Ahlstrom reported Q4 net sales of €255 million ($278.2 million), showing an increase of 3.2%. Comparable net sales at constant currencies declined by 2.4%. Operating profit was €-16.4 million ($-17.9 million). Operating profit excluding non-recurring items was €7.6 million ($8.3 million), representing 3% of net sales, and the ninth consecutive quarter of year-on-year improvement.

In the full year 2015, net sales of €1.07 billion ($1.17 billion), showed an increase of 7.4%. Comparable net sales at constant currencies declined by 0.7%. Operating profit was €21.9 million ($23.9 million). Operating profit excluding non-recurring items was €47.5 million ($51.8 million), representing 4.4% of net sales.

Marco Levi, president and CEO, comments: “Improving profitability was the major theme of our performance in 2015, and this was also reflected in the last quarter of the year, as we clearly delivered according to our plans. We have achieved this through continued optimization of the existing product portfolio, enhanced pricing, as well cost savings. In addition, we have increased the capacity utilization of the new assets including the Binzhou wallcoverings production line and the Longkou plant. The slowdown in some of our key markets that started in the middle of last year persisted until the end of the reporting period, and had a clear negative impact on net sales.

“The slowdown was most visible in the Filtration business area, and particularly in engine filtration. The Food and Medical business area was also impacted by this to some extent, but as a whole it consistently improved during the year. The Building and Energy business area continued to make very good progress in terms of sales growth and profitability improvement. I’m also pleased with the accelerated pace of the ramp-up of our wallcoverings production line in China.”

Ahlstrom completed a comprehensive strategy review and has now redefined its strategy extending to the year 2018.

As part of the implementation, the company’s business structure was simplified as of the beginning of this year and reorganized into two business areas: Filtration & Performance and Specialties. The aim of this change is to increase market and customer focus. Both segments have business unit specific strategies and operating models. This enables Ahlstrom to provide customer-driven product development and tailored customer service, cost efficiency, better allocation of resources, and specific go-to-market approaches.

“We believe that with our strategy we can achieve our vision,” Levi says. “However, for us to be the best possible partner for our customers, we need to make a shift in the execution.”

The roadmap for execution outlines the change in strategy and is focused on commercial excellence, a new lean operating model, organic growth via higher asset turnover and growth via new platforms.

As part of the redefined strategy, the Board of Directors has approved Ahlstrom’s new long-term financial targets over the economic cycle:
• Operating profit margin: Adjusted operating profit margin to be above 8% by 2018
• Gearing: Gearing to be maintained below 100%
• Dividend policy: Ahlstrom aims for a stable dividend, increasing over time, based on the annual net income performance

The adjusted operating profit margin excludes restructuring costs, impairment charges, capital gains or losses, and discontinued operations.