Vaahto Group reported turnover of Euro 48.3 million

Oct 16, 2012. /Lesprom Network/. Vaahto Group’s turnover for 1 September 2011 – 31 August 2012 was Euro 48.3 million (compared with Euro 55.3 million for the corresponding period in the previous financial year), with an operating loss of Euro 4.8 million (compared with an operating loss of Euro 1.3 million). Turnover fell by 13% from the reference period level, causing the operating result to remain weaker than in the reference period. The Group’s order book grew by 15% during the period under review and amounted to Euro 25.7 million on 31 August 2012, as Vaahto Group said in the press release received by Lesprom Network. On 19 June 2012, Vaahto Group Plc Oyj’s extraordinary general meeting approved an amendment to the statutes, based on which the company’s normal financial year was changed to 1 January–31 December. Consequently, the duration of the current financial year will be 16 months (1 September 2011–31 December 2012). During the period under review, the turnover of Vaahto Paper Technology was Euro 29 million and the operating loss Euro 4.4 million. The turnover fell significantly 27% from the reference period, and combined with the weak profitability of the project business, it caused the result to remain clearly weaker than that of the reference period. In the period under review, the most significant new order in the project business was the modernisation of the pulp dryer at the Södra Cell Mönsterås pulp mill. There have been clear signs that the market situation of the project business is intensifying. The market situation of the service business has continued to be fairly good for the time being. In the period under review, the organisation and business structure of the Vaahto Paper Technology division was clarified. Measures were taken to strengthen the sales and product development operations in particular, while cost-effectiveness was improved by combining overlapping operations. As part of the strategy work at Vaahto Group, the possibilities for clarification of the structure and organisation of the project business unit, as well as potential options for business acquisitions or sales, are being analysed. The company has made a strategic decision to focus on the service business in the Vaahto Paper Technology division, where possibilities for utilising Vaahto’s paper technology expertise have made themselves evident. A new intensification programme has been started in the service business, the effects of which are expected to be seen in the final months of the extended financial year. The turnover of the Vaahto Process Technology division for the period under review was Euro 19.4 million, and its operating loss was Euro 0.5 million. The turnover increased by 24% compared to the reference period. The operating result improved but still remained negative. The result was impacted by the low profitability of the vessel business during the first six months of the financial year. In terms of pricing, the market situation remained difficult for the division’s vessel business, but the number of confirmed orders and of projects in the tender stage is rapidly growing. In August 2012, Japrotek Oy Ab received a substantial order from Sasol Technology (Pty) Limited in South Africa for the design, fabrication and site-assembly of eight large tank structures. Vaahto Process Technology’s market situation in the agitator business has remained good, and the size of the order book is unchanged. Profitability objectives for the agitator business have almost been met in the period under review. The agitator business is considered part of the Group’s strategic area of focus. During the period under review, the Group’s research and development activities have focused on expanding the product range of the Vaahto Paper Technology division’s service business. The scope of research and development activities remains at the level seen in the previous financial year. During the fiscal period 2011-2012 the Group has booked total Euro 1.4 million impairment losses related to deferred tax assets recognized for tax losses. Vaahto Group enhances production processes in the paper, board, pulp, and process industries by developing and manufacturing equipment and services that boost production and improve the products’ quality and competitiveness.