Vaahto Group Interim Management Statement fot September 1, 2007 – June 27, 2008
VAAHTO GROUP PLC OYJ INTERIM MANAGEMENT STATEMENT 27.6.2008 at 10.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT FOR SEPTEMBER 1, 2007 – JUNE 27, 2008
In the period under review, Vaahto Group’s turnover and result developed as expected. The Group’s turnover for September 1, 2007 – May 31, 2008, was 60.3 million euros (59.6 million euros for the corresponding period in the previous fiscal year), with an operating profit of 0.6 million euros (comparative: 1.8 million euros). In spite of the slightly increased turnover, the Group’s result was lower than the equivalent figure for the reference period. The main reason for decreased profits was the poor profitability of the Pulp & Paper Machinery division’s project deliveries completed during the period under review. The order backlog on May 31, 2008, was 24.8 million euros, which is lower than the 33.5 million euros presented in the interim report released on February 29, 2008.
Pulp & Paper Machinery
The Pulp & Paper Machinery division’s turnover for September 1, 2007 – May 31, 2008, was 33.7 million euros, compared to 38.2 million euros for the corresponding period of the previous fiscal year. The division’s result was lower than in the reference period and became negative. The result was undermined by the poor profitability of project deliveries completed during the period and the low turnover experienced at the end of the period.
The market situation for the Pulp & Paper Machinery division remained challenging, and the order backlog decreased during the period. However, the division is processing a significant number of projects in the offer phase.
The Process Machinery division’s turnover for September 1, 2007 – May 31, 2008, came to 26.6 million euros (21.4 million euros for the corresponding period in the previous fiscal year). The turnover was 24 percent higher than that of the reference period, increasing in both the tank and agitator fields; both product groups’ profitability was better than that seen in the reference period.
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. Vaahto Oy is expected to recognize some profit for the sale in the fourth quarter of the fiscal year.
The Process Machinery division’s market situation has remained fair, and the order backlog is good for both tanks 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 the turnover for the fiscal year is expected to show a decrease from the previous year’s level. This poses clear challenges for profitability development in the fourth quarter of the fiscal year.
The information is unaudited.
Lahti, June 27, 2008
VAAHTO GROUP PLC OYJ
Board of Directors
CEO, Vaahto Group Plc Oyj
Tel.: +358 40 823 2835