HKScan adjusts EBIT guidance for 2011

HKScan Corporation    STOCK EXCHANGE RELEASE                      26 July 2011 at 15:00

HKScan adjusts EBIT guidance for 2011

In its Q1 interim report released on 6 May 2011, HKScan Corporation stated that “the Group's full-year EBIT is expected to improve compared with 2010.” According to current projections, however, as the international pork market remains difficult and the prices of raw materials and other production inputs remain high, EBIT will fall short of the level projected earlier.

HKScan adjusts its earlier guidance as follows:
The HKScan Group’s full-year EBIT is estimated to be lower than in 2010.

The company's earnings development in the early part of the year has been weaker than anticipated. The ongoing difficult conditions in the international pork market and the rising prices of raw materials and other production inputs are eroding business profitability in all markets, especially in Finland. The overproduction of pork elsewhere in Europe has brought about increased pressure in HKScan's markets to import meat. Pork profitability in Finland is furthermore weakened by the low price level in export markets.

Sales prices will be increased in a bid to improve the poor profitability of pork. The company will also take steps to accomplish an orderly adjustment of pork production volumes in Finland.  The initiated efficiency programmes in Finland and Sweden provide the foundation for more positive development in the Group’s competitiveness and profitability.

HKScan’s Q2 interim report will be released on 10 August 2011.

 
HKScan Corporation
Matti Perkonoja
CEO

 
Further information is available from:
CEO Matti Perkonoja and CFO Irma Kiilunen. Please leave any messages for them to call back with Marja Siltala on +358 (0)10 570 2290.

HKScan is one of the leading food companies in northern Europe with home markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under several well-known local brand names. Its customers are retail, the HoReCa sector, industry and export customers. HKScan is active in nine countries and has some 11,000 employees. It had net sales of 2.1 billion euro in 2010.

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