Interim report January-September 2005: Ahlstrom's positive financial performance continued

Ahlstrom, a leader in high performance fiber-based materials, reports an improved third-quarter result. Operating profit for July-September amounted to EUR 33.7 million (Q3/2004: EUR 18.6 million), representing an 8.8% margin (4.7%). Excluding the net non-recurring gains totaling EUR 12.3 million, the third quarter operating profit amounted to EUR 21.4 million (EUR 20.8 million). Net sales were EUR 381.9 million (EUR 393.4 million). Return on capital employed (ROCE) amounted to 13.9% (7.8%).

July-September 2005 in brief

Net sales of continuing operations grew by 6.8% and volumes by 7.3% (both adjusted for divestments)

Good profitability in seasonally slower third quarter

Ahlstrom sold Ahlstrom Kauttua Oy in Finland and a hydropower asset in Italy

Two organic growth investments at two plants in the USA were announced

Key figures

EUR million	Q3/ 2005	Q3/ 2004	Q1- Q3/2005	Q1- Q3/2004	2004
Net sales	381.9	393.4	1,169.0	1,196.0	1,567.8
Operating profit	33.7	18.6	92.7	46.5	63.7
Operating profit excl. non-recurring items	21.4	20.8	77.0	63.9	80.4
Profit before taxes	29.2	15.5	81.6	38.4	49.6
Net profit	18.2	10.7	50.5	24.7	34.3
Net cash flow from operations	59.0	61.5	96.1	79.1	128.0
Gearing ratio, %	49.2	67.4	49.2	67.4	61.1
Return on capital employed (ROCE),%	13.9	7.8	12.9	7.1	7.2
Cash earnings per share, EUR	1.62	1.69	2.64	2.17	3.52
Earnings per share, EUR	0.50	0.29	1.39	0.68	0.94

Mr. Jukka Moisio, President & CEO of Ahlstrom Corporation, comments on the third quarter:

"Seasonally slow third quarter was weaker than experienced in many years. North American and Asian markets did improve but Europe remained sluggish. Increases in energy and raw materials prices continued to put pressure on margins. Despite the challenging market situation, Ahlstrom's comparable sales increased. Continuous focus on manufacturing efficiency as well as strict cost control helped our continuing operations to show 14% improvement in operating profit compared with the third quarter of 2004."

For additional information, please contact:

Jukka Moisio, President and CEO, tel. + 358 (0)10 888 4700
Jari Mäntylä, Senior Vice President, Finance, tel. +358 (0)10 888 4768

The full report including tables can be downloaded from the following link:

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