CEO's review

President and CEO Pekka Lundmark comments:

“After the first three quarters of 2011 with only mediocre result development, we were able to significantly improve our result during the fourth quarter. Strong delivery volumes generated an operating profit of EUR 47.5 million before restructuring costs, clearly the highest in 2011. As preliminarily communicated in connection with the Q3 report, we also announced certain restructuring measures during the fourth quarter, which resulted in one-time charges of EUR 10.3 million in the quarter. Full-year 2011 operating profit before restructuring costs was marginally higher than in 2010. All in all, we are satisfied with our top-line growth and market share in 2011, but not with the profit.

We have successfully increased our prices to compensate for the increased costs. However, the competitive situation remains tough in the most parts of the world. We are also actively reducing our fixed cost in places where growth opportunities are limited, Western Europe being the most apparent one.

We started the year 2012 with an order book that was 31.2 percent higher than a year ago. That gives us good visibility for the first half of the year. Right now, the level of new inquires is also reasonably good, but it is very hard to forecast the second half of 2012. It is important for us that the ability of our customers to obtain financing is not hurt by the consequences of the public debt crisis in the Western world. We forecast that both our sales and operating profit in 2012 will increase from 2011.”

Financial Statements Bulletin 2011 | February 2, 2012