Cargotec to book additional restructuring charges from Hiab and Kalmar merger of MEUR 20 resulting in operating loss for 2009
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 6 OCTOBER, 2009 at
1 PM EEST
Cargotec announced on 22 June 2009 the plans to merge Hiab and Kalmar business areas into a new Industrial and Terminal business area in order to increase efficiency and customer focus. The merger work has proceeded to the Hiab and Kalmar organisations, which develop the product and service offering as well as Americas and Asia-Pacific sales and service regions.
Additional restructuring charges of approximately EUR 20 million are estimated to be booked in 2009. This implies that Cargotec’s earlier guidance of 2009 operating result being slightly positive including approximately EUR 50 million of restructuring costs is lowered. The additional restructuring charge implies that operating result including a full year total of approximately EUR 70 million restructuring charges will be negative for 2009.
The planned reorganisation and capacity adjustment measures are estimated to have an effect of further reducing some 500 employees globally. The already completed and today announced plans including structural capacity adjustment measures are estimated to create total annual savings exceeding EUR 150 million. The savings estimate includes all cost structure streamlining actions announced since the beginning of 2008.
The new business area Industrial and Terminal became operational on 1 October 2009, and the existing Hiab and Kalmar organisations continue until the year end to secure a smooth transition. The new organisation has an empowered frontline, wider management spans and a flat organisation structure to further increase the customer focus and support Cargotec’s initiatives in building a more unified company.
The possible measures for the personnel reductions will be initiated locally in employee cooperation procedures in each country. The major countries affected by the today announced plans are Finland with an estimated impact of 180 persons and Sweden with an estimated impact of 130 persons. Cargotec employs today approximately 1,500 people in Finland and 2,000 in Sweden.
Further information for the press:
Mikael Mäkinen, President and CEO
Tel. +358 (0)204 55 4262
Pekka Vauramo, Senior Executive Vice President and Deputy to CEO
Tel. +358 (0)204 55 4873
Minna Karhu, Vice President, Corporate Communications
Tel. +358 (0)204 55 4630
Further information for the investors:
Eeva Sipilä, CFO
Tel. +358 (0)204 55 4281
Paula Liimatta, IR manager
Tel. +358 (0)204 55 4634
Cargotec improves the efficiency of cargo flows by offering solutions for the loading and unloading of goods on land and at sea – wherever cargo is on the move. Cargotec’s main daughter brands for cargo handling Hiab, Kalmar and MacGregor are global market leaders in their fields. Cargotec’s global network offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec’s sales totalled EUR 3.4 billion in 2008 and it employs approximately 11,000 people. Cargotec’s class B shares are quoted on the NASDAQ OMX Helsinki.