Demand recovery continues for Ahlstrom

29 April 2010, Helsinki - In its interim report published today, Ahlstrom Corporation says the recovery of demand that started towards the end of 2009, continued in January-March 2010.

The company says that since sales prices in most business areas are being increased to cover rising raw material costs, and sales volumes seem to be developing slightly more favourably 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 and EBIT excluding non-recurring items is expected to increase from 2009.

The main numbers for the period are:

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).

Ahlstrom’s new plant in the Mundra special economic zone in India, which manufactures medical nonwovens, was opened as planned. The company says the Asian market situation looks encouraging after it has invested approximately EUR 42 million in the plant.

The project to reduce operative working capital, launched at the beginning of 2009, continued and 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.

“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,” said Jan Lång, Ahlstrom’s President and CEO.

“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. In addition, 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, Mr Lång added.