Profitability shows signs of improvement

Ahlstrom Corporation STOCK EXCHANGE RELEASE April 29, 2014 at 09:00 a.m.

This is a summary of the January-March 2014 interim report. The complete report with tables is attached to this release and available at www.ahlstrom.com

Ahlstrom interim report January-March 2014

Profitability shows signs of improvement

Continuing operations January-March 2014 compared with January-March 2013

• Net sales EUR 249.2 million (EUR 255.3 million).
• Operating profit EUR 4.4 million (EUR 8.3 million).
• Operating profit excluding non-recurring items EUR 7.2 million (EUR 6.5 million).
• Operating margin excluding non-recurring items 2.9% (2.5%).
• Profit before taxes EUR 5.2 million (EUR 3.6 million).
• Earnings per share EUR 0.05 (EUR 0.03).

January-March 2014 in brief

• Reported net sales fell by 2.4%, while profitability improved. Comparable net sales grew 2.6% at constant currency rates and there was clear improvement in the profitability of three business areas: Advanced Filtration, Food, and Transportation Filtration.
• New products were introduced to accelerate growth and improve sales mix and profit margin. One key product launch was Ahlstrom NatureMold(TM), a new biodegradable molding material for food packaging.

Outlook for 2014

• The outlook published on January 30, 2014 remains unchanged. Net sales are expected to be EUR 930-1,090 million. The operating profit margin excluding non-recurring items is expected to be 2-5% of net sales.

Jan Lång, President & CEO

"I'm pleased that we were able to make good progress and improve our profitability in three business areas. Advanced Filtration achieved excellent profitability, Transportation Filtration posted solid growth in both sales and profits, and Food showed very good comparable growth during the quarter. Overall, our new products are gaining traction."

"Meanwhile, we continued to address the issues in our two underperforming businesses, Building and Energy, and Medical. We still have work ahead of us in these two businesses, but I'm confident that we are able to enhance competitiveness with ongoing initiatives."  

"Our rightsizing program, aimed at reducing costs by EUR 50 million annually is progressing as planned. We are well placed to improve our profitability this year and beyond through the rightsizing and growth initiatives."

Key figures from continuing operations

EUR million	Q1/2014	Q1/2013	Change, %	2013
Net sales	249.2	255.3	-2.4	1,014.8
Operating profit	4.4	8.3	-47.2	10.7
% of net sales	1.8	3.3		1.1
Operating profit excl. NRI	7.2	6.5	11.6	13.4
% of net sales	2.9	2.5		1.3
Profit / Loss before taxes	5.2	3.6	44.0	-15.4
Profit / Loss for the period	3.1	1.9	60.9	-18.9
Earnings per share	0.05	0.03	71.0	-0.46
Return on capital employed, %	3.4	5.1		0.9
Net cash flow from operative activities *	-6.1	-21.4	71.6	41.0
Capital expenditure	9.0	11.5	-22.0	76.1
Number of personnel, at the end of period	3,502	3,821	-8.3	3,536

*Including discontinued operations