Annual Report 1999 - Kemira

KEMIRA
METALKAT
Kemira Metalkat’s favourable trend in
operations continued in 1999 and we
posted the best result in our history. Both
net sales and operating income came in
ahead of budget. Net sales
grew by 19% to EUR 36
million (30 million in
1998). Operating income
was EUR 3.1 million (1.7
million in 1998).
Net sales during the
past year consisted mainly
of deliveries of catalytic
converters to the European
automotive industry.
The long-awaited market
for small combustion engines
got under way and
significant sales volumes
are expected within a
couple of years.
Metalkat’s product range is extensive
and series sizes vary greatly. For this reason,
during the report year we paid particular
attention to costs and the efficiency
of manufacturing and operations.
Customer wishes were a special focus
of product development. Catalytic
converter systems were jointly developed
to meet the requirements of increasingly
tougher emission norms. Several
approvals of catalytic converters for
small combustion engines were obtained
from the authorities.
EUR 1.3 million was spent on capital
projects. The investments were aimed at
improving and ensuring high-calibre operations
and quality in all subareas.
Net sales and earnings in 2000 will
fall because certain car models for which
we are supplying equipment will be removed
from production, and new deliveries
of the same size will not yet start
up during the current year.
The development of the emission-control
systems of the future in close cooperation
with customers is one of Kemira
Metalkat’s key areas. The photograph
shows a Maserati being tested at the
Metalkat engine laboratory.
KEMIRA SAFETY
Kemira Safety’s result was satisfactory.
Net sales were EUR 14.2 million (14.4
million in 1998) and operating income
was EUR 0.9 million (1.3 million in
1998).
Military protective masks accounted
for a smaller share of net sales, 6% as
against 15% a year earlier. By contrast,
net sales generated by respiratory protective
devices for industrial use and
other occupational safety applications
continued their growth in all three product
groups: masks, filters and powered
respiratory protectors.
Thanks to product development and
improvements in product safety, our
sales increased in all the main market areas:
Western Europe, Scandinavia and
Finland. Large outlays on product development
and marketing, coupled with the
fast pace of capital expenditures on new
products and production equipment
nevertheless cut into our earnings in
1999.
We brought out on the market Proflow2,
a new battery-powered motorized
respiratory protector, and a new generation
industrial protective mask – Promask.
Both products won the unreserved
approval of their users and a
good position was established on the
market. All three product groups now
have strong core products: Promask
within protective masks, the Pro2000 series
within filters and the Proflow family
within motorized respiratory protectors.
Capital investments went for raising production
capacity, new products and information
technology.
We will be able to increase our market
share in the current year, too. Net
sales are expected to grow strongly in
the main market area. We achieved an
important foothold in the nuclear power
industry in Great Britain, and we believe
Kemira Safety brought out on the
market a new powered respiratory
protector named Proflow2, as well as
Promask, a new generation industrial
protective mask. These products will
contribute to strengthening the
company’s position as a European
manufacturer of respiratory protective
devices.
that this will strengthen Kemira Safety’s
position as a European manufacturer of
respiratory protective devices. In addition,
we got off to a good start in the
United States and Australia. This further
boosts our growth potential. Earnings
are expected to improve.
KEMIRA OYJ
Kemira Oyj comprises Group management
and administration as well as
certain service functions. Kemira Oyj’s
net sales consist of the sale of electricity
to the Group’s companies in Finland
and to outside companies. Net sales
for 1999 were EUR 27 million (EUR 32
million), of which 52% came from outside
the Group.
The parent company’s paramount
task is the Group’s strategic management.
It sets objectives for the Group
and the subsidiaries, defines operating
principles and contributes to exploiting
the Group’s internal synergies. In
addition to the energy business, the
parent company handles the Group’s
financing and certain other headquarters
service functions.
Kemira Oyj employed 132 (133)
people in the average.
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