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(published in the interim report on October 26, 2017)


Aspo's strong result development continued during the third quarter. I am pleased that all of our businesses did well, and our operating profit increased to EUR 7.1 (6.0) million during the third quarter, even though the Russian market and global sea freight markets, which are important to Aspo, are still on their way to returning to the normal market situation. Our activities aimed at reaching Aspo's long-term financial targets by 2020 are only partially visible. Our financial performance improved notably in January to September, and our earnings per share have grown even stronger than our operating profit.

In spring 2017, Aspo shifted to a practice of paying dividends in two installments. This practice will help Aspo to improve its cash flow management, produce steadier cash flow to our shareholders and reduce volatility of the share price. Aspo will pay the second installment of the dividend for the 2016 financial year, EUR 0.21 per share, in November 2017.

Leipurin made the biggest leap in terms of results. We announced earlier that Leipurin will return to its normal profit level as a result of realigned operations. The significantly improved operating profit of Leipurin during the third quarter is an indication of the ability of the new management and personnel of Leipurin to make determined changes in business and to succeed, for example, in the challenging Russian markets, as well as the positive turnaround in the profitability of machinery operations.

Of Aspo's businesses, the operating profit of ESL Shipping were close to the comparative period, at EUR 3.3 (3.4) million, and its operating profit rate was 18%. The goal of ESL Shipping is to have an operating profit rate of 20–24% in 2020.

Telko has grown into Aspo's largest business. During the economic recession in the EU and the economic crisis in Russia, Telko focused on its regional strategy in the east, on expanding its operations to new countries with transition economies, on improving its efficiency, and on offering added-value products in the western markets. Telko's net sales have shown a strong increase, while its results have been strained by the company's investments, for example, as a result of increased personnel costs. During the third quarter, Telko's results were already satisfactory, driven by positive development. Its operating profit increased to EUR 3.1 million, including EUR 0.4 million in costs arising from the discontinued terminal project in St. Petersburg, Russia, and Telko's personnel arrangements. Profitability increased, especially in the eastern markets, where Telko has, for example, invested in improving the efficiency of logistics. 

Kauko, our smallest business, has streamlined its operations. The mobile knowledge work unit has continued to focus on the development of total solutions, and the separate energy-efficiency equipment unit has grown significantly since Kauko concentrated on an increase in the solar power markets at the correct time. Kauko's structure will be even more streamlined after Chinese operations are discontinued later this year.