English

SALES CONTRACT BETWEEN LÄNNEN TEHTAAT AND SUCROS ENDS

Report this content 
LÄNNEN TEHTAAT PLC     STOCK EXCHANGE RELEASE      DECEMBER 9, 2005, 11.00 a.m


SALES CONTRACT BETWEEN LÄNNEN TEHTAAT AND SUCROS ENDS

Lännen Tehtaat plc's associated company Sucros Ltd has cancelled its contract
with Lännen Tehtaat concerning the sale of Dansukker consumer products. The
contract will expire on December 31, 2005. As of January 1, 2006, the sale of
Dansukker consumer products will be carried out by Sucros Ltd directly. This will
reduce the turnover of the Food Division, and thus the Lännen Tehtaat Group, by
about EUR 45 million, and the operating profit by about EUR 2 million, as of
2006. In recompense for the termination of the contract, Lännen Tehtaat plc will
receive compensation over the next six years amounting to a total net present
value of about EUR 7 million. This total sum will be entered in the present year,
thus affecting the 2005 results. The new arrangements will raise the 2005
earnings per share by about EUR 0.70 and reduce the earnings per share in the
coming years by about EUR 0.10.

This operating model will improve the cost-effectiveness of the Finnish sugar
production chain and streamline the processes serving customers.

Sucros Ltd is owned by the Danish company Danisco (80%) and Lännen Tehtaat plc
(20%). It produces sugar at the Säkylä and Salo sugar beet factories and the
Kantvik sugar refinery, and also produces isoglucose and glucose syrups at its
factory in Jokioinen. The restructuring arrangement will have no effect on Lännen
Tehtaat's ownership in Sucros Ltd.


LÄNNEN TEHTAAT PLC

Matti Karppinen
CEO

More information: Matti Karppinen, CEO, tel. +358 10 402 00

Distribution:
Helsinki Stock Exchange
Principal media
www.lannen.fi

Subscribe