Vaahto Group Interim management Statement for September 1, 2010 – January 14, 2011
VAAHTO GROUP PLC OYJ STOCK EXCHANGE BULLETIN 14.1.2011 at 9.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2010 – JANUARY 14, 2011
In the period under review, Vaahto Group’s turnover and result developed as expected. The Group’s turnover for September 1, 2010 – November 30, 2010, was 10.9 million euros (9.2 million euros for the corresponding period in the previous fiscal year), with an operating loss of 0.3 million euros (operating loss of 1.7 million euros). Turnover grew by 18% from the reference period, and the operating result was better than in the comparative period. The Group’s order book increased by 70% in the review period and stood at 25.7 million euros on November 30, 2010. Vaahto Group’s result is expected to improve significantly from the previous fiscal year’s figure, and the full-year result is expected to be positive.
Pulp & Paper Machinery
The Pulp & Paper Machinery division’s turnover for September 1, 2010 – November 30, 2010, was 7.3 million euros (6.2 million euros), with an operating profit of 0.1 million euros (operating loss of 1.6 million euros). Turnover grew by 17% from the reference period, and the operating result was clearly better than in the comparative period.
The market situation for the Pulp & Paper Machinery division has remained good, and the order backlog increased considerably during the period. In the project business, the most significant orders were the orders in September for four headboxes from Dongguan Jianhui Paper Co. Ltd. and Dongguan Jinzhou Paper Co. Ltd., both from China, and an order for modernization of Fajar Paper’s board machine in Indonesia. Furthermore, in December Vaahto Pulp & Paper Machinery received an order for five headboxes from Vantage Dragon Ltd. for two new packaging board production lines to be delivered to China.
The status of the markets for the Pulp & Paper Machinery division has remained stable, and the outlook for the fiscal year is good. Vaahto Service’s product selection for paper machine servicing has expanded in line with objectives.
Process Machinery
The Process Machinery division’s turnover for September 1, 2010 – November 30, 2010, was 3.6 million euros (3.1 million euros), with an operating loss of 0.4 million euros (operating loss of 0.1 million euros). The turnover increased by 19% from that of the reference period, but the result was still lower than the comparative figure. The result was affected by poor profitability of delivery projects in the vessel business during the period under review.
The market situation for the vessel business of the Process Machinery division has picked up, and the number of projects in the offer phase has been on the increase. The market situation in the agitator business has remained good, and the order book grew during the review period.
Outlook for the September 1, 2010 – August 31, 2011, fiscal year
The international market situation in the main sectors of Vaahto Group’s operation has improved. Demand is strong, particularly in Chinese and other Asian markets, and there are also signs of improvement in Europe.
In the period under review, Vaahto Group’s order book has grown significantly, enabling profitable business operations. Vaahto Group’s result is forecast to improve significantly from the previous period’s figure, and the full-year result is expected to be positive.
Interim report for September 1, 2010 – February 28, 2011
Vaahto Group will issue a six-month interim report on April 8, 2011.
In Lahti on January 14, 2011
VAAHTO GROUP PLC OYJ
Board of Directors
For more information, please contact:
Anssi Klinga
CEO, Vaahto Group Plc Oyj
Tel.: +358 50 466 1470
Vaahto Group is globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery.