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Suominen Sees Drop In Sales

June 1, 2009

Suominen Corporation generated net sales of €46.9 million in the first quarter. down 14% from €54.5 during the year-ago first quarter. Operating profit was €3.6 million, up from -€0.1 million in the same quarter of 2008. The company attributes decreased sales volumes to a decline in customer stock levels and a general reduction in consumer demand. On the positive side, the margins for sales improved, prices resumed a slight uptrend and cost levels were more favorable than in the corresponding period in 2008. Suominen’s cost-saving and operational enhancement programs have continued, which brought operating expenses to a substantially lower level than in 2008.

In terms of individual segment results, net sales of the Wiping business area totaled €30.4 million, a decrease of 15% from the corresponding period in 2008. The business area’s operating profit was €1.4 million. Meanwhile, net sales of Nonwovens decreased 18% to €16.8 million. Delivery volumes of nonwovens for wipes declined both in Europe and the U.S., while deliveries of material for hygiene and health care products were on the level of the previous year. Suominen reacted to the lower demand during the first quarter with a shutdown for the winter holidays and a short temporary layoff period affecting its entire staff. According to the company, operating expenses decreased considerably on the previous year and the efficiency of production improved further as the yield of production increased and the amount of waste decreased.

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