Improved profitability and strong cash flow despite lower net sales
The year was characterized by customer cautiousness and uncertainty.
Demand remained sluggish throughout the year. At EUR 2,038 million (EUR
2,260 million in 2008), the Group net sales declined due to lower
volumes, divestments and discontinued operations. In addition, currency
translations had a minor adverse effect on the euro-denominated value
of net sales. Despite the decline in net sales, profitability improved
markedly. The full year Group EBIT, excluding non-recurring charges,
was higher than the previous year. Most of the business segments were
able to maintain sound margins, and successful cost reductions added to
earnings growth. These positive factors more than compensated for the
decrease in volumes which was experienced in most business segments.
Cash flow generation was strong throughout 2009, supported by improved
working capital efficiency and low capital expenditure. All segments
achieved good results in cash generation. This contributed to a
considerable reduction of net debt, which advanced the accomplishment
of the Group’s key financial targets. As of January 1, 2010, the
Flexibles Global segment was renamed Flexible Packaging, the Films
Global segment was renamed Films and the Rough Molded Fiber Global
segment was renamed Molded Fiber.
