Lindab implements a cost and efficiency programme
Against a background of an expected weaker market outlook, and to improve future competitiveness, Lindab has decided to implement a fixed cost reduction programme exceeding SEK 300 m on an annual basis. The measures include staffing cutbacks of approximately 475 employees. Savings will start in the beginning of 2009 and the full effect will be substantially achieved during the second quarter of 2009.
The cost reduction programme includes both headcount reductions and other operating cost reductions. There is an estimated one-time cost associated with the cost reduction plan of approximately SEK 140 m.
The total permanent headcount in the Group will be reduced by approximately 475 (whereof approximately 80 employees in Sweden). Lindab has already reduced the number of temporary staff. This reduction is larger than the normal seasonal adjustment in the number of direct production workers.
David Brodetsky, President and CEO, comments: "We are taking early steps to align our cost base given the current business climate. It is unfortunate that this will affect so many of our employees but it is essential that we take this action now to create the conditions for future development. This will ensure that Lindab strengthens its competitive edge, reinforces its leading position and is able to take advantage of the business opportunities that emerge. We have solid foundations, several new innovative products and strong customer values which are even more important in today's environment."
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The information here is that which Lindab International AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
Contacts:
LINDAB
David Brodetsky, CEO
Email: david.brodetsky@lindab.com
Tel. +46 (0)431 850 43
Nils-Johan Andersson, CFO
Tel. +46 (0)431 850 75
Mobile: +46 (0)7066 85075
Anders Persson, HR Director
Tel. +46 (0)431 851 29
About Lindab:
Lindab is an international group that develops, manufactures and markets sheet metal products and system solutions for the construction sector.
The two business areas, Profile and Ventilation offer complete solutions for construction systems and indoor climate, as well as individual construction and ventilation components for all types of buildings.
Lindab is listed on the OMX Nordic Exchange, Stockholm, Large Cap under the ticker "LIAB".
The Lindab group has approximately 5,600 employees in 31 countries and generated sales of SEK 9,280 million in 2007. Its head office is located in Grevie near Bastad in southwestern Sweden. For more information visit www.lindabgroup.com