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Suominen Continues Efficiency Measures

Published February 5, 2008
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For the last quarter of 2007, Suominen Corporation has written off a total of €8 million of the book values of its goodwill. These write-offs relate to the wet wipes and nonwovens business operations and have no effect on cash flow. The uncertainty relating to the amount and timing of future cash flows from these cash-generating units is estimated to have increased, which decreases the units’ values in use.

Suominen is continuing its efficiency-enhancement programs to generate cost savings, to continuously improve its operations and to increase sales based on its own product offering. In 2007, cost savings and efficiency-enhancement measures generated some €4 million. In 2008, the company’s aim is to achieve at least an equal result in efficiency-enhancement.

After the goodwill write-off, Suominen’s operating profit and result after taxes for 2007 were negative. The comparable underlying operating profit improved, but the underlying result after taxes was negative. Suominen’s goodwill after the write-off amounts to €26 million.