Ahlstrom Corporation STOCK EXCHANGE RELEASE January 30, 2014 at 11.55
Ahlstrom to expand its rightsizing program to EUR 50 million
Ahlstrom, a global high performance fiber-based materials company, expands its
rightsizing program from the previously communicated EUR 35 million to EUR 50
million. The majority of the planned actions related to the rightsizing program
will be realized by the end of 2014, and the full impact of the program is
expected to be visible in 2015.
As a result of the planned program, Ahlstrom's personnel is estimated to be
reduced by approximately 400 people globally at the maximum, instead of the
earlier estimated 350 people as communicated with the previous cost savings
target on August 7, 2013.
"Improving our financial performance is our highest priority this year. The
earlier announced program is proceeding as planned, but to deliver the targeted
profitability improvement, we need to further reduce our costs now that the
major transactions relating to our specialty paper and wipes businesses have
been completed, " said Jan Lång, President & CEO.
"In addition to streamlining our costs, we are determined to improve our margins
through driving new growth with our current businesses, supported by our
enhanced product offering and increased share of new products in our sales mix,"
The targeted savings will be derived from all business areas and functions
globally. In particular, the aim is to reduce selling, general and
administration (SGA) costs and further improve supply chain efficiency. The aim
is to bring the SGA costs back to a level of 10-11% of net sales in 2015.
The planned changes and personnel impacts are subject to employee consultation
processes, which will be initiated according to local legislation in the
Ahlstrom plans to book non-recurring costs of approximately EUR 15 million
related to rightsizing during the years 2014-2015. The company will continue to
provide an update on the progress with the rightsizing program in its quarterly
For more information, please contact:
Vice President, Communications
Tel. +358 10 888 4757
Ahlstrom in brief
Ahlstrom is a high performance fiber-based 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, medical gowns
and drapes, diagnostics, wallcoverings, flooring and food packaging. We have a
leading market position in the businesses in which we operate. In 2012,
Ahlstrom's net sales from the continuing operations (excluding Label and
Processing business) amounted to EUR 1 billion. Our 3,800 employees serve
customers in 24 countries. Ahlstrom's share is quoted on the NASDAQ OMX
Helsinki. More information available at www.ahlstrom.com.