AHLSTROM CORPORATION: FINANCIAL STATEMENTS BULLETIN 2003: STRONG CASH FLOW DESPITE WEAKER PROFITABILITY

Comparable figures refer to the same period last year unless otherwise stated

Ahlstrom, a leader in high performance fiber-based materials, reports full-year earnings significantly lower than last year. Operating profit for 2003 was EUR 48.5 million (EUR 92.4 million). Profit before extraordinary items and taxes was EUR 33.7 million (EUR 67.9 million). Net sales amounted to EUR 1,556.4 million (EUR 1,778.0 million). Earnings per share were EUR 0.61 (EUR 1.42). Excluding non-recurring items of EUR -16.9 million, the operating profit for 2003 was EUR 65.4 million and earnings per share EUR 0.91.

2003 in brief

Profitability weakened due to soft markets, non-recurring items related to restructuring measures and strengthening of the euro
Strong cash flow as a result of working capital reduction and focused investments
The largest division, FiberComposites maintained its returns despite a challenging business environment

Key figures

EUR million	2003	2002	Q4/2003	Q4/2002
Net sales	1,556.4	1,778.0	365.9	405.3
Operating profit / loss	48.5	92.4	-11.0	21.8
Profit / loss before extraordinary items and taxes	33.7	67.9	-14.5	18.8
Net profit / loss	22.4	55.2	-4.6	23.8
Net cash flow from operations	202.0	184.0	56.7	45.7
Gearing ratio (%)	42.3	55.2	42.3	55.2
Return on capital employed (ROCE) (%)	4.6	7.5	-4.4	7.9
Earnings per share (Euro)	0.61	1.42	-0.14	0.53

Juha Rantanen, President & CEO, says:

"Although last year ended up being disappointing in terms of profitability, there are two things to be pleased with, namely a strong cash flow and the stable performance of both the FiberComposites and the LabelPack divisions. Within the Specialties division, we have initiated a number of improvement measures, which also caused us to book restructuring provisions and write-downs. The decline in profitability does not change our long term strategy to continuously focus on performance improvement and to seek suitable growth opportunities within nonwovens, filtration and release liners businesses."

Financial information in 2004

Ahlstrom Corporation will publish its Annual Report for 2003 and the internet version of the report in week 12 and Interim Report for Q1 on May 3, 2004.

Helsinki, February 12, 2004

Ahlstrom Corporation
Board of Directors

The full report with tables can be downloaded from the following link:

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