Strong Markka Hits Huhtamaki Results

As a result of strong local currency and a weak US dollar, Finish consumer products and pharmaceuticals group Huhtamaki saw 1995 profits after financial items drop 29% to 312 million markka ($68.9 million), while consolidated net sales declined 5% to 7.8 billion markka ($1.72 billion), according to preliminary figures.

Moreover, lower domestic interest rates diminished Huhtamaki's financial income, whereby net financial expenses, at 132 million markka, remained virtually unchanged. A net expense of 21 million markka was recorded from associated companies. Full audited results are due later this month.

And Leiras Profits Down For the group's pharmaceutical subsidiary Leiras, added to the negative currency factors were higher R&D spending and a low volume of contraceptive implants, which impacted on both turnover and profit. But net sales declined only marginally to 857 million markka, while operating earnings dropped 22% to 135 million markka, the company stated.