Profitability shows signs of improvement - Seite 2

Operating environment

The operating environment in Ahlstrom's main markets in the first quarter of 2014 improved slightly from the comparison period. The North American economy continued to grow and some positive signs were also seen in Europe. Development varied in Asia with growth slowing in China. The economy in South America continued to be soft.

In the Advanced Filtration business area, steady growth continued in the laboratory and life science filtration markets in Europe and Asia, whereas the development was somewhat softer in North America. Demand for water, gas turbine and high efficiency air applications grew as well.

In the Building and Energy business area, demand for construction related materials was stable in Europe, but softened in Russia. The market for reinforced glass fiber products for the wind energy industry in Europe was steady at a low level, whereas it started to recover in North America supported by tax incentives. Demand for wallpaper and wallcovering substrates in Europe and China softened during the period.

In the Food business area, demand for beverage, food packaging and tape products continued to be solid in all main geographical regions except for South America. Growth continued in the single-use coffee products market.     

In the Medical business area, demand for medical fabrics was stable in Europe and North America, while it strengthened in Asia, supported by the growing trend for single-use products.

In the Transportation Filtration business area, solid growth continued in the transportation filtration materials markets in Asia, North America and Europe. In South America, the market started to show some positive signs following a slowdown in the second half of 2013.

Discontinued operations

The operative result of the Brazilian operation of the former Home and Personal business area was included in discontinued operations until February 10, 2014, when its sale to Suominen Corporation was completed. The comparison figures include the operative results from the Label and Processing business as well as the Brazilian operations of the former Home and Personal business area. All operative figures exclude depreciation.

Result from discontinued operations

In January-March 2014, the loss from discontinued operations for the period was EUR 1.2 million (EUR 6.0 million profit). The figure includes a reversal of EUR 2.2 million net of tax of an impairment loss and transaction costs to divest the Brazilian operations of the former Home and Personal business area.  In addition, it includes a deferred tax cost in Germany.