Suominen Corp posts double digit growth in Q1 sales

Highlights in January-March 2013:

-Net sales grew by 10% and amounted to EUR 122.0 million (111.0)

-Operating profit excluding non-recurring items grew by 81% to EUR 4.9 million (2.7)

-Suominen repeats its estimate according to which the company expects its net sales for the full year 2013 to remain at the level of 2012. Operating profit excluding non-recurring items is expected to improve from year 2012.

Nina Kopola, President and CEO:

“In the European markets, consumers’ confidence in their personal financial situation improved slightly since the turn of the year, but purchasing behavior remained relatively cautious. However, in North America, Suominen’s other main market area; the operating environment also in January–March 2013 was more favorable than it was in Europe.

Suominen had a positive start to 2013. Our net sales increased to EUR 122.0 million (111.1), and with our operating profit reaching EUR 4.9 million (3.2), our profitability also improved. Good demand for nonwovens, particularly in North America, boosted our net sales, but the European markets also developed favorably. The leaner cost structure we achieved through our Summit program, which ended in March, was reflected in our first quarter results, showing a significant improvement in profitability.

In addition, I am especially pleased with Flexibles’ development in the first quarter. Some of the measures of the business recovery program launched at the start of the year are already beginning to show in the segment’s key figures. The Flexibles segment’s net sales grew and operating profit turned positive.

“The Nonwovens business unit, which is part of the Wiping segment and makes up roughly 80% of our net sales, showed stable development in the first quarter of the year. We will steadfastly continue with the implementation of our strategy, which was renewed at the end of last year, and within that framework we are launching two new business development programs in the Nonwovens business area. The goals of these programs are to harmonize processes and to further improve product development, which will enable us to accelerate our customers’ business and increase the share of products with higher added value in our portfolio, in keeping with Suominen’s strategy.”

Suominen Corporation