Suominen books non-recurring & impairment charges of EUR 4 mn in Q4
05 Jan '09
1 min read
Suominen Corporation books non-recurring and impairment charges of EUR 4 million in the fourth quarter of 2008. The underlying operating profit excluding one-offs is expected to be below that of previous year.
In the Q3 Interim Report, Suominen expected that the underlying operating profit will be on the level of the previous year at the best and the whole year result was expected to be negative.
Non-cash impairment charges of EUR 2.5 million are related to write-down of the book values of goodwill and tangible assets in the Nonwovens business unit. Impairment test calculations have been made to cash-generating units. Due to uncertain general economic situation, assumed risk in the calculations is higher than earlier.
Non-recurring costs are booked mainly due to headcount reductions in the Wet Wipes business unit.
Local employee negotiations have been started in the unit aiming at reducing full time employees by 40 persons to improve the unit's competitiveness. Production will be allocated to more profitable products and customers, and productivity will be improved by new automation line.
The impact of improvement in margins and cost savings is expected to be close to EUR 2 million on an annual basis.
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