Suominen Reports Audited Consolidated Earnings Results for the Fourth Quarter and Year Ended Dec. 31, 2016; Provides Earnings Guidance for the Year of 2017
January 31, 2017 at 03:30 pm IST
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Suominen reported audited consolidated earnings results for the fourth quarter and year ended Dec. 31, 2016. For the quarter, the company reported net sales of EUR 100,365,000 compared to EUR 104,244,000 a year ago. Operating profit was EUR 3,540,000 compared to EUR 4,262,000 a year ago due to lowered sales volumes and pricing pressure created by tightened competition. Profit before income taxes was EUR 2,391,000 compared to EUR 2,903,000 a year ago. Profit for the period was EUR 1,632,000 or EUR 0.03 per basic and diluted share compared to EUR 1,919,000 or EUR 0.03 per basic and diluted share a year ago. Cash flow from operations per share was EUR 0.07 compared to EUR 0.22 a year ago. Net sales were affected by both lower sales prices and volumes compared to last year, approximately in equal proportions.
For the year, the company reported net sales of EUR 416,862,000 compared to EUR 444,042,000 a year ago. Operating profit was EUR 25,622,000 compared to EUR 31,778,000 a year ago. The decline in the operating profit was due to lowered sales volumes and pricing pressure created by tightened competition. Profit before income taxes was EUR 22,432,000 compared to EUR 26,476,000 a year ago. Profit for the period was EUR 15,233,000 or EUR 0.26 per diluted share compared to EUR 17,020,000 or EUR 0.29 per diluted share a year ago. Cash flow from operations was EUR 28,496,000 compared to EUR 27,274,000 a year ago. Investments in property, plant and equipment and intangible assets were EUR 49,553,000 compared to EUR 22,369,000 a year ago. Cash flow from operations per share was EUR 0.56 compared to EUR 0.54 a year ago. Interest-bearing net debt as at Dec. 31, 2016 was EUR 56,589,000 compared to EUR 32,499,000 a year ago.
The company expects that for the full year 2017, its net sales will improve from year 2016. Also the comparable operating profit is estimated to improve from year 2016, provided that the new production line at the Bethune plant will be started up as planned. In 2016, Suominen's net sales amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million.
Suominen Oyj is a Finland-based company engaged in the production of hygiene paper products. It manufactures and supplies nonwoven roll goods for wipes, as well as for medical and hygiene products. After the divestiture in July 2014, the Company operates one business area, Nonwovens, which comprises development and manufacture of nonwovens for various wiping products, such as baby, toddler and personal hygiene products, as well as goods for household and professional use. Additionally, it supplies nonwovens for hygiene and medical applications, such as wound care products. Its customers include international brand owners and private label manufacturers. The Company operates production plants in Finland, Italy, Spain, Brazil and the United States. In July 2014, it completed divestment of its flexible packaging business.
Suominen Reports Audited Consolidated Earnings Results for the Fourth Quarter and Year Ended Dec. 31, 2016; Provides Earnings Guidance for the Year of 2017