Hexagon to launch a cost savings programme
Hexagon AB, a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications, today announced the launch of a cost savings programme to further accelerate margin improvement, set to be implemented in the first quarter of 2017.
At Hexagon’s Capital Markets Day (CMD) in December 2016 a new financial plan was launched to reach a sales target of 4.6-5.1 billion EUR and an EBIT margin of 27-28 per cent by 2021. The profitability will be improved through new applications, richer software mix and acquisitions.
Also, as discussed during the CMD, Hexagon will accelerate its solution-centric strategy by increasing R&D spend and investments in sales resources and reducing non-accretive operating expenses. Hence, Hexagon will launch a company-wide cost savings programme in Q1 2017 with a focus on reducing administration costs.
The programme will affect approximately 480 employees and is expected to drive cash cost savings of approximately 24 MEUR in 2017 and 43 MEUR per annum as of 2018 when fully implemented.
The cash flow impact of the programme amounts to approximately -34 MEUR. The restructuring costs will be reported as non-recurring items (NRI) in Q1 2017.
For further information, please contact:
Maria Luthström, Investor Relations Manager, Hexagon AB, +46 8 601 26 27, firstname.lastname@example.org
Kristin Christensen, Chief Marketing Officer, Hexagon AB, +1 404 554 0972, email@example.com
This information is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:59 CET on 6 February 2017.
Hexagon is a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications. Hexagon's solutions integrate sensors, software, domain knowledge and customer workflows into intelligent information ecosystems that deliver actionable information. They are used in a broad range of vital industries. Hexagon (Nasdaq Stockholm: HEXA B) has more than 16,000 employees in 46 countries and net sales of approximately 3.0bn EUR. Learn more at hexagon.com and follow us @HexagonAB.