First quarter financial results have been released by Suominen Corporation, Helsinki, Finland. Net sales for the first quarter totaled €54.3 million, up 10% from €49.3 in the corresponding 2006 period. Sales volume developed strongly in all units. Operating profit was €1.3 million compared to €0.6 in the year-earlier quarter. Profit before taxes reached €0.3 million and profit after taxes was €0.2 million. The company attributes its first quarter profit to strong sales development and efficiency-enhancement measures. Net sales during 2007 are expected to increase and Suominen’s operating profit and results are expected to improve on those of 2006.
According to Suominen, prices for raw materials rose on the corresponding period in 2006 while energy and transportation costs decreased. The company's gross investments in production totaled €2.3 million, of which Wet Wipes accounted for €0.8 million, Nonwovens €0.4 million and Flexible Packaging €1.1 million.
During the period under review, net sales of the Wipes and Nonwovens business area totaled €34.5 million, an increase of 12% over the corresponding period in 2006, as sales of both wet wipes and nonwovens continued to grow. Internal deliveries decreased. External purchases of nonwovens for use in standard wet wipes increased as planned. The Wipes and Nonwovens business area recorded an operating profit of €0.6 million, an increase from €-0.4 in the first quarter of last year.
Net sales of Wet Wipes totaled €18 million and rose by 7% on the
previous year due to increased sales volumes. Average sales prices fell slightly. According to Suominen, growth in the European wet wipe markets continued. In the Nonwovens sector, net sales increased by 6% to €17.9 million thanks to increased sales of hydroentangled material. Sales of thermally bonded nonwovens remained at the same level as the previous year. Average sales prices were at the same level as the corresponding period in 2006.