BIOHIT GIVES PROFIT WARNING AND STARTS CO-DETERMINATION NEGOTIATIONS IN FINLAND
BIOHIT OYJ STOCK EXCHANGE RELEASE, 3 JUNE 2008 AT 1:40 PM
BIOHIT GIVES PROFIT WARNING AND STARTS CO-DETERMINATION NEGOTIATIONS IN FINLAND It is estimated that the profit of the Biohit Group in 2008 will be lower than expected. During the first quarter of the year, the turnover of the group remained at the level of the corresponding period in the previous year. After the first quarter, the turnover has been increasing but has not yet reached the level expected by the company. The increase of the turnover lags behind the targets set especially in Europe and the US. The net sales of the diagnostics business have not been developing as expected, either. In addition to the net sales trends that were poorer than expected, the company's result during the first quarter of 2008 was weakened by increased personnel expenses, higher financial costs and currency exchange rate losses. The company's profit development has not improved fundamentally even after the first quarter of 2008, even though the net sales have increased during April and May. As the total turnover of the company is expected to remain at a lower level than expected, Biohit will, in order to improve the profitability of the whole group, rationalise its operations during the last part of the year e.g. by cutting down fixed expenses especially in the parent company. In addition to this, cutbacks will be realised in Biohit's subsidiaries. As a part of the plan to improve its profitability, Biohit has decided to start co-determination negotiations with its staff in compliance with the Co-determination Act. The co-determination negotiations, starting in late June, will pertain to a maximum of 21 employees and relate mostly to the production and logistics of the liquid handling business and to the diagnostics business. According to the preliminary plan, the cutbacks in personnel expenses will be realised as indefinite lay-offs that would start in September 2008. In spite of the cutbacks in personnel, the company continues developing its diagnostics business. More detailed information on the financial development of the Biohit Group during the first half of the financial year 2008 will be published in the interim report that will be released on 8 August 2008. Biohit Oyj Osmo Suovaniemi President & CEO Further information: Osmo Suovaniemi, M.D., Ph.D., Professor President & CEO Tel: +358-9-773 861 GSM: +358-40-745 5605 Email: osmo.suovaniemi@biohit.com Distribution: Helsinki Exchanges Central storage facility (www.oam.fi) Press www.biohit.com About Biohit Oyj Biohit Oyj develops, manufactures and markets liquid handling products and diagnostic test systems for use in research, healthcare and industrial laboratories. Liquid handling products include electronic and mechanical pipettes, and disposable tips, as well as pipette maintenance and calibration services. The diagnostics business comprises products and analysis systems for the diagnosis, screening and prevention of gastrointestinal diseases (such as the blood sample based GastroPanel and GastroView for diagnosing diseases of the stomach and associated risks, as well as quick tests for the diagnosis of lactose intolerance and H. pylori infection). Approximately 360 people work for the Biohit group in eight countries. Biohit Oyj is headquartered in Helsinki, Finland. Biohit has subsidiaries in France, Germany, the UK, Russia, China, Japan and the USA. Biohit's products are also sold by approximately 450 distributors in 70 countries. Biohit Oyj's series B shares are quoted on the Helsinki Exchanges (OMX Nordic Exchange Helsinki) in the Small cap/Healthcare group under the code BIOBV. Read more at www.biohit.com