Tamfelt returns on net assets 20.4%

26 Sep '07

3 min read

Tamfelt Corp released the interim report for January-June 2007. In spite of the positive market situation, the demand for paper machine clothing did not grow, except in China and the rest of Asia.

Tamfelt's delivery volumes increased, although the total demand for clothing decreased. The demand for filter fabrics delivered to the mining and chemical industries was at the same level as in the corresponding period in 2006.

The market situation of filter fabrics for the paper and pulp industries during the report period was good and the demand was on a higher level than in the first half of 2006.

Average prices of paper machine clothing in January-June 2007 were lower than the year before, and competition in the field was tougher due to cost savings programs of customer companies.

The net sales of Tamfelt Group in January-June 2007 were 85.0 million euros (79.3 in 1-6/2006). This is 7.2% higher than in the same period in 2006. Delivery volumes increased more than the net sales.

The Group's operating profit 11.7 million euros (11.7) was 13.7% (14.8) of net sales. The net profit for the period was 8.7 million euros (8.6). Return on net assets was 20.4% (21.6) and return on equity was 16.8% (17.5).

Increasing productivity and sales volumes compensated for the effect of lower prices to the results. Increasing market shares have been made possible by successful long-term R&D, and customer-focused approach.

Productivity has been improved through timely investments and by developing processes and work procedures. Even stronger concentration on chosen strategic segments has also contributed to improved profitability.

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