DGAP-News: Gigaset AG: Gigaset AG concludes first phase of realignment
(firmenpresse) - DGAP-News: Gigaset AG / Key word(s): Restructure of Company
Gigaset AG: Gigaset AG concludes first phase of realignment
08.10.2012 / 16:29
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Gigaset AG concludes first phase of realignment
and will focus more on future growth
Munich, October 08, 2012. Gigaset Group today terminated a general
agreement with the employee representatives to cut 279 jobs at the Munich
and Bocholt locations. The reductions are to be made in a responsible
manner by setting up a transfer company. Rapid conclusion of the agreement
means that the personnel reductions start considerably earlier than
expected. Because of further reductions in non-personnel and service costs
the cost-cutting target of at least EUR30 million a year can be achieved
with fewer job losses than originally announced.
'Today we are concluding the first part of Gigaset AG's restructuring and
entering the second phase. We will now turn our focus more toward Gigaset's
future growth,' says Charles Fränkl, Chief Executive Officer of Gigaset AG.
Job reductions through a transfer company
Under the general agreement, which was set in place after just eight weeks
of negotiations, 207 jobs are to be eliminated at Bocholt and 72 at Munich,
66 less than originally planned. The cuts will be achieved through offers
to move to a transfer company, early retirement, attrition and expiry of
temporary contracts. To this end, the company and the IG Metall trade union
have concluded a new special collective bargaining agreement that will run
until the end of 2015. Under this agreement, 965 jobs will be guaranteed.
The employees to be made redundant are to move to a transfer company, where
they will be given assistance in finding new employment. The transfer
company will exist for a term of twelve months. Further 30 positions are
planned to be reduced outside of Germany still. The cost-cutting and
efficiency program was necessitated after Gigaset suffered a decline in
earnings in the first half of 2012 due to the euro crisis and the strong US
dollar.
New organizational structure strengthens competitiveness
The employee representatives also agreed to the company's organizational
restructuring. Gigaset will create three Business Units: Consumer Products
(its core business), Business Customers and Home Networks (smart home
solutions). All of the new units will operate with a strong entrepreneurial
mindset and thus have the freedom they require to be successful in their
respective markets. As a result, the company's competitiveness should be
strengthened and future growth enabled. As of next year, the three Business
Units will also be part of a planned new Product Center in Düsseldorf,
where they will benefit from their proximity to the Bocholt production
site. 34 jobs shall be created there. Gigaset hopes to boost efficiency by
optimizing its geographical setup in this way.
The restructuring that has now been finalized is expected to entail
non-recurring costs of around EUR20 million, for which Gigaset will
immediately set up a provision, but in conjunction with cutting additional
non-personnel and service costs the company will also generate annual
savings totaling at least EUR30 million. Including restructuring costs,
Gigaset expects a slightly negative EBITDA in this fiscal year. After
adjustment for this one-off effect, the company anticipates a positive
EBITDA, although it has already announced that this will be well below that
of the previous year.
The company has set itself the target of achieving revenue of EUR500 to 560
million and an EBITDA margin of around ten to 13 percent in 2015 thanks to
its improved setup and the new Business Units.
Gigaset AG, Munich, is a interantionally operating company in the area of
communications technology. The Company is Europe's market leader in DECT
telephones. The premium supplier ranks second worldwide with around 1,700
employees and a market presence in more than 70 countries.
Gigaset AG is listed on the Prime Standard of Deutsche Börse and thus is
subject to the highest requirements for transparency. Its shares are traded
on the Frankfurt Stock Exchange under the symbol 'GGS' (ISIN:
DE0005156004).
Contact:
Gigaset AG
Stefan Zuber
Corporate Communications
Tel.: +49 (0)89 444456-600
E-mail: info.presse(at)gigaset.com
Kerstin Diebenbusch
Investor Relations
Tel.: +49 (0)89 444456-937
E-mail: info(at)gigaset.com
End of Corporate News
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08.10.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Gigaset AG
Hofmannstraße 61
81379 München
Germany
Phone: +89444456937
Fax: +89444456930
E-mail: kerstin.diebenbusch(at)gigaset.com
Internet: www.gigaset.com
ISIN: DE0005156004
WKN: 515600
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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188013 08.10.2012
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Datum: 08.10.2012 - 16:29 Uhr
Sprache: Deutsch
News-ID 190331
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Kategorie:
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