In 2005, Huhtamaki’s underlying business result improved in line with expectations, despite volatility in raw material prices and the focus on restructuring. After a slower start, positive business momentum continued throughout the year, mainly driven by strong recovery in North America.

During 2005 Huhtamaki began the implementation of a restructuring program that targets at optimizing the group’s global manufacturing footprint in order to achieve a major improvement in cost efficiency and to build a foundation for future growth. The restructuring program was announced in two phases, at the end of 2004 and mid-year 2005. The first phase was completed on schedule by year-end and the second phase is progressing according to plan. Parallel to the restructuring work, which primarily concerns rigid packaging operations, further capacity expansion was initiated in strategic growth markets.

The underlying result excludes the restructuring and goodwill impairment charges.

During the year the company’s organization was strengthened and change momentum accelerated through a number of key appointments.