Dynea Results 2010: A clear improvement in profitability

Dynea significantly improved results due to growth in demand.

In 2010, the general economic conditions in all of Dynea’s key markets improved, which had a positive impact on demand. Especially in the developing economies of the Asia Pacific region, demand was good and returned to the levels preceding the financial crisis. In Europe, the economic picture remained unstable translating into a slower but steady growth. As a consequence of the prevailing economic uncertainty, construction activity has recovered at a very different pace in the various parts of Europe. Therefore the demand for Dynea’s products in Europe has not yet returned to the normal long-term level.

Dynea’s sales increased to €708.0 million from €526.9 million in 2009. Dynea’s sales prices are linked to raw material prices, which in turn are dependant on commodity prices and general economic conditions. Due to raw material prices increasing steadily during the whole year, sales rose by 34%, while volumes grew by 14%.

In 2010, Dynea’s operating result turned to a €17.0 million profit from a €46.0 million loss a year earlier. The operating profit in 2010 comprises a €1.7 million loss on disposal of a joint venture. The operating result in 2009 includes an impairment write-down amounting to €49.9 million.

As a result of increased sales volumes and higher raw material prices, a substantial amount of working capital was tied up, and net cash provided by operating activities decreased to €15.1 million (€27.6 million in 2009). Net debt, taking into account loans receivable, rose to €162.2 million from €157.2 million in 2009. The equity ratio rose to 30% (29%) and net gearing was 99% (103%).

In 2010, the 50% owned joint venture Dynea Brasil S.A. was sold and the sales company OOO Dynea was established in Russia. In addition, Dynea Nanjing Co., Ltd. was founded in China.

The President and CEO of the Dynea Group, Roger Carlstedt retired from his role on February 28, 2011, and Nina Kopola was appointed as the acting President of the Group as of March 1, 2011. She also continues in her role as President Dynea Europe.

“We expect the market situation in Europe to improve, albeit slowly. In Asia Pacific, the growth is estimated to remain stable. We are excited about our new investment in China and the Nanjing plant is expected to go on-stream during 2011. This will further strengthen our position in this growing market. Altogether we predict an improvement in our results also in 2011,” comments Dynea’s acting President Nina Kopola.

For further information

Nina Kopola, acting President
Executive Vice President, President Dynea Europe  

Tel. + 358 10 585 2018, nina.kopola@dynea.com

Ilpo Koivisto, Executive Vice President & CFO

Tel. + 358 10 585 2017, ilpo.koivisto@dynea.com

Dynea in brief
Dynea is a world-leader leader in creating high value adhesion and surfacing solutions for the wood processing and construction industries as well as for selected industrial applications. In 2010, Dynea’s sales were €708 million. The company has 36 production plants and some 2100 employees in 23 countries in Europe, the Asia Pacific region and Brazil. Dynea is headquartered in Helsinki and controlled by the European private equity firm IK Investment Partners’ 1997 and 2000 funds. For further information, please visit www.dynea.com