Outotec initiates further measures targeting EUR 45 million cost structure improvement
(Thomson Reuters ONE) -
OUTOTEC OYJ STOCK EXCHANGE RELEASE OCTOBER 30, 2014 at 9.05 AM
Outotec initiates further measures targeting EUR 45 million cost structure
improvement
To be prepared for possibly continuing market slowness and uncertainty, Outotec
proceeds with measures to enhance profitability and launches a new program
targeting approximately EUR 45 million savings in operating costs during 2015,
compared to 2014 full year cost level. The savings are expected to contribute in
full to 2015 profitability. Year 2014 operational gross fixed costs (including
delivery, sales and marketing, R&D and administrative functions) are estimated
to be approximately EUR 530 million. The estimated one-time costs from the
program for 2014 and 2015 will be at maximum EUR 40 million. Up to 400 full time
equivalent employees or contractors are expected to be reduced as part of the
program.
The planned profitability enhancement measures include restructuring of
Outotec's operations in sales, delivery and global functions, as well as closing
of some offices. To streamline the way of operating and improve efficiency,
Outotec plans to centralize engineering work into engineering hubs, consolidate
project implementation capabilities into fewer locations, centralize purchasing
into supply hubs, as well as establish service centers and resource pools for
administrative functions. Outotec has been investing in building and deploying
common business processes and information technology platforms since 2011
reaching a sufficient capability during 2014 to enable the company to take the
next steps in integrating its operations globally.
Most of the effects of the considered restructuring on different personnel
groups and locations will be determined on country basis by the end of 2014. The
planned measures may include redundancies, early retirements and discontinuing
fixed-term agreements in late 2014 and during the first half of 2015. In
addition, temporary lay-offs may be used to achieve the targeted savings,
depending on capacity utilization. At the end of September 2014, Outotec
employed 4,948 persons.
Further information will be provided during the course of the profitability
improvement program and the savings will be reported as part of quarterly
results reporting.
For further information please contact:
OUTOTEC
Mikko Puolakka, CFO
Tel. +358 20 529 2002
Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198
Emails: firstname.lastname(at)outotec.com
DISTRIBUTION:
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Main media
www.outotec.com
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Outotec Oyj via GlobeNewswire
[HUG#1867022]
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2014 - 08:05 Uhr
Sprache: Deutsch
News-ID 348235
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