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Suominen Releases 3Q Results

October 27, 2009

Suominen's thrid quarter sales fall.

Suominen has released its third quarter results for 2009. The company generated net sales of €44.2 million in the third quarter. Operating profit was €1.0 million. Net sales for the nine-month period totaled €134.5 million, a decline of 18% compared to the same period in 2008. Almost one third of the decline resulted from a decrease in raw material prices and its impact on sales prices. The decrease in sales is presumed to be attributable to consumers’ shift towards less expensive product categories of daily consumer goods and weaker consumer demand, according to the company.

During the period under review, net sales of the wiping business area totaled €85.8 million, a decrease of 21% from the same period last year. The business area’s operating profit was €3.4 million.

Net sales of Codi Wipes reached€47.7 million, a drop of 14% on the previous year. Sales declined most clearly in personal care wipes and in particular in household wipes, with a less marked decline in baby wipes. In addition, the discarding of unprofitable product groups during the first half of the year reduced net sales. The sales margins improved over the previous year. The unit’s rationalization program progressed according to plan, and operating expenses decreased considerably. The automatic line included in the rationalization program was delivered at the end of the period, and production is scheduled to start at the beginning of the final quarter.

Net sales of nonwovens decreased by 27% to €44.4 million. Delivery volumes of nonwovens for wipes fell both in Europe and the U.S.Deliveries of hygiene product materials also fell slightly below the level of the previous year, while the sales of health care products remained on level with the previous year. Average sales prices fell in line with the decrease in raw material prices, the sales margins improved over the previous year. In a compressed timetable, the unit developed a new raw material-saving nonwoven tailored to the market situation. Its sales took off well during the summer. Likewise, deliveries to the Russian market grew rapidly. Operating expenses decreased considerably, production efficiency improved and the amount of wastage decreased compared to 2008.

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