Suominen Corporation generated net sales of €13.1 million in the second quarter. Operating profit before non-recurring items was €2.4 million.
Net sales for the first half of the year totaled €224.2 million. Operating profit before non-recurring items was €5.1 million. Comparable net sales decreased by 10% on the previous year compared to the €249.6 million in pro forma net sales. The decrease in net sales was affected by a decline in volumes and reduced sales prices in Europe.
The most significant factor affecting the decrease in European volumes was the burning down of the spunlace line in Italy in the autumn of last year; the line was not restarted until May. Regionally, demand was stronger in the U.S. markets than in Europe. The strengthening of the dollar against the euro increased the U.S. share of net sales in the pro forma comparison.
Operating profit before non-recurring items, improved due to the Wiping business area’s result turning positive. Non-recurring costs equaled €2.2 million. The previous year’s pro forma operating profit was €2.1 million, so, the result improved in comparison to that as well. The prices of plastic-based raw materials affecting raw material costs peaked at the start of the second quarter and then turned into a slight decline. Operating expenses were slightly lower than the previous year’s comparable expenses.
“During second quarter our development continued in the same direction as in the first quarter,” says Nina Kopola, President & CEO. “The operating profit before non-recurring items, €2.4 million was close to the number from first quarter €2.7 million. Our result before non-recurring items improved clearly also compared to pro forma numbers from last year.”
In June the company concluded the codetermination negotiations at Suominen Nonwovens Ltd, which will lead to a reduction of 76 positions at maximum, she adds. “We will concentrate on spunlace production in the Nakkila plant, which means the thermobond nonwovens will cease. By closing down one spunlace line we will be more effective and safeguard our competiveness also in the future.”
“Our renewed company is coming together and the new Suominen is taking shape, not only financially but also through the work we are doing to establish common operating systems and a common corporate culture,” Koploa says. “Considering Nonwovens already today represents more than 75% of our total business we will direct more resources to the business and enforce it further.”