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Ahlstrom Corporation plans to cut jobs
30 Apr '09
5 min read
Net sales of the Fiber Composites segment amounted to EUR 208.8 million (EUR 252.0 million), representing 55% of the Group net sales. Net sales decreased by 17.1% from the first quarter in 2008. Net sales were reduced in most business areas due to lower volumes in most products. On the other hand, net sales grew slightly in the Advanced Nonwovens business area.
Net sales of the Specialty Papers segment amounted to EUR 170.1 million (EUR 217.0 million), accounting for 45% of the Group net sales. Net sales were reduced by 21.6% from the first quarter of 2008. Net sales were reduced in both business areas, the Release & Label Papers and Technical Papers.
In terms of geographical areas, net sales declined in all areas except for North America compared to the first quarter of 2008. The slight growth in North America was mainly due to the West Carrollton acquisition in the USA that was included in the company figures starting from February 2008. In accordance with our ambitions, the relative share of Europe continued to decrease, being 53% (61%) of the Group net sales.
Financial result
In the first quarter, Group EBIT amounted to EUR -10.7 million (EUR 19.3 million). EBIT was, nevertheless, better than that of the final quarter of 2008 (EUR -35.4 million and EUR -13.7 million excluding non-recurring items).
The Group financial performance was burdened by low net sales. In addition, the performance was somewhat affected by the general price pressures in the current market environment.
EBIT of the Fiber Composites segment amounted to EUR -2.5 million (EUR 15.5 million). Most of the weak performance reflects the exceptionally low level of net sales in the Glass and Industrial Nonwovens business area and the Home & Personal Nonwovens business area.
EBIT of the Specialty Papers segment amounted to EUR -3.4 million (EUR 5.5 million). The main reason for the weak performance was low demand in both business areas, the Release & Label Papers as well as in the Technical Papers.
At the beginning of 2009, Ahlstrom announced global restructuring plans to respond to the decrease in demand. Several measures were decided to be taken to improve profitability, and to adjust operations to the challenging market situation.
These included permanent layoffs of approximately 200 people, temporary layoffs at production sites as well as in the headquarters, cutting down production globally by market related downtime procedures and closing down non-competitive operations in Italy. One third of the announced permanent layoffs were implemented in the review period.
Ahlstrom took an active approach in adjusting its daily production to the weak demand. The utilization of downtime in production taken due to market reasons was 24.5% compared to 7.7% in the first quarter of 2008. Temporary layoffs were an essential part of these adjustments. Ahlstrom actively pursued various flexible working hour solutions in different countries, for example the Kurzarbeit program in Germany.
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Net sales of the Specialty Papers segment amounted to EUR 170.1 million (EUR 217.0 million), accounting for 45% of the Group net sales. Net sales were reduced by 21.6% from the first quarter of 2008. Net sales were reduced in both business areas, the Release & Label Papers and Technical Papers.
In terms of geographical areas, net sales declined in all areas except for North America compared to the first quarter of 2008. The slight growth in North America was mainly due to the West Carrollton acquisition in the USA that was included in the company figures starting from February 2008. In accordance with our ambitions, the relative share of Europe continued to decrease, being 53% (61%) of the Group net sales.
Financial result
In the first quarter, Group EBIT amounted to EUR -10.7 million (EUR 19.3 million). EBIT was, nevertheless, better than that of the final quarter of 2008 (EUR -35.4 million and EUR -13.7 million excluding non-recurring items).
The Group financial performance was burdened by low net sales. In addition, the performance was somewhat affected by the general price pressures in the current market environment.
EBIT of the Fiber Composites segment amounted to EUR -2.5 million (EUR 15.5 million). Most of the weak performance reflects the exceptionally low level of net sales in the Glass and Industrial Nonwovens business area and the Home & Personal Nonwovens business area.
EBIT of the Specialty Papers segment amounted to EUR -3.4 million (EUR 5.5 million). The main reason for the weak performance was low demand in both business areas, the Release & Label Papers as well as in the Technical Papers.
At the beginning of 2009, Ahlstrom announced global restructuring plans to respond to the decrease in demand. Several measures were decided to be taken to improve profitability, and to adjust operations to the challenging market situation.
These included permanent layoffs of approximately 200 people, temporary layoffs at production sites as well as in the headquarters, cutting down production globally by market related downtime procedures and closing down non-competitive operations in Italy. One third of the announced permanent layoffs were implemented in the review period.
Ahlstrom took an active approach in adjusting its daily production to the weak demand. The utilization of downtime in production taken due to market reasons was 24.5% compared to 7.7% in the first quarter of 2008. Temporary layoffs were an essential part of these adjustments. Ahlstrom actively pursued various flexible working hour solutions in different countries, for example the Kurzarbeit program in Germany.
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Ahlstrom Corporation
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