Vaahto Group Interim Management Statement for September 1, 2007 – November 30,2007
VAAHTO GROUP PLC OYJ STOCK EXCHANGE BULLETIN 17.1.2008 9.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2007 – NOVEMBER 30, 2007
In the period under review, Vaahto Group’s turnover and result developed as expected. The Group’s turnover for September 1, 2007 – November 30, 2007 was 23.0 million euros (16.2 million euros for the corresponding period in the previous fiscal year), with an operating profit of 1.4 million euros (0.2 million euros). Turnover grew by 42 percent, and the operating profit was clearly higher than in the reference period. The order backlog decreased during the period under review, amounting to 42.9 million euros at the beginning of the period and 36.5 million euros at the end.
Pulp & Paper Machinery
The Pulp & Paper Machinery division’s turnover for September 1, 2007 – November 30, 2007 was 13.9 million euros (about 8.7 million euros). The turnover increased by as much as 60 percent from that of the reference period, since deliveries for several significant projects took place in late 2007. In spite of the high turnover figures, the division’s profitability fell short of the targets set for the period.
Since several project deliveries were completed in the period under review, the Pulp & Paper Machinery division’s order backlog decreased during the period. However, the division is still processing a significant number of projects in the offer phase. Operations of the subsidiary company established in Shanghai during the previous fiscal year have gotten off to a good start, and it has considerably improved the division’s competitive position in the Chinese market.
The Process Machinery division’s turnover for September 1, 2007 – November 30, 2007 was 9.1 million euros (comparative: about 7.5 million euros). The turnover was 21 percent higher than that of the reference period, showing growth in both the vessel and agitator fields. Both product groups met the targets set for profitability.
During the period under review, Vaahto Oy signed an agreement to sell its spiral heat exchanger business, which belonged to the Process Machinery division, to the German HES Heat Exchanger Systems GmbH. The sale includes the spiral heat exchanger production line and its machinery and equipment, with related intangible rights. Under the agreement, Vaahto Oy is responsible for the manufacture and delivery of the existing order backlog. The production machines and equipment will be transferred to the buyer gradually in spring 2008. The annual turnover for spiral heat exchanger business has fluctuated between two and four million euros.
The Process Machinery division’s market situation has remained excellent, and the order backlog is good for both vessels and agitators.
Estimate for the September 1, 2007 – August 31, 2008 fiscal year
Vaahto Group’s order backlog decreased in the period under review, and this poses challenges for turnover and profitability development in the rest of the fiscal year.
Interim report for September 1, 2007 – February 29, 2008
Vaahto Group will publish a six-month interim report on April 18, 2008.
Lahti January 17, 2008
VAAHTO GROUP PLC OYJ
Board of Directors
Vaahto Group Plc Oyj
Tel. +358 40 8232835