Ahlstrom updates 2012 outlook following the EGM approval to demerge the Label and Processing business
Ahlstrom Corporation STOCK EXCHANGE RELEASE November 27, 2012 at 14.50
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Ahlstrom, a global high performance fiber-based materials company, updates its 2012 outlook for net sales and operating profit excluding non-recurring items after the Extraordinary General Meeting of the company approved the demerger of the Label and Processing business area.
Ahlstrom's Extraordinary General Meeting of the Shareholders today resolved to approve the demergers of the Label and Processing business in Europe and the Coated Specialties business in Brazil according to the respective demerger plans. Consequently, the Label and Processing business area will be classified as an asset held for distribution to owners and reported separately as discontinued operations in the Financial Statements Bulletin 2012.
Ahlstrom's view of the market environment remains unchanged. However, the outlook is only adjusted to reflect the resolution by the EGM to approve the demerger of the Label and Processing business area.
Ahlstrom now expects net sales from continuing operations to be EUR 960 -1,040 million and operating profit excluding non-recurring items from continuing operations to be EUR 22 - 32 million in 2012. Ahlstrom had previously estimated, including the Label and Processing business area, net sales to be EUR 1,550 - 1,630 million and operating profit excluding non-recurring items to be EUR 48 - 58 million.
The cost structure of the continuing operations has been adjusted with the costs historically allocated to the discontinued businesses to the extent such costs will remain with Ahlstrom after the demergers.
Earlier this month, Ahlstrom announced that the company intends to rightsize its cost base to reflect the future size and scope of the company following the closing of the Label and Processing transaction. The company aims to achieve a total of EUR 15 million in cost savings within one year after the closing of the transaction.
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Ahlstrom in brief
Ahlstrom is a high performance fiber-based materials company, partnering with leading businesses around the world to help them stay ahead. Our products are used in a large variety of everyday applications, such as filters, medical gowns and drapes, wallcoverings, flooring and food packaging. We have a leading market position in the businesses in which we operate. Our 5,200 employees serve customers in 28 countries on six continents. In 2011, Ahlstrom's pro forma net sales amounted to EUR 1 billion. The company's share is quoted on the NASDAQ OMX Helsinki. More information is available at www.ahlstrom.com.