Managing Director's Review 2008

The Net sales and the net profit of Nordic Aluminium dropped comparing to the fiscal year 2007.

Net sales were 6.7 per cent lower than 2007 being EUR 100.15 million.
Due to rapid recession in market demand turnover dropped 25 per cent during the fourth quarter.

Net profit was EUR 8.27 million (EUR 14.81 million including EUR 3.6 million non-recurring gain.). The Company made a devaluation in inventories of EUR 1.6 million based on the rapid and abrupt price decrease in aluminium world market price.

Gross investments in 2008 were EUR 9.64 million. The investment program which started in the beginning of 2007 will be finalized during the first half of 2009. The new extrusion line will start production during March 2009. The line is expected to increase productivity and improve quality.

Due to the problems in the global economy the market outlook is still poor and uncertain. Customers are operating on a very short notice and it is impossible to get reliable demand estimates. Production volume, net sales and profitability are expected to be clearly weaker that in 2008. The Company is aware of the difficult current situation where the economic recession is expected to deepen. The situation is closely followed and the Company will take measures to maintain its competitiveness.

Kirkkonummi, March 2009,
Robert Paajanen, Managing Director and CEO