Finnish packaging group Huhtamaki (Espoo; www.huhtamaki.com) has reported an operating profit (EBIT) of EUR 119m in 2009 (including non-recurring charges of EUR 13.9m), compared with a loss of EUR 74.5m in 2008 (including non-recurring charges of EUR 165m for asset and goodwill impairment and restructuring – see Plasteurope.com of 27.02.2009). Sales fell by 10% year-on-year to EUR 2.04 bn in 2009.

Huhtamaki CEO Jukka Moisio said the company had “a financially strong year even if sales volumes declined due to soft market sentiment and demand. Our performance in profitability was good with a clear improvement in earnings from the previous year. We reduced our net debt by a third and achieved a significant improvement in return on investment.”

The flexibles global segment reported operating profit of EUR 28.4m in 2009, compared with a loss of EUR 1.0m in 2008. Sales fell by 7% to EUR 464m. Despite lower sales, Huhtamaki said the segment’s earnings growth increased toward the end of 2009, reflecting cost containment, improved operational control and the elimination of losses at the company’s Malvern, Pennsylvania / USA plant, which was closed at the end of Q1 2009.

An operating loss of EUR 2.7m was reported for the films global segment, compared with a profit of EUR 7.9m in 2008. Sales in the segment fell to EUR 154m from EUR 201m in 2008. The company said that demand in the segment was low throughout the year, particularly in industrial applications. Volume shortfalls were compounded by price reductions on some products. There were signs of some recovery in orders towards the end of the year, it added.

The foodservice Europe-Asia-Oceania segment reported an operating profit of EUR 16.3m compared with an operating loss of EUR 1.6m in 2008. Sales fell by 8% to EUR 450m. Volumes decreased in the segment and Huhtamaki said that most European markets were soft, while Oceania showed moderate, but steady growth. Earnings increases were supported by growth in Oceania and improved operational control in Asia.

Operating profit in the rigid consumer goods plastics segment was EUR 9.6m in 2009, a turnaround from a EUR 123m loss in 2008. Sales in the segment fell to EUR 282m from EUR 390m in 2008. The fall in sales was due to divestments, adverse currency translations and lower volumes, the company said. While sales increased in eastern Europe and in Australia, they declined elsewhere. In November 2009, Huhtamaki sold its Australian rigid plastic consumer goods business to Alto Manufacturing (Auckland / New Zealand; www.altoplastics.co.nz), a subsidiary of holding company Pact Group (South Yarra, Victoria / Australia), for EUR 33m – see Plasteurope.com of 18.11.2009.

Operating profit in the North America segment increased by 66% year-on-year to EUR 55.5m in 2009 on sales down 3% at EUR 529m.

Huhtamaki said that general economic and market conditions in 2010 remain uncertain but that it is in a good financial position to address growth opportunities when they arise. Capital expenditure is expected to be higher than in 2009 but below EUR 100m.

The flexibles global segment accounted for 22% of sales in 2009 (21% in 2008), films global 7% (9%), North America 25% (23%), foodservice Europe-Asia-Oceania 22% (21%), rigid consumer goods plastics 14% (17%) and rough moulded fibre global 10% (9%).

e-Service: Huhtamaki 2009 results as a PDF document (120 KB)