Breaking News

Suominen's Profits Expected to Fall

December 23, 2008

Wipes unit to lay off 40.

Suominen Corporation reported that its underlying operating profit excluding one-offs is expected to be below that of previous year. In the Q3 Interim Report, Suominen expected that the underlying operating profit will be on the level of the previous year at the best and the whole year result was expected to be negative.

Non-cash impairment charges of €2.5 million are related to write-down of the book values of goodwill and tangible assets in the nonwovens business unit. Impairment test calculations have been made to cash-generating units. Due to uncertain general economic situation, assumed risk in the calculations is higher than it was earlier.

Non-recurring costs are booked mainly due to headcount reductions in the Wet Wipes business unit. Local employee negotiations have been started in the unit aiming at reducing full time employees by 40 persons to improve the unit's competitiveness. Production will be allocated to more profitable products and customers, and productivity will be improved by new automation line. The impact of improvement in margins and cost savings is expected to be close to  €2 million on an annual basis.

Related Application:

  • The Year That Was 2016

    The Year That Was 2016

    Karen McIntyre, Editor||December 1, 2016
    The year 2016 included investments, new product development and an entrepreneurial spirit in nonwovens that will surely impac

  • Meltblown Nonwovens Report

    Meltblown Nonwovens Report

    Karen McIntyre, Editor||November 7, 2016
    Diverse technology offers opportunities in a range of markets.

  • Airlaid Market Readies For New Investment

    Airlaid Market Readies For New Investment

    Karen McIntyre, Editor||October 11, 2016
    After years of caution, manufacturers brace for new capacity.