Financial Statements Bulletin 2005: Ahlstrom's profitability improved clearly in 2005

Ahlstrom, a leader in high performance fiber-based materials, reports an improved operating profit compared with the financial year 2004. In 2005, the operating profit amounted to EUR 117.2 million (EUR 62.1 million). Excluding non-recurring gains totaling EUR 18.2 million, the operating profit of 2005 was EUR 99.0 million (EUR 82.1 million). <br> <br> Return on capital employed (ROCE) was 12.4% (7.0%) in 2005 and excluding the non-recurring gains 10.5% (9.1%). Basic earnings per share (EPS) amounted to EUR 1.71 (0.91). <br> <br> Ahlstrom's net sales were EUR 1,552.6 million in 2005 (EUR 1,567.8 million).

October - December 2005

Net sales, excluding divested cores and board business, grew by 5.2%, while sales volumes remained stable
Profitability improved despite challenging market situation
Ahlstrom announced organic growth investments in La Gère, France and Mikkeli, Finland plants, valued at EUR 35 million in total
Add-on acquisitions in the USA and China announced in December support Ahlstrom's growth. Net sales of these acquired businesses were approximately EUR 20 million in total in 2005.

Key figures

EUR million	2005	2004	Q4/2005	Q4/2004
Net sales	1,552.6	1,567.8	383.6	371.8
Operating profit	117.2	62.1	24.5	15.6
Operating profit excl. non-recurring items	99.0	82.1	22.0	18.1
Profit before taxes	100.7	47.9	19.1	9.6
Profit for the period	62.6	33.4	11.9	8.5
Net cash flow from operations	126.6	128.0	30.4	48.9
Gearing ratio, %	57.7	62.3	57.7	62.3
Return on capital employed (ROCE),%	12.4	7.0	10.1	6.3
Cash earnings per share, EUR	3.48	3.52	0.84	1.34
Basic earnings per share, EUR	1.71	0.91	0.33	0.23

Jukka Moisio, President & CEO, says:

"Our performance improved clearly in 2005 although it still remained below the company long-term target level for return on capital employed (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. Our divestment-adjusted net sales and volumes grew from the 2004 level and new investments were announced during the course of 2005 to support future growth. Furthermore, 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."

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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