+-------------------------------+----+-----+-------+------+-------+-----+
|Return on net | 8.8| -3.3| -| 4.1| -| 3.8|
|assets, RONA, % | | | | | | |
+-------------------------------+----+-----+-------+------+-------+-----+
|Other functions* | | | | | | |
|and eliminations | | | | | | |
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss) |-3.2| -4.9| 1.7| -0.0| -3.2|-10.4|
+-------------------------------+----+-----+-------+------+-------+-----+
|Ahlstrom Group total | | | | | | |
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss) |14.0|-10.7| 24.8| -26.6| 40.7|-14.6|
+-------------------------------+----+-----+-------+------+-------+-----+
|EBIT (Operating profit/loss), %| 3.2| -2.9| -| -6.3| -| -0.9|
+-------------------------------+----+-----+-------+------+-------+-----+
|ROCE, % | 5.2| -3.3| -| -9.4| -| -1.1|
+-------------------------------+----+-----+-------+------+-------+-----+
* Other functions include financing and taxation-related receivables,
liabilities, and cost items, as well as earnings, costs, assets, and liabilities
belonging to holding and sales companies.
The Group's operating profit (EBIT) was EUR 14.0 million (operating loss of EUR
10.7 million). The EBIT includes non-recurring items of EUR 0.3 million. The
operating profit excluding non-recurring items amounted to EUR 13.7 million. It
was significantly higher than in the comparison period (operating loss excluding
non-recurring items of EUR 10.0 million).
The operating result was most of all improved by the recovered demand, but it
was also increased by the continued efficiency improvement measures and the
annual savings of EUR 55 million gained due to the 2009 restructuring programs
which will be recognized in the result in full this year.
Profitability did not weaken significantly due to the rise in raw material
prices and other expenses, as the company managed to compensate most price rises
by increasing its sales prices. Especially the prices of specialty papers,
filtration materials and wiping products were raised. The company also announced
new price increases to protect its profit levels.
EBIT of the Fiber Composites segment increased to EUR 9.5 million (EUR -2.5
million). EBIT of the Specialty Papers segment increased to EUR 7.7 million
(operating loss of EUR 3.4 million). Neither segment reported non-recurring
items.
Thanks to the recovered demand, downtime in production due to the market
situation amounted to only 10.8% in January-March 2010, whereas it was 24.5% in
the same period last year. At the same time, the need for temporary layoffs and
other flexible work time arrangements decreased.
Net financial expenses were EUR 6.7 million (EUR 8.2 million). Net financial
expenses include net interest expenses of EUR 5.7 million (EUR 8.3 million),
financial exchange rate gains of EUR 0.4 million (EUR 0.4 million), and other
financial expenses of EUR 1.4 million (EUR 0.4 million).
Profit before taxes was EUR 7.4 million (loss before taxes of EUR 18.6 million).
Income taxes were EUR 1.9 million (deferred tax income EUR 6.2 million). A tax
refund of EUR 1.0 million from previous financial periods reduced the income tax
of the period.
Profit for the period was EUR 5.5 million (loss for the period EUR 12.4
million). Earnings per share were EUR 0.09 (EUR -0.26).
Return on capital employed (ROCE) amounted to 5.2% (-3.3%), and return on equity
(ROE) was 3.2% (-8.0%).
FINANCING
Net cash from operating activities amounted to EUR 32.1 million (EUR 20.9
million), and cash flow after investments was EUR 25.1 million (EUR -0.7
million). Cash flow was further improved by reduced working capital, which has
been receiving special attention since the beginning of 2009.
Operative working capital decreased by EUR 14.0 million compared to the end of
2009, and its turnover decreased by 5 days. At the end of the period, working
capital amounted to EUR 230.7 million, which was EUR 118.3 million less than at
the end of 2008, before the project was launched. From the end of 2008, turnover
of working capital improved by 28 days, to 48 days.
The company's interest-bearing net liabilities decreased by EUR 20.0 million
from the turn of the year to EUR 375.9 million (December 31, 2009: EUR 395.9
million). Ahlstrom's interest bearing liabilities amounted to EUR 403.1 million.
Of the loan portfolio, approximately 63% was tied to a fixed interest rate using
interest rate derivatives or loan contracts. The duration of the loan portfolio
(average interest rate tying period) was 27 months and the effective average
interest rate was 4.2%. The average maturity of the loan portfolio was 26
months.
The company's liquidity is good. At the end of the period, its total liquidity,
including cash, unused committed credit facilities, and the cash pool overdraft
limits totaled EUR 338.3 million. In addition, the company had uncommitted
credit facilities totaling EUR 143.8 million available.
Gearing ratio decreased to 55.3% (December 31, 2009: 57.7%). Equity ratio was
43.1% (December 31, 2009: 44.8%).
CAPITAL EXPENDITURE
Ahlstrom did not make any significant investments or investment decisions during
the period. The company's investments amounted to EUR 6.5 million (EUR 26.9
million).
IMPLEMENTING THE UPDATED STRATEGY
Ahlstrom announced its updated strategy in October 2009. The company's
operations were grouped into two business clusters: value-added business and
operational excellence business.
The long-term target of the strategy is to ensure Ahlstrom's profitable growth,
strengthen the company's competitive position, and generate returns that are in
line with the company's financial targets. One of the most important indicators
is return on capital employed (ROCE), which should reach its target level of
13%.
The implementation of the updated strategy began immediately after the
announcement. The first goal is to strengthen Ahlstrom's corporate culture and
leadership methods and to develop the organization, processes, and personnel so
that they support the strategy. During the first three months of the year,
processes related to personnel management and performance evaluation were
reformed. Furthermore, the growth strategy in the Asia region is actively being
worked on.
One of the key objectives this year is also the development of Ahlstrom's key
account and sales processes. In order to facilitate this, Ahlstrom will
implement global processes in sales performance management and key account
management, as well as launch global tools to further improve customer service
and solution based selling according to customer needs.
STREAMLINING PROGRAMS
In 2009, Ahlstrom executed two restructuring programs in order to streamline
operational activities. The combined annual savings generated by these programs
are approximately EUR 55 million, and they will be gained in full this year. The
working capital restructuring project launched in 2009 has reached nearly all
plants and will continue until the end of the year.
CHANGES IN THE CORPORATE EXECUTIVE TEAM
On January 26, 2010, William Casey was appointed Senior Vice President of
Advanced Nonwovens as of February 8, 2010. He is based in Windsor Locks, CT,
USA. Before taking this position, Mr. Casey worked as Chief Operating Officer at
Shawmut Corporation which manufactures laminates for the automotive industry.
The structure of the CET was changed on February 1, 2010. The leadership of
Ahlstrom's Sourcing operations was transferred to CFO Seppo Parvi. Diego
Borello, Senior Vice President, Purchasing and Sustainability, took on a new
role outside the CET in Ahlstrom's Sourcing organization. Paula Aarnio, Senior
Vice President, Human Resources, will be responsible for Ahlstrom's
Sustainability in addition to her earlier responsibilities.
PERSONNEL
In the first quarter of the year, Ahlstrom employed an average of 5,773
people(()) (6,173), and at the end of the period, 5,787 people (6,052).
The restructuring programs of 2009 resulted in a reduction of a total of 740
people, of whom 180 people will leave the company in 2010. Personnel reduction
due to the restructuring was 71 people in January-March. On the other hand, the
company hired new employees so the Group's personnel reduction was slightly less
than this, 54 people, during the period under review.
At the end of the period, the highest numbers of employees were in the United
States (24%), France (21%), Italy (12%), Finland (10%), Germany (9%), and Brazil
(7%).
ANNUAL GENERAL MEETING
Ahlstrom Corporation's Annual General Meeting was held on March 31, 2010.
The Annual General Meeting resolved to distribute a dividend of EUR 0.55 per
share from the company's retained earnings, in accordance with the proposal of
the Board of Directors, for the period ending on December 31, 2009. 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, 2009.
The AGM confirmed the number of members in the Ahlstrom Corporation's Board of
Directors at six. Thomas Ahlström, Sebastian Bondestam, Anders Moberg, Bertel
Paulig, and Peter Seligson were re-elected as members of the Board of Directors.
Lori J. Cross (born 1960) was elected as a new member of the Board.
PricewaterhouseCoopers Oy was re-elected as the company's auditor as recommended
by the Audit Committee. PricewaterhouseCoopers Oy appointed Eero Suomela, APA,
as the responsible auditor.
Authorization to repurchase and transfer own shares
The AGM authorized the Board of Directors to repurchase the company's own shares
in one or more installments in accordance with the proposal of the Board. Based
on the authorization, a maximum of 4,500,000 of the company's own shares can be
repurchased, however, taking into consideration the regulations of the Limited
Liability Companies Act regarding the allowable maximum number of own shares at
any given time. The shares may be repurchased only through public trading at the
prevailing market price using unrestricted shareholders' equity.
The authorization contains the right of the Board of Directors to decide on all
other terms and conditions of the repurchase. Thus, the authorization also
contains the right to repurchase shares in a manner other than applying the
proportionate ownership of the shareholders.
Based on the authorization, the Board of Directors may resolve to distribute a
maximum of 4,500,000 own shares in the company's possession. The Board of
Directors is authorized to decide to whom and in which order the shares will be
distributed. The Board of Directors may resolve to distribute shares in a manner
other than that in which the shareholders have the priority to repurchase
shares. 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 a manner and scope decided on 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 Board's authorizations to repurchase and distribute own shares 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.
Decisions by the Board of Directors
In the Board meeting held immediately after the Annual General Meeting, the
Board elected Peter Seligson as Chairman of the Board and Bertel Paulig as Vice
Chairman.
The Board resolved to establish three Committees: Audit Committee, Compensation
Committee, and Nomination Committee. Bertel Paulig (Chairman), Thomas Ahlström,
and Sebastian Bondestam were elected as members of the Audit Committee. Peter
Seligson (Chairman), Anders Moberg, and Lori J. Cross were elected as members of
the Compensation Committee. Five members were elected in the Nomination
Committee: Board members Peter Seligson (Chairman), Anders Moberg, and Bertel
Paulig as well as Risto Murto and Carl Ahlström as members outside the Board.
The composition of the Nomination Committee aims to increase the influence of
the shareholders in nominations.
OTHER EVENTS DURING THE REVIEW PERIOD
Mundra plant was opened in India
A new medical nonwovens plant in the Mundra special economic zone in Gujarat,
India, started operations in the first quarter of 2010. After testing and
customer approval process, the plant will begin deliveries in the second
quarter. The state-of-the-art operation will produce fabrics for surgical drapes
and gowns, facemasks, sterile barrier systems etc. Its SMS fabrics (multi-layer
spunmelt fabrics) represent some of the most advanced products in the market
offering targeted barrier, uniformity and strength to meet customer needs. The
market situation for these advanced nonwoven products looks encouraging in Asia,
and the new plant is in a favorable position to reach its set objectives. The
total cost of the investment is approximately EUR 42 million.
Repurchasing of Ahlstrom's own shares
On February 3, 2010, Ahlstrom's Board of Directors announced it would use the
authorization granted by the Annual General Meeting of March 25, 2009, to
repurchase the company's own shares. The shares were repurchased for the
implementation of the company's share-based incentive system.
They were purchased through public trading in NASDAQ OMX Helsinki.
The number of shares purchased was 75,000, which accounts for less than 0.2% of
Ahlstrom's all shares. The repurchase reduced the company's distributable
shareholders' equity. The purchases began on February 10, 2010 and ended on
March 16, 2010. The average price was EUR 11.68.
Ahlstrom signed UN's Global Compact initiative
On February 16, 2010, Ahlstrom signed the United Nations' Global Compact
initiative and registered as one of the supporting participants. By supporting
the initiative, Ahlstrom is committed to voluntarily supporting sustainable
development in its operations with stakeholders. Ahlstrom takes environmental
issues and social matters seriously and actively works to incorporate them in
its strategy and risk management.
The company's Code of Ethics and Sustainability strategy are aligned with the
UN's Global Compact initiative. The company applies the so-called three-legged
approach in the management of sustainable development in its value chain: a
sustainable supply chain of raw materials, eco-efficient manufacturing, and
holistic product life cycle thinking. Economic, social and environmental
responsibilities are taken into consideration in all three areas of the value
chain.
EVENTS AFTER THE REVIEW PERIOD
Revised net sales outlook
Ahlstrom announced on April 19, 2010, that it would change its net sales
estimate. Ahlstrom's demand and net sales in 2010 are expected to increase to
approximately the same levels they were in 2008. The EBIT outlook given in the
financial statements bulletin on February 3, 2010, remains unchanged.
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.
In January-March 2010, a total of 2.9 million Ahlstrom shares were traded for a
total of EUR 33.0 million. The lowest trading price was EUR 9.31 and the highest
EUR 12.52. The closing price on March 31, 2010 was EUR 11.93. The market
capitalization was EUR 555.9 million at the end of March.
Ahlstrom Group's equity per share was EUR 12.86 at the end of the review period
(December 31, 2009: EUR 12.98).
OUTLOOK
Ahlstrom changed its net sales outlook on April 19, 2010. As announced in the
stock exchange release, recovery of demand continued in January-March 2010.
Sales prices in most business areas are being increased to cover the rising raw
material costs, and sales volumes seem to develop slightly more favorably than
anticipated. Therefore demand and net sales in 2010 are expected to increase to
approximately the same levels they were in 2008.
The company will continue to increase sales prices to cover the higher raw
material costs. It will also be ready to further increase sales prices to cover
possible future raw material price increases.
In the Glass & Industrial Nonwovens business area, the market situation for
specialty reinforcements continues to be challenging. However, demand in the
wind turbine and marine industries in Ahlstrom's main markets, Europe and North
America, is expected to recover towards the end of the year.
The more efficient cost structure and improved demand are expected to improve
profitability. Efficiency improvement measures will continue to be a priority.
The EBIT outlook given in the financial statements bulletin remains unchanged.
EBIT excluding non-recurring items is expected to increase from 2009.
In 2010, investments excluding acquisitions are estimated at approximately EUR
60 million (EUR 63.8 million in 2009).
SHORT-TERM RISKS
Based on the development in recent months, the recovery of the world economy
seems promising, but it is difficult to predict the speed and further
development of the recovery. If the recovery from the recession is delayed, it
may be necessary to limit production more than planned, and the risk of
unsuccessful increases of sales prices will grow. For the time being, credit
losses have remained low, but Ahlstrom's customer credit risks have increased
due to the economic situation and are more difficult to cover fully with credit
insurance.
In addition, raw material prices, of pulp, synthetic fibers and polymers in
particular, have been increasing since last summer and they are expected to
remain at a high level in 2010. The earthquake in Chile at the end of February
accelerated the pulp price increases. Sales prices will be actively increased in
order to cover the rising costs. If the prices of raw materials remain at a high
level or continue to rise further, and the increased costs cannot be transferred
to sales prices, the growth in profitability achieved in 2009 and January-March
2010 might be compromised.
Furthermore, the availability of pulp in the world market has become more
difficult as the earthquake in Chile temporarily shut down approximately 8% of
the world's pulp capacity. For the time being, Ahlstrom has been able to
safeguard the availability of pulp, but if the reopening of the Chilean pulp
plants is delayed, the risk of weakening availability may increase again.
The general risks of Ahlstrom's business operations are described in greater
detail on the company website at www.ahlstrom.com <http://www.ahlstrom.com/> and
in the Report of operations in the company's Annual Report 2009. 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, April 29, 2010
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 2010
first quarter results in a Finnish-language press and analyst conference in
Helsinki on April 29, 2010, at 2:00 p.m. Finnish time (EET). The conference will
take place at Event Arena Bank, address Unioninkatu 20, 2(nd) floor. The name of
the meeting room will be displayed on the display board in the lobby.
In addition, President and CEO Lång and CFO Parvi will hold a conference call in
English for analysts and investors on April 29, 2010, at 4:00 pm Finnish time
(EET). To participate in the conference call, please dial +358 (0)9 2319 4345 in
Finland or +44 (0)20 7136 2051 in the UK a few minutes before the conference
begins. The access code is 8978241.
The event can also be viewed as a live audio webcast at www.ahlstrom.com.
Registration is required. It is possible to participate in the Q & A session via
teleconference or online.
An on-demand audio webcast of the conference will be available on Ahlstrom's
website for twelve months after the call.
The presentation material will be available on April 29, 2010 after the interim
report is published, at www.ahlstrom.com > Investors > Reports and presentations
> 2010.
AHLSTROM'S FINANCIAL INFORMATION IN 2010
Ahlstrom will publish its financial information in 2010 as follows:
Report Date of publication Silent period
Interim report January-June Wednesday, August 11 July 1 - August 11
Interim report January-September Tuesday, October 26 October 1 -October 26
During the silent period, Ahlstrom will not communicate with capital market
representatives.
The Annual Report 2009 has been published. It is available in pdf format at
www.ahlstrom.com <http://www.ahlstrom.com/> > Media, where you may also order a
hardcopy of the report.
Distribution:
NASDAQ OMX Helsinki
www.ahlstrom.com
Principal media
Ahlstrom in brief
Ahlstrom is a global leader in the development, manufacture and marketing of
high performance nonwovens and specialty papers. Ahlstrom's products are used in
a large variety of everyday applications, 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 5,800 employees serve customers via sales offices
and production facilities in more than 20 countries on six continents. In 2009,
Ahlstrom's net sales amounted to EUR 1.6 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 | 2010| 2009| 2009|
++---------------------------------------------+------+------+--------+
++---------------------------------------------+------+------+--------+
|Net sales | 441.0| 376.1| 1,596.1|
+----------------------------------------------+------+------+--------+
|Cost of goods sold |-385.3|-347.1|-1,421.5|
+----------------------------------------------+------+------+--------+
|Gross profit | 55.7| 29.0| 174.6|
+----------------------------------------------+------+------+--------+
|Sales and marketing expenses | -13.3| -12.8| -49.6|
+----------------------------------------------+------+------+--------+
|R&D expenses | -4.6| -5.5| -21.6|
+----------------------------------------------+------+------+--------+
|Administrative expenses | -25.0| -23.5| -95.0|
+----------------------------------------------+------+------+--------+
|Other operating income | 2.1| 2.7| 13.4|
+----------------------------------------------+------+------+--------+
|Other operating expense | -0.8| -0.6| -36.3|
+----------------------------------------------+------+------+--------+
|Operating profit / loss | 14.0| -10.7| -14.6|
+----------------------------------------------+------+------+--------+
|Net financial expenses | -6.7| -8.2| -26.2|
+----------------------------------------------+------+------+--------+
|Share of profit / loss of associated companies| -0.0| 0.4| 0.7|
+----------------------------------------------+------+------+--------+
|Profit / loss before taxes | 7.4| -18.6| -40.1|
+----------------------------------------------+------+------+--------+
|Income taxes * | -1.9| 6.2| 7.1|
+----------------------------------------------+------+------+--------+
|Profit / loss for the period | 5.5| -12.4| -32.9|
+----------------------------------------------+------+------+--------+
|Attributable to | | | |
+----------------------------------------------+------+------+--------+
|Owners of the parent | 5.5| -12.4| -32.9|
+----------------------------------------------+------+------+--------+
|Non-controlling interest | -| -| -|
+----------------------------------------------+------+------+--------+
|Earnings per share, EUR | | | |
+----------------------------------------------+------+------+--------+
|- Basic and diluted ** | 0.09| -0.26| -0.72|
+----------------------------------------------+------+------+--------+
* Received tax refund of EUR 1.0 million concerning previous financial years
decreases income taxes reported for the period January-March 2010
** With the effect of interest on hybrid bond for the period, net of tax
+-----------------------------------------------+----+-----+-----+
|STATEMENT OF COMPREHENSIVE INCOME | Q1| Q1|Q1-Q4|
+-----------------------------------------------+----+-----+-----+
|EUR million |2010| 2009| 2009|
++----------------------------------------------+----+-----+-----+
++----------------------------------------------+----+-----+-----+
|Profit / loss for the period | 5.5|-12.4|-32.9|
+-----------------------------------------------+----+-----+-----+
|Other comprehensive income, net of tax: | | | |
+-----------------------------------------------+----+-----+-----+
|Translation differences |23.0| 9.4| 32.5|
+-----------------------------------------------+----+-----+-----+
|Hedges of net investments in foreign operations|-2.0| -0.9| -1.0|
+-----------------------------------------------+----+-----+-----+
|Cash flow hedges |-0.3| 0.0| 0.4|
+-----------------------------------------------+----+-----+-----+
|Other comprehensive income, net of tax |20.7| 8.5| 31.8|
+-----------------------------------------------+----+-----+-----+
|Total comprehensive income for the period |26.2| -3.8| -1.1|
+-----------------------------------------------+----+-----+-----+
|Attributable to | | | |
+-----------------------------------------------+----+-----+-----+
|Owners of the parent |26.2| -3.8| -1.1|
+-----------------------------------------------+----+-----+-----+
|Non-controlling interest | -| -| -|
+-----------------------------------------------+----+-----+-----+
+-------------------------------------------+-------+-------+-------+
|BALANCE SHEET |Mar 31,|Mar 31,|Dec 31,|
+-------------------------------------------+-------+-------+-------+
|EUR million | 2010| 2009| 2009|
++------------------------------------------+-------+-------+-------+
++------------------------------------------+-------+-------+-------+
|ASSETS | | | |
+-------------------------------------------+-------+-------+-------+
|Non-current assets | | | |
+-------------------------------------------+-------+-------+-------+
|Property, plant and equipment | 724.0| 759.0| 717.6|
+-------------------------------------------+-------+-------+-------+
|Goodwill | 158.5| 174.1| 151.3|
+-------------------------------------------+-------+-------+-------+
|Other intangible assets | 53.2| 52.4| 52.1|
+-------------------------------------------+-------+-------+-------+
|Investments in associated companies | 12.0| 11.7| 12.1|
+-------------------------------------------+-------+-------+-------+
|Other investments | 0.2| 0.2| 0.2|
+-------------------------------------------+-------+-------+-------+
|Other receivables | 23.4| 16.0| 23.0|
+-------------------------------------------+-------+-------+-------+
|Deferred tax assets | 59.3| 46.8| 54.5|
+-------------------------------------------+-------+-------+-------+
|Total non-current assets |1,030.7|1,060.2|1,010.8|
+-------------------------------------------+-------+-------+-------+
|Current assets | | | |
+-------------------------------------------+-------+-------+-------+
|Inventories | 181.3| 240.0| 175.9|
+-------------------------------------------+-------+-------+-------+
|Trade and other receivables | 332.2| 335.9| 319.9|
+-------------------------------------------+-------+-------+-------+
|Income tax receivables | 3.6| 7.0| 3.7|
+-------------------------------------------+-------+-------+-------+
|Other investments | -| -| -|
+-------------------------------------------+-------+-------+-------+
|Cash and cash equivalents | 27.2| 16.6| 19.9|
+-------------------------------------------+-------+-------+-------+
|Total current assets | 544.3| 599.7| 519.4|
+-------------------------------------------+-------+-------+-------+
|Total assets |1,575.0|1,659.8|1,530.2|
++------------------------------------------+-------+-------+-------+
++------------------------------------------+-------+-------+-------+
|EQUITY AND LIABILITIES | | | |
+-------------------------------------------+-------+-------+-------+
|Equity attributable to owners of the parent| 599.3| 603.3| 605.6|
+-------------------------------------------+-------+-------+-------+
|Hybrid bond | 80.0| -| 80.0|
+-------------------------------------------+-------+-------+-------+
|Non-controlling interest | -| -| -|
+-------------------------------------------+-------+-------+-------+
|Total equity | 679.3| 603.3| 685.6|
+-------------------------------------------+-------+-------+-------+
|Non-current liabilities | | | |
+-------------------------------------------+-------+-------+-------+
|Interest-bearing loans and borrowings | 183.6| 188.0| 235.1|
+-------------------------------------------+-------+-------+-------+
|Employee benefit obligations | 78.9| 85.1| 78.2|
+-------------------------------------------+-------+-------+-------+
|Provisions | 5.0| 4.3| 5.0|
+-------------------------------------------+-------+-------+-------+
|Other liabilities | 0.7| 0.2| 0.4|
+-------------------------------------------+-------+-------+-------+
|Deferred tax liabilities | 27.9| 16.9| 23.8|
+-------------------------------------------+-------+-------+-------+
|Total non-current liabilities | 296.1| 294.5| 342.5|
+-------------------------------------------+-------+-------+-------+
|Current liabilities | | | |
+-------------------------------------------+-------+-------+-------+
|Interest-bearing loans and borrowings | 219.4| 430.6| 180.7|
+-------------------------------------------+-------+-------+-------+
|Trade and other payables | 366.1| 313.0| 305.1|
+-------------------------------------------+-------+-------+-------+
|Income tax liabilities | 3.5| 3.1| 3.7|
+-------------------------------------------+-------+-------+-------+
|Provisions | 10.6| 15.4| 12.7|
+-------------------------------------------+-------+-------+-------+
|Total current liabilities | 599.6| 762.1| 502.1|
+-------------------------------------------+-------+-------+-------+
|Total liabilities | 895.7|1,056.6| 844.6|
++------------------------------------------+-------+-------+-------+
++------------------------------------------+-------+-------+-------+
|Total equity and liabilities |1,575.0|1,659.8|1,530.2|
+-------------------------------------------+-------+-------+-------+
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, |70.0|209.3|8.3|-1.2|-49.1| -|390.9|628.1| 0.0| -|628.1|
|2009 | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Dividends paid | -| -| -| -| -| -|-21.0|-21.0| -| -|-21.0|
|and other | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Hybrid bond | -| -| -| -| -| -| -| -| -| -| -|
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Interest on | -| -| -| -| -| -| -| -| -| -| -|
|hybrid bond | | | | | | | | | | | |
+---------------++---+-----+---+----+-----+----+-----+-----+----+----+-----+
|Purchases of || | | | | | | | | | | |
|own shares || -| -| -| -| -| -| -| -| -| -| -|
+---------------++---+-----+---+----+-----+----+-----+-----+----+----+-----+
|Change in | | | | | | | | | | | |
|non-controlling| -| -| -| -| -| -| -| -|-0.0| -| -0.0|
|interests | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Share-based | -| -| -| -| -| -| -| -| -| -| -|
|incentive plan | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Total | | | | | | | | | | | |
|comprehensive | -| -| -| 0.0| 8.5| -|-12.4| -3.8| -| -| -3.8|
|income for the | | | | | | | | | | | |
|period | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Equity at | | | | | | | | | | | |
|March 31, |70.0|209.3|8.3|-1.2|-40.7| -|357.6|603.3| -| -|603.3|
|2009 | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Equity at | | | | | | | | | | | |
|January 1, |70.0|209.3|8.3|-0.8|-17.7| -|336.6|605.6| -|80.0|685.6|
|2010 | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Dividends paid | -| -| -| -| -| -|-26.0|-26.0| -| -|-26.0|
|and other | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Hybrid bond | -| -| -| -| -| -| -| -| -| -| -|
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Interest on | -| -| -| -| -| -| -5.6| -5.6| -| -| -5.6|
|hybrid bond | | | | | | | | | | | |
+---------------++---+-----+---+----+-----+----+-----+-----+----+----+-----+
|Purchases of || | | | | | | | | | | |
|own shares || -| -| -| -| -|-0.9| -| -0.9| -| -| -0.9|
+---------------++---+-----+---+----+-----+----+-----+-----+----+----+-----+
|Change in | | | | | | | | | | | |
|Non- | -| -| -| -| -| -| -| -| -| -| -|
|controlling | | | | | | | | | | | |
|interests | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Share-based | -| -| -| -| -| -| 0.0| 0.0| -| -| 0.0|
|incentive plan | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Total | | | | | | | | | | | |
|comprehensive | -| -| -|-0.3| 21.0| -| 5.5| 26.2| -| -| 26.2|
|income for the | | | | | | | | | | | |
|period | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
|Equity at March|70.0|209.3|8.3|-1.2| 3.3|-0.9|310.5|599.3| -|80.0|679.3|
|31, 2010 | | | | | | | | | | | |
+---------------+----+-----+---+----+-----+----+-----+-----+----+----+-----+
+--------------------------------------------------------+-----+-----+------+
|STATEMENT OF CASH FLOWS | Q1| Q1| Q1-Q4|
+--------------------------------------------------------+-----+-----+------+
|EUR million | 2010| 2009| 2009|
++-------------------------------------------------------+-----+-----+------+
++-------------------------------------------------------+-----+-----+------+
|Cash flow from operating activities | | | |
+--------------------------------------------------------+-----+-----+------+
|Profit / loss for the period | 5.5|-12.4| -32.9|
+--------------------------------------------------------+-----+-----+------+
|Adjustments, total | 33.5| 26.5| 146.3|
+--------------------------------------------------------+-----+-----+------+
|Changes in net working capital | 12.7| 25.8| 129.3|
+--------------------------------------------------------+-----+-----+------+
|Change in provisions | -2.2| -4.4| -5.3|
+--------------------------------------------------------+-----+-----+------+
|Financial items |-16.2|-13.3| -28.2|
+--------------------------------------------------------+-----+-----+------+
|Taxes paid | -1.3| -1.5| 0.4|
+--------------------------------------------------------+-----+-----+------+
|Net cash from operating activities | 32.1| 20.9| 209.6|
++-------------------------------------------------------+-----+-----+------+
++-------------------------------------------------------+-----+-----+------+
|Cash flow from investing activities | | | |
+--------------------------------------------------------+-----+-----+------+
|Acquisition of Group companies | -| -| -0.0|
+--------------------------------------------------------+-----+-----+------+
|Purchases of intangible and tangible assets | -7.5|-22.2| -69.8|
+--------------------------------------------------------+-----+-----+------+
|Other investing activities | 0.5| 0.6| 3.5|
+--------------------------------------------------------+-----+-----+------+
|Net cash from investing activities | -7.0|-21.6| -66.3|
++-------------------------------------------------------+-----+-----+------+
++-------------------------------------------------------+-----+-----+------+
|Cash flow from financing activities | | | |
+--------------------------------------------------------+-----+-----+------+
|Dividends paid | -| -| -21.0|
+--------------------------------------------------------+-----+-----+------+
|Repurchase of own shares | -0.9| -| -|
+--------------------------------------------------------+-----+-----+------+
|Payments received on hybrid bond | -| -| 80.0|
+--------------------------------------------------------+-----+-----+------+
|Changes in loans and other financing activities |-17.5|-41.7|-242.6|
+--------------------------------------------------------+-----+-----+------+
|Net cash from financing activities |-18.4|-41.7|-183.6|
++-------------------------------------------------------+-----+-----+------+
++-------------------------------------------------------+-----+-----+------+
|Net change in cash and cash equivalents | 6.6|-42.4| -40.2|
++-------------------------------------------------------+-----+-----+------+
++-------------------------------------------------------+-----+-----+------+
|Cash and cash equivalents at the beginning of the period| 19.9| 58.2| 58.2|
+--------------------------------------------------------+-----+-----+------+
|Foreign exchange adjustment | 0.6| 0.8| 2.0|
+--------------------------------------------------------+-----+-----+------+
|Cash and cash equivalents at the end of the period | 27.2| 16.6| 19.9|
+--------------------------------------------------------+-----+-----+------+
+------------------------------------------------------+-------+-------+-------+
|KEY FIGURES | Q1| Q1| Q1-Q4|
+-+----------------------------------------------------+-------+-------+-------+
| | | 2010| 2009| 2009|
+-+----------------------------------------------------+-------+-------+-------+
+-+----------------------------------------------------+-------+-------+-------+
|Personnel costs | -84.1| -83.5| -337.8|
+------------------------------------------------------+-------+-------+-------+
|Depreciation and amortization | -25.5| -25.3| -106.7|
+------------------------------------------------------+-------+-------+-------+
|Impairment charges | -0.0| -0.0| -31.1|
+-+----------------------------------------------------+-------+-------+-------+
| | | | | |
+-+----------------------------------------------------+-------+-------+-------+
|Operating profit, % | 3.2| -2.9| -0.9|
+------------------------------------------------------+-------+-------+-------+
|Return on capital employed (ROCE), % | 5.2| -3.3| -1.1|
+------------------------------------------------------+-------+-------+-------+
|Return on equity (ROE), % | 3.2| -8.0| -5.0|
+-+----------------------------------------------------+-------+-------+-------+
| | | | | |
+-+----------------------------------------------------+-------+-------+-------+
|Interest-bearing net liabilities, EUR million | 375.9| 601.9| 395.9|
+------------------------------------------------------+-------+-------+-------+
|Equity ratio, % | 43.1| 36.4| 44.8|
+------------------------------------------------------+-------+-------+-------+
|Gearing ratio, % | 55.3| 99.8| 57.7|
+-+----------------------------------------------------+-------+-------+-------+
| | | | | |
+-+----------------------------------------------------+-------+-------+-------+
|Basic earnings per share *, EUR | 0.09| -0.26| -0.72|
+------------------------------------------------------+-------+-------+-------+
|Equity per share, EUR | 12.86| 12.93| 12.98|
+------------------------------------------------------+-------+-------+-------+
|Average number of shares during the period, 1000's | 46,642| 46,671| 46,671|
+------------------------------------------------------+-------+-------+-------+
|Number of shares at the end of the period, 1000's | 46,596| 46,671| 46,671|
+-+----------------------------------------------------+-------+-------+-------+
| | | | | |
+-+----------------------------------------------------+-------+-------+-------+
|Capital expenditure, EUR million | 6.5| 26.9| 63.8|
+------------------------------------------------------+-------+-------+-------+
|Capital employed, at the end of the period, EUR |1,082.4|1,221.9|1,101.5|
|million | | | |
+------------------------------------------------------+-------+-------+-------+
|Number of employees, average | 5,773| 6,173| 5,993|
+------------------------------------------------------+-------+-------+-------+
* 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 2009 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, 2010:
- IFRS 3 Business Combinations (revised)
Some of the main changes to the standard are as follows:
Contingent consideration is measured at fair value at the acquisition date, with
subsequent changes recognized in the income statement.
All acquisition-related costs are expensed.
Any non-controlling interest is measured at either fair value, or at its
proportionate interest in the identifiable assets and liabilities,on a
transaction-by-transaction basis.
- IAS 27 Consolidated and Separate Financial Statements (revised)
The amendment specifies the accounting for changes in ownership interests in
subsidiaries.
- Improvements to IFRS Standards 2009
The effects of the amendments vary by standard but the amendments have had no
major impact on the cosolidated financial statements.
The below mentioned new or amended standards and interpretations adopted by the
Group in 2010 do not have an effect on the consolidated financial statements.
- IAS 39 Financial Instruments: Recognition and Measurement (amendment) -
Eligible Hedged Items
- IFRIC 12 Service Concession Arrangements
- IFRIC 15 Agreements for the Construction of Real Estate
- IFRIC 16 Hedges of a Net Investment in a Foreign Operation
- IFRIC 17 Distributions of Non-cash Assets to Owners
- IFRIC 18 Transfers of Assets from Customers
Income statement by function
The Group has changed the presentation of the income statement from the "nature
of expense" method to the "function of expense" method. The comparable figures
have been restated accordingly.
+-----------------------------------+-------+-------+-------+
|SEGMENT INFORMATION | Q1| Q1| Q1-Q4|
+-----------------------------------+-------+-------+-------+
|EUR million | 2010| 2009| 2009|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | 231.6| 208.8| 861.2|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | 212.3| 170.1| 743.8|
+-----------------------------------+-------+-------+-------+
|Other operations | 4.4| 2.6| 16.3|
+-----------------------------------+-------+-------+-------+
|Internal sales | -7.3| -5.4| -25.2|
+-----------------------------------+-------+-------+-------+
|Total net sales | 441.0| 376.1|1,596.1|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | 1.9| 1.7| 6.4|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | 1.1| 1.3| 3.2|
+-----------------------------------+-------+-------+-------+
|Other operations | 4.2| 2.4| 15.6|
+-----------------------------------+-------+-------+-------+
|Total internal sales | 7.3| 5.4| 25.2|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | 9.5| -2.5| -18.8|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | 7.7| -3.4| 14.6|
+-----------------------------------+-------+-------+-------+
|Other operations | -3.2| -4.9| -10.4|
+-----------------------------------+-------+-------+-------+
|Eliminations | -0.0| -0.0| 0.1|
+-----------------------------------+-------+-------+-------+
|Operating profit / loss | 14.0| -10.7| -14.6|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | 719.5| 796.6| 691.1|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | 342.4| 407.7| 357.4|
+-----------------------------------+-------+-------+-------+
|Other operations | -39.7| -41.8| -5.1|
+-----------------------------------+-------+-------+-------+
|Eliminations | -0.2| -0.2| -0.1|
+-----------------------------------+-------+-------+-------+
|Total net assets |1,022.0|1,162.3|1,043.2|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | 5.1| 24.5| 52.5|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | 1.2| 2.3| 10.7|
+-----------------------------------+-------+-------+-------+
|Other operations | 0.2| 0.2| 0.7|
+-----------------------------------+-------+-------+-------+
|Total capital expenditure | 6.5| 26.9| 63.8|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | -16.4| -15.8| -70.0|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | -8.5| -8.9| -34.3|
+-----------------------------------+-------+-------+-------+
|Other operations | -0.6| -0.6| -2.4|
+-----------------------------------+-------+-------+-------+
|Total depreciation and amortization| -25.5| -25.3| -106.7|
++----------------------------------+-------+-------+-------+
++----------------------------------+-------+-------+-------+
|Fiber Composites | -| -| -31.2|
+-----------------------------------+-------+-------+-------+
|Specialty Papers | -0.0| -0.0| 0.1|
+-----------------------------------+-------+-------+-------+
|Other operations | -| -| -|
+-----------------------------------+-------+-------+-------+
|Total impairment charges | -0.0| -0.0| -31.1|
+-----------------------------------+-------+-------+-------+
Segment information is presented according to the IFRS standards.
+-------------------+-----+-----+-------+
|NET SALES BY REGION| Q1| Q1| Q1-Q4|
+-------------------+-----+-----+-------+
|EUR million | 2010| 2009| 2009|
++------------------+-----+-----+-------+
++------------------+-----+-----+-------+
|Europe |241.5|199.5| 846.3|
+-------------------+-----+-----+-------+
|North America |102.9|105.7| 410.1|
+-------------------+-----+-----+-------+
|South America | 47.4| 36.8| 174.9|
+-------------------+-----+-----+-------+
|Asia-Pacific | 39.9| 26.8| 134.2|
+-------------------+-----+-----+-------+
|Rest of the world | 9.3| 7.3| 30.7|
+-------------------+-----+-----+-------+
|Total net sales |441.0|376.1|1,596.1|
+-------------------+-----+-----+-------+
+------------------------------------------+-----+-----+------+
|CHANGES OF PROPERTY, PLANT AND | | | |
+------------------------------------------+-----+-----+------+
|EQUIPMENT |Q1-Q1|Q1-Q1| Q1-Q4|
+------------------------------------------+-----+-----+------+
|EUR million | 2010| 2009| 2009|
++-----------------------------------------+-----+-----+------+
++-----------------------------------------+-----+-----+------+
|Book value at Jan 1 |717.6|745.7| 745.7|
+------------------------------------------+-----+-----+------+
|Acquisitions through business combinations| -| -| -|
+------------------------------------------+-----+-----+------+
|Additions | 6.5| 26.5| 63.6|
+------------------------------------------+-----+-----+------+
|Disposals | -0.1| -0.0| -1.0|
+------------------------------------------+-----+-----+------+
|Depreciations and impairment charges |-24.1|-23.8|-106.9|
+------------------------------------------+-----+-----+------+
|Translation differences and other changes | 24.2| 10.7| 16.1|
+------------------------------------------+-----+-----+------+
|Book value at the end of the period |724.0|759.0| 717.6|
+------------------------------------------+-----+-----+------+
+--------------------------------------+-----+-----+-----+
|TRANSACTIONS WITH RELATED PARTIES |Q1-Q1|Q1-Q1|Q1-Q4|
+--------------------------------------+-----+-----+-----+
|EUR million | 2010| 2009| 2009|
++-------------------------------------+-----+-----+-----+
++-------------------------------------+-----+-----+-----+
|Transactions with associated companies| | | |
+--------------------------------------+-----+-----+-----+
|Sales and interest income | 0.1| 0.1| 0.5|
+--------------------------------------+-----+-----+-----+
|Purchases of goods and services | -0.5| -0.7| -2.4|
+--------------------------------------+-----+-----+-----+
|Trade and other receivables | 0.0| 1.5| 0.0|
+--------------------------------------+-----+-----+-----+
|Trade and other payables | 0.3| 0.2| 0.2|
+--------------------------------------+-----+-----+-----+
Market prices have been used in transactions with associated companies.
+-------------------+-------+-------+-------+
|OPERATING LEASES |Mar 31,|Mar 31,|Dec 31,|
+-------------------+-------+-------+-------+
|EUR million | 2010| 2009| 2009|
++------------------+-------+-------+-------+
++------------------+-------+-------+-------+
|Current portion | 6.7| 6.2| 6.6|
+-------------------+-------+-------+-------+
|Non-current portion| 19.6| 17.0| 20.4|
+-------------------+-------+-------+-------+
|Total | 26.3| 23.2| 27.0|
+-------------------+-------+-------+-------+
+--------------------------------------------------+-------+-------+-------+
|COLLATERALS AND COMMITMENTS |Mar 31,|Mar 31,|Dec 31,|
+--------------------------------------------------+-------+-------+-------+
|EUR million | 2010| 2009| 2009|
+--------------------------------------------------++------+-------+-------+
+--------------------------------------------------++------+-------+-------+
|Mortgages | 73.0| -| 73.0|
+--------------------------------------------------+-------+-------+-------+
|Pledges | 0.3| 0.4| 0.3|
+--------------------------------------------------+-------+-------+-------+
|Commitments | | | |
+--------------------------------------------------+-------+-------+-------+
|Guarantees given on behalf of group companies | 20.1| 39.2| 19.6|
+--------------------------------------------------+-------+-------+-------+
|Guarantees given on behalf of associated companies| 1.0| 3.1| 2.1|
+--------------------------------------------------+-------+-------+-------+
|Capital expenditure commitments | 7.7| 21.4| 10.2|
+--------------------------------------------------+-+-----+-------+-------+
|Other commitments | | 3.0| 3.8| 3.6|
+--------------------------------------------------+-+-----+-------+-------+
+-------------------------------------------+------+------+------+------+------+
|QUARTERLY DATA | Q1| Q4| Q3| Q2| Q1|
+-------------------------------------------+------+------+------+------+------+
|EUR million | 2010| 2009| 2009| 2009| 2009|
++------------------------------------------+------+------+------+------+------+
++------------------------------------------+------+------+------+------+------+
|Net sales | 441.0| 420.5| 400.6| 398.9| 376.1|
+-------------------------------------------+------+------+------+------+------+
|Cost of goods sold |-385.3|-378.1|-346.9|-349.4|-347.1|
+-------------------------------------------+------+------+------+------+------+
|Gross profit | 55.7| 42.4| 53.7| 49.5| 29.0|
+-------------------------------------------+------+------+------+------+------+
|Sales and marketing expenses | -13.3| -13.2| -11.9| -11.7| -12.8|
+-------------------------------------------+------+------+------+------+------+
|R&D expenses | -4.6| -5.7| -5.5| -4.9| -5.5|
+-------------------------------------------+------+------+------+------+------+
|Administrative expenses | -25.0| -22.3| -24.1| -25.1| -23.5|
+-------------------------------------------+------+------+------+------+------+
|Other operating income | 2.1| 5.3| 2.0| 3.5| 2.7|
+-------------------------------------------+------+------+------+------+------+
|Other operating expense | -0.8| -33.0| -1.1| -1.6| -0.6|
+-------------------------------------------+------+------+------+------+------+
|Operating profit / loss | 14.0| -26.6| 13.1| 9.7| -10.7|
+-------------------------------------------+------+------+------+------+------+
|Net financial expenses | -6.7| -6.4| -6.8| -4.8| -8.2|
+-------------------------------------------+------+------+------+------+------+
|Share of profit / loss of associated | -0.0| -0.4| 1.0| -0.3| 0.4|
|companies | | | | | |
+-------------------------------------------+------+------+------+------+------+
|Profit / loss before taxes | 7.4| -33.4| 7.3| 4.7| -18.6|
+-------------------------------------------+------+------+------+------+------+
|Income taxes | -1.9| 5.5| -2.4| -2.2| 6.2|
+-------------------------------------------+------+------+------+------+------+
|Profit / loss for the period | 5.5| -27.9| 4.9| 2.5| -12.4|
++------------------------------------------+------+------+------+------+------+
++------------------------------------------+------+------+------+------+------+
|Attributable to | | | | | |
+-------------------------------------------+------+------+------+------+------+
|Owners of the parent | 5.5| -27.9| 4.9| 2.5| -12.4|
+-------------------------------------------+------+------+------+------+------+
|Non-controlling interest | -| -| -| -| -|
+-------------------------------------------+------+------+------+------+------+
+---------------------------------+-----+-----+-----+-----+-----+
|QUARTERLY DATA BY SEGMENT | Q1| Q4| Q3| Q2| Q1|
+---------------------------------+-----+-----+-----+-----+-----+
|EUR million | 2010| 2009| 2009| 2009| 2009|
++--------------------------------+-----+-----+-----+-----+-----+
++--------------------------------+-----+-----+-----+-----+-----+
|Net sales | | | | | |
+---------------------------------+-----+-----+-----+-----+-----+
|Fiber Composites |231.6|223.4|216.5|212.4|208.8|
+---------------------------------+-----+-----+-----+-----+-----+
|Specialty Papers |212.3|199.6|185.9|188.2|170.1|
+---------------------------------+-----+-----+-----+-----+-----+
|Other operations and eliminations| -2.9| -2.5| -1.8| -1.7| -2.8|
+---------------------------------+-----+-----+-----+-----+-----+
|Group total |441.0|420.5|400.6|398.9|376.1|
++--------------------------------+-----+-----+-----+-----+-----+
++--------------------------------+-----+-----+-----+-----+-----+
|Operating profit / loss | | | | | |
+---------------------------------+-----+-----+-----+-----+-----+
|Fiber Composites | 9.5|-30.4| 8.8| 5.3| -2.5|
+---------------------------------+-----+-----+-----+-----+-----+
|Specialty Papers | 7.7| 3.8| 7.3| 6.8| -3.4|
+---------------------------------+-----+-----+-----+-----+-----+
|Other operations and eliminations| -3.2| -0.0| -3.0| -2.4| -4.9|
+---------------------------------+-----+-----+-----+-----+-----+
|Group total | 14.0|-26.6| 13.1| 9.7|-10.7|
+---------------------------------+-----+-----+-----+-----+-----+
+-------------------------------------------+------+------+------+------+------+
|KEY FIGURES QUARTERLY | Q1| Q4| Q3| Q2| Q1|
+-------------------------------------------+------+------+------+------+------+
|EUR million | 2010| 2009| 2009| 2009| 2009|
+-+-----------------------------------------+------+------+------+------+------+
+-+-----------------------------------------+------+------+------+------+------+
|Net sales | 441.0| 420.5| 400.6| 398.9| 376.1|
+-------------------------------------------+------+------+------+------+------+
|Operating profit / loss | 14.0| -26.6| 13.1| 9.7| -10.7|
+-------------------------------------------+------+------+------+------+------+
|Profit / loss before taxes | 7.4| -33.4| 7.3| 4.7| -18.6|
+-------------------------------------------+------+------+------+------+------+
|Profit / loss for the period | 5.5| -27.9| 4.9| 2.5| -12.4|
+-+-----------------------------------------+------+------+------+------+------+
| | | | | | | |
+-+-----------------------------------------+------+------+------+------+------+
|Gearing ratio, % | 55.3| 57.7| 81.9| 92.0| 99.8|
+-------------------------------------------+------+------+------+------+------+
|Return on capital employed (ROCE), % | 5.2| -9.4| 4.8| 3.2| -3.3|
+-------------------------------------------+------+------+------+------+------+
|Basic earnings per share *, EUR | 0.09| -0.61| 0.10| 0.05| -0.26|
+-------------------------------------------+------+------+------+------+------+
|Average number of shares during the period,|46,642|46,671|46,671|46,671|46,671|
|1000's | | | | | |
+-------------------------------------------+------+------+------+------+------+
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)
Basic earnings per share, EUR
Profit (loss) for the period - Non-controlling interest - Interest on hybrid
bond for the period after taxes/
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 after taxes/
Average diluted number of shares
during the period
Equity per share, EUR
Equity attributable to owners of the
parent/
Number of shares at the end of the
period
*Ahlstrom reports its business in two segments, Fiber Composites and Specialty
Papers. The Fiber Composites segment comprises the Advanced Nonwovens,
Filtration, Glass & Industrial Nonwovens and Home & Personal Nonwovens business
areas. Ahlstrom's Specialty Papers segment comprises the Release & Label and the
Technical Papers business areas.
*Ahlstrom reports its business in two segments, Fiber Composites and Specialty
Papers. The Fiber Composites segment comprises the Advanced Nonwovens,
Filtration, Glass & Industrial Nonwovens and Home & Personal Nonwovens business
areas. Ahlstrom's Specialty Papers segment comprises the Release & Label and the
Technical Papers business areas.
Personnel figures are calculated as FTE (full-time equivalent).
[HUG#1409861]
