Home / Knowledge / News / Textiles / Streamlining efforts will continue - Ahlstrom
Streamlining efforts will continue - Ahlstrom
27
Oct '09
Ahlstrom announces interim report for January-September 2009.

Jan Lång, President & CEO, comments:
- Despite the challenging market environment, we reached a positive EBIT for July-September, particularly owing to streamlining efforts, cost control and lower raw material prices. Employees have committed themselves excellently to our target of shifting the focus towards cash flow and working capital reduction. Our net debt decreased by over EUR 87 million since the turn of the year. Still, our profitability is not satisfactory, so the streamlining efforts will continue. Due to risen raw material prices, we have also announced price increases.
- We have today published our new strategic direction. In the future, our business will be based on two very distinct business models: the value-added business and the operational excellence business. The focus is on profitable growth, with the return on capital employed (ROCE) as the most important indicator. Its target level of 13% remains unchanged.

OPERATING ENVIRONMENT
The very challenging market conditions resulting from the recession continued until the end of the first half of 2009, when the weakening of demand for Ahlstrom's products stopped and the demand for some products began to pick up.The positive trend continued during July-September, but demand did not increase to the level of the corresponding period last year.

In the Fiber Composites segment, the recession has not impacted the demand for Ahlstrom's food packaging and teabag materials or nonwovens in medical applications. In January-September, their demand remained close to the usual level. The demand for Ahlstrom's construction materials increased slightly in July-September compared to the first half of the year. Also the demand for wipes and transportation filtration media improved after the weak January-June. In addition, preparations for the possible spread of the A(H1N1) virus that causes swine flu had a slightly increasing impact on the demand for face masks and wipes. On the other hand, windmill and marine markets continued to be weak.

In the Specialty Papers segment, the market demand in release and label papers, which picked up during the second quarter, continued to increase and approached the level of the third quarter of 2008. The demand for wall covers and posters as well as industrial papers also increased. On the other hand, the automotive, furniture and textile markets continued to be weak.

The increase in the market prices of Ahlstrom's main raw materials, natural and synthetic fibers and chemicals, which began in June, mainly continued.

DEVELOPMENT OF NET SALES
Development of net sales in July-September 2009
Net sales decreased in all of Ahlstrom's business areas compared to the third quarter of 2008. Compared to April-June 2009,net sales remained unchanged. Net sales for July-September amounted to EUR 400.6 million (EUR 451.2 million), reducing by 11.2% compared to July-September 2008.


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

CAIT urges Indian PM for separate internal trade ministry

Textiles | On 21st Apr 2018

CAIT urges Indian PM for separate internal trade ministry

The Confederation of All India Traders (CAIT) has written to Prime...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search