Vaahto Group Interim Management Statement for September 1, 2009 – January 15, 2010
VAAHTO GROUP PLC OYJ STOCK EXCHANGE BULLETIN 15.01.2010 at 9.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2009 – JANUARY 15, 2010
Vaahto Group’s turnover for September 1, 2009, to November 30, 2009, was 9.2 million euros (compared with 17.0 million euros for the corresponding period in the previous fiscal year), with an operating loss of 1.7 million euros (comparative: operating loss of 0.8 million euros). The turnover saw a decrease of 46% from that of the reference period, undermining the result. Vaahto Group’s order backlog decreased by 12% during the period under review; it was 17.1 million euros at the beginning of the period and 15.1 million euros at the end.
Pulp & Paper Machinery
The Pulp & Paper Machinery division’s turnover for September 1, 2009, to November 30, 2009, was 6.2 million euros (8.5 million euros), with an operating loss of 1.6 million euros (operating loss of 1.4 million euros). The turnover decreased by 27% from the reference period’s, making the result lower than in the reference period.
The market situation for this division is difficult, and the period saw the order book decrease. In the Projects business area, the number of projects in the offer phase increased during the period under review, but the number of new orders remained low. In the Service business area, some signs of improvement were detected during the period, and the order book saw an upturn.
The Board of Directors of the parent company decided to establish a production unit for the Pulp & Paper Machinery division in China. The objective is to start production in China during 2010.
The Process Machinery division’s turnover for September 1, 2009, to November 30, 2009, was 3.1 million euros (8.4 million euros), with an operating loss of 0.1 million euros (operating profit of 0.7 million euros). The turnover decreased by 64% from that of the reference period, making the result lower than the comparative figure.
The Process Machinery division’s market situation is still weak. However, slight improvement was detected in the market during the period under review, and the division’s order book increased slightly for both vessels and agitators.
Outlook for the September 1, 2009 – August 31, 2010, fiscal year
The international market situation has remained weak, although slight improvement has been detected lately. Vaahto Group’s order book decreased significantly during the previous fiscal year, and the starting point for the current fiscal year therefore was difficult. In the course of the period under review, the Group companies continued extensive measures to adjust their operations to the weaker demand and market situation.
As a consequence of the poor order book, the first half of the fiscal year will be difficult. Since the international market situation seems to be picking up, however, the development of Vaahto Group’s results is expected to improve towards the end of the fiscal year.
Interim report for September 1, 2009 – February 28, 2010
Vaahto Group will issue a six-month interim report on April 9, 2010.
Lahti, January 15, 2010
VAAHTO GROUP PLC OYJ
Board of Directors
For more information, please contact:
CEO, Vaahto Group Plc Oyj
Tel.: +358 50 466 1470