Ahlstrom Corp. lowered its full-year earnings forecast for the second time in a month, and announced it has started production cutbacks. The company is based in Finland and operates a major plant in Windsor Locks as part of its Fiber Composites division.
Paul Marold, the Windsor Locks plant’s vice president and general manager, said there are no job cuts planned at this point.
“We’re trying to use the smartest shift scheduling we can,” Marold said. In addition, the Windsor Locks plant has reduced overtime, but has avoided layoffs, he said.
And Marold said he is hoping that the production of tea bags and other products used as containers for “comfort foods” will help keep production on track.
Lower Profits
In the company statement, Ahlstrom President and Chief Executive Officer Risto Anttonen said he now expects that 2008 profits will be lower than those in 2007, and said the company “has taken actions to adjust its production to the lower demand.” Anttonen did not elaborate on where or how the adjustments are being made.
Ahlstrom has revised its full-year outlook for 2008 “due to the weakening demand for some of its products,” Anttonen said. Operating profit excluding non-recurring items is expected to be clearly lower than in 2007, which was $92.4 million in U.S. currency.
“Ahlstrom earlier estimated its full-year operating profit to be almost at the level of last year,” he said.” The estimate was based on a weaker demand, especially in the U.S., in products including wipes and products for the building, automotive, and marine industries, Anttonen said.
“It has now become evident that the demand is weakening in these product segments also outside the U.S.A.,” he said.
The demand for Ahlstrom’s other products has still been growing, he said, “and the company anticipates its full-year net sales to increase from that of 2007.”
Ahlstrom will file its third quarter financial report on Oct. 28. Just a month ago, Ahlstrom revised downard its financial forecast for 2008.
