Business News
schlott gruppe enacts extensive measures aimed at securing its future
Wednesday 10. June 2009 - Financial and economic crisis contributes to significant fall in demand at schlott gruppe AG
Supervisory Board approves extensive measures aimed at secur-ing the future of the company: streamlining of machine capacity by 20 per cent; reduction in staffing levels with cuts affecting approx. 350 jobs
Outlook for 2008/9 revised downwards by considerable margin
Freudenstadt, June 10, 2009. At its meeting of June 9, 2009, the Supervisory Board of schlott gruppe AG has discussed an extensive catalogue of measures drawn up with the express purpose of securing the future viability of schlott gruppe. The restructuring programme was approved by the majority of the representatives of the shareholders. This programme of measures is aimed at counteracting the negative impact of the economic crisis in terms of production demand and with regard to the significant pressure exerted on prices within the market for print media, in addition to guiding the company back towards profits in a manner that is sustainable in the long term. The management board addresses the concerns of the employees representatives by ensuring all applicable legal preconditions granted to prefect the rights of the employees.
As part of the action plan, the overall capacity of machines deployed within the area of gravure printing is to be scaled back by 20%. At the same time, capacity levels in post-press/finishing are to be adjusted accordingly. Of the 2,330 positions currently filled, around 350 at various locations are to be cut by spring 2010.
In combination with other, supplementary cost-reduction measures, the company will also be looking to raise profitability levels over the coming years. Following implementation of all scheduled measures, schlott gruppe’s pre-tax result is to improve by approx. 25 million by fiscal 2011/12. Within this context, the aim is to post a positive result before taxes (excluding exceptional charges relating to restructuring) as early as the coming financial year.
In the current financial year, the continuing crisis affecting key markets served by schlott gruppe will contribute to a decline in value-added sales by around 10 per cent to approx. 200 million. In total, expenses incurred in connection with the implementation of the above-mentioned action plan will amount to approx. 47 million, to be accounted for in the current and the coming financial year.
The financing banks and the credit insurers used by the company have signalled their general approval of the restructuring concept.
schlott gruppe AG will report on further details in a press release to be issued on 10 June 2009.
Notes to financial data:
Alongside “revenue/sales”, schlott gruppe uses so-called “value-added sales” (VAS) as a financial indicator – both in its external communications and as part of its internal controlling mechanisms. Revenue is subject to fluctuations that are attributable to the volume of paper supplied by customers as raw material for certain projects. In contrast to paper purchased directly by the company, paper supplied by customers is not included in the accounts of schlott gruppe. In the 2007/8 financial year, the so-called paper provision ratio stood at 72.0 per cent. As a financial indicator, “value-added sales” eliminates fluctua-tions relating to paper supplied by customers, thus reflecting the actual sales performance.