Managing Director's Review 2009
The year 2009 was exceptionally challenging for the industry and Nordic Aluminum. Net sales decreased approximately 38 per cent from the previous year, reaching EUR 62.24 million. Profitability, however, was improved by operational efficiency measures as well as cost-savings.
When demand fell Nordic Aluminum executed significant restructuring measures concerning the organization, covering all personnel groups. The restructuring measures support the new strategy. In the future, the company will focus more closely on its core business, the electro-technical products, as well as highly refined aluminum component manufacturing. Also initiated efficiency measures and their decisive implementation are essential factors to strengthen the Company's competitiveness and improving its profitability.
Exports and foreign operations increased to 45.2 per cent, the year 2008 was 40.7 per cent.
Investments in 2009 were EUR 6.84 million, of which approximately 5.1 million directed to the new extrusion line, which total value is approximately EUR 9.8 million. The line has as planned, began to increase productivity and improved quality during second half of the year.
The market outlook is still weak and uncertain, although according to the best view, the worst has already passed. Customers will continue to work cautiously and with short term visibility.
Net sales are expected to grow moderately from the 2009 level, but based on the new strategy and business model, operating profit is expected to increase substantially.
Kirkkonummi, March 2010,
Peter Högel, Managing Director
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