EXEL'S SPORT DIVISION'S RESTRUCTURING MEASURES CONTINUE

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EXEL OYJ  STOCK EXCHANGE RELEASE   24.8.2006  AT 9.45    1 (2)

EXEL’S SPORT DIVISION’S RESTRUCTURING MEASURES CONTINUE

As announced earlier, the demand for the Sport Division’s consumer
products is weak in Germany. New markets cannot compensate the low
demand situation. As a result, restructuring measures aimed at
cutting costs will be initiated promptly.
The sales, distribution and marketing costs will be adjusted to the
present market situation. Sales of the consumer products will be
concentrated on core product groups, i.e. poles and floor ball and
related accessories. As a result, the operations in question will be
reorganized meaning that the work contribution of some 20 persons
will no longer be needed. A major part of the personnel reductions
concerns the Sport Division’s sales companies outside of Finland.
Negotiations with the personnel will be commenced immediately. The
restructuring program will incur major nonrecurring costs estimated
at some EUR 3-3.5 million.
The sales of the Industry Division, accounting for some 75% of the
total Exel Group sales, have proceeded as planned, although shortage
of carbon fiber still prevails on the raw material markets. The
reorganization of the factory in Belgium will continue to weaken the
Industry division´s operative profit to some extent during the rest
of the year.
Non-recurring costs amounting to EUR 3.6 relating to the
reorganization of the Sport Division, IFRS valuation items relating
to the acquisition of Pacific Composites Pty. Ltd and the
consolidation of the UK factories million have been recorded into the
first half-year result of 2006. Thus, the total non-recurring costs
in the result of 2006 will amount totally to some EUR 6.5-7 million,
out of which some EUR 1.0 million affects cash flow.
Based on the above, the Group’s full year pre-tax profit after non-
recurring costs is estimated to be negative.


Mäntyharju 24.8.2006


Exel Oyj
Board of Directors


Further information:
Mr. Ari Jokelainen, President & CEO, tel. +358 50 590 6750



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