Vaahto Group Interim Management Statement for September 1, 2010 – July 1, 2011
VAAHTO GROUP PLC OYJ STOCK EXCHANGE BULLETIN 1.6.2011 at 09.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2010 – JULY 1, 2011
Vaahto Group’s turnover for September 1, 2010, to May 31, 2011, was 40.4 million euros (compared with 26.2 million euros for the corresponding period in the previous fiscal year), with an operating loss of 0.6 million euros (comparative: operating loss of 5.7 million euros). Turnover grew by 54% from the reference period, and the operating result was better than in the comparative period. The Group’s turnover for the third quarter (March 1 to May 31, 2011) was 15.5 million euros (compared with 8.0 million euros for the corresponding period in 2010), with an operating profit of 0.7 million euros (comparative: operating loss of 2.0 million euros). The Group’s order book on May 31, 2011, totaled 25.4 million euros (May 31, 2010: 13.0 million euros). Vaahto Group’s result is expected to improve significantly from the previous fiscal year’s figure, and the full-year operating profit is expected to be slightly positive.
Pulp & Paper Machinery
The Pulp & Paper Machinery division’s turnover for September 1, 2010 – May 31, 2011, was 28.8 million euros (16.7 million euros), with an operating profit of 0.4 million euros (operating loss of 5.1 million euros). Turnover grew by 72% from the reference period’s level, and the operating result was clearly better.
The market situation for the Pulp & Paper Machinery division has remained good. In the project business, the most significant new orders in the third quarter of the fiscal period (March 1 to May 31, 2011) were the pulp dryer rebuild for Stora Enso’s pulp mill in Imatra and the modernization of the press section of the board machine for Stora Enso’s Inkeroinen mill. Furthermore, in June, after the third quarter ended, the division received an order for modernization of headboxes in a board machine from Henan Xinhai in China.
The market situation for the Service business improved in the course of the spring, and the outlook for the final quarter of the fiscal period is good.
Process Machinery
The Process Machinery division’s turnover for September 1, 2010 – May 31, 2011, was 11.6 million euros (9.6 million euros), with an operating loss of 1.0 million euros (operating loss of 0.6 million euros). The turnover increased by 21% from that of the reference period, but the result was still lower than the comparative figure. The result was affected by the poor profitability of the vessel business.
For the most part, the market situation for the division’s vessel business remained weak during the period under review. The number of projects in the offer phase is moderate, but few projects have entered the decision stage and the price level has been weak. The order book of the vessel business turned to a slight increase at the end of the period, and the prospects for the last quarter of the fiscal year have improved.
The development of the Process Machinery division’s agitator business has been in line with targets during the review period, and the market situation is expected to remain strong.
Vaahto Group implemented a reorganization of its process machinery business on June 1, 2011, and combined the agitator businesses of the Group into the Mixing Technology –business unit. The goal is to utilize synergy effects, streamline processes, and strengthen the market position. The companies responsible for the Group’s agitator business are Japrotek Oy Ab, from Finland, Stelzer Rührtechnik International GmbH, from Germany.
Outlook for the September 1, 2010 – August 31, 2011, fiscal year
In the period under review, Vaahto Group’s order book has grown significantly, enabling profitable business operations. Recognition of projects in the order backlog will be weighted toward the latter half of the fiscal year. Vaahto Group’s result is expected to improve significantly from the previous fiscal year’s figure, and the full-year operating profit is expected to be slightly positive.
In Lahti, on July 1, 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