Ahlstrom's restructuring measures in Q4/2007 to improve profitability

Ahlstrom's restructuring measures in Q4/2007 to improve profitability

Ahlstrom Corporation STOCK EXCHANGE RELEASE 03.01.2008
 
Ahlstrom has during the fourth quarter 2007 taken additional restructuring actions in various parts of the organization reducing altogether 250 positions. Combined with the previously announced restructuring measures, a total of four sites and nine manufacturing lines will be closed and consequently 650 positions will be lost. The total non-recurring costs, approximately EUR 45 million, are booked in the fourth quarter result of 2007.
 
The main focus area of the restructuring measures is the European operations of the Specialty Papers segment including the closure of three non-competitive manufacturing lines during the first half of 2008, affecting 450 positions, i.e. the earlier announced plans to close the Ascoli and Chantraine plants and the Turin PM4 release base paper line. In the FiberComposites segment six manufacturing lines are closed and 200 positions reduced.  The non-recurring restructuring costs amount to approximately EUR 45 million of which asset write-offs are EUR 9 million. The restructuring has a positive cash flow due to the release of working capital, and it is targeted to bring profit improvement of EUR 25 million on an annual basis.
 
"The systematic restructuring actions taken enable Ahlstrom to start the year 2008 with a more competitive cost structure and a leaner organization. The recent acquisitions and the ongoing investment projects in Brazil, Russia, India and China (BRIC countries) will make Ahlstrom well-positioned to succeed and grow in 2008 and beyond", comments President & CEO Jukka Moisio.
 
Ahlstrom Corporation
Jukka Moisio, President & CEO
 
For further information, please contact:
 
Jukka Moisio, President & CEO, Ahlstrom Corporation, tel. +358 (0)10 888 4700
Jari Mäntylä, CFO, Ahlstrom Corporation, tel. + 358 (0)10 888 4768

Distribution:
Helsinki Stock Exchange
Main media
www.ahlstrom.com
 
 
Ahlstrom in brief
 
Ahlstrom is a global leader in the development, manufacture and marketing of high performance fiber-based materials. Nonwovens and specialty papers, made by Ahlstrom, are used in a large variety of everyday products, such as filters, wipes, flooring, labels, and tapes. Based upon its unique fiber expertise and innovative approach, the company has a strong market position in several business areas in which it operates. Ahlstrom's 6,500 employees serve customers via sales offices and production facilities in more than 20 countries on six continents. In 2006, Ahlstrom's net sales amounted to EUR 1.6 billion. Ahlstrom's share is listed on the Helsinki Stock Exchange. The company website is www.ahlstrom.com.
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