Ahlstrom reports profitability up.

Finnish roll goods producer Ahlstrom recently reported positive annual financial results. In 2005, the company's operating profit amounted to 117.2 million [euro] compared to 62.1 million [euro] in 2004. Excluding non-recurring gains totaling 18.2 million [euro], 2005 operating profit was 99 million [euro] compared to 82.1 million [euro] in 2004. Return on capital employed (ROCE) was 12.4% in 2005. Basic earnings per share (EPS) amounted to 1.7 [euro] compared to 0.9 [euro] in 2004. Ahlstrom's net sales were 1.5 billion [euro] in 2005 compared to 1.6 billion [euro] in the prior year.

In the October-December 2005 period, net sales--excluding the divested cores and board business--grew by 5.2%, while sales volumes remained stable. Profitability improved despite a challenging market situation and Ahlstrom announced organic growth investments at its La Gere, France and Mikkeli, Finland plants, valued at 35 million [euro] in total. Add-on acquisitions in the U.S. and China announced in December are also expected to support Ahlstrom's growth. Net sales of these acquired businesses were approximately 20 million [euro] in total in 2005.

"Our performance improved clearly in 2005," said Jukka Moisio, president and CEO, "although it still remained below our long-term target level for ROCE of 13%. Operating profit grew due to a more competitive cost structure and better manufacturing performance. High energy and raw material prices put pressure on our margins but price increases partially offset these higher costs." Mr. Moisio added that three add-on acquisitions in the FiberComposites segment were announced at the end of 2005 and early 2006. "Growth actions, combined with improving profitability, position Ahlstrom well to serve its customers in 2006 and beyond," he said.