EVRY initiates measures to strengthen competitiveness
(Thomson Reuters ONE) -
(Oslo, 17 August 2015) Due to unsatisfactory financial performance, EVRY has
conducted a thorough review of the cost base. The review concludes that costs
and expenses currently are too high, and not aligned with the company's market
position and growth performance. To strengthen profitability and long-term
competiveness the Company has decided to intensify previously announced cost
reduction measures and launch new initiatives.
The cost reductions will affect all reporting segments. The following measures
will ensure a lower cost base when the company enters into 2016:
* Complete the cost reduction program notified 25(th) of November 2013, when
it became clear that the non-mainframe services agreement with DNB was
subject to phase-out during 2014 and 2015, with an annual negative revenue
impact of respectively NOK 200 and NOK 400 million as previously announced.
The completion of the program will take place by the end of 2015.
* Realize synergies of the reorganization of the EVRY Norway segment -
combining Industries Norway and Regions Norway to simplify the organisation
and drive efficiency.
* Realize synergies by implementing new and simplified operating model in EVRY
Sweden.
* Reduce the number of legal entities in the EVRY Sweden segment to harmonize
business operation, create synergies and increase efficiency.
* Reduce Selling, General and Administrative Expenses by streamlining staff
and support functions on Corporate and Business Area level.
- To reach the goal of being the Nordic Champion in IT Services we have to
improve our competitive position and increase profitability. This is
particularly important to create room for investments in new services and
knowledge. Aligning costs to revenue level and growth momentum is a first and
important step. In addition, we need to put in place measures that simplifies
internal processes and helps the company become even more agile and customer
centric, says CEO Björn Ivroth.
The measures described above will affect around 500-550 FTE's in Norway and
Sweden. In addition to reducing the workforce several other initiatives are
taken to reduce the overall cost base - including a reduction of consultancy
spend and administration costs. The restructuring has a yearly estimated cost
effect of NOK 400-500 million. Provisions related to the restructuring is
estimated to NOK 260-320, and will be recognized in the third and fourth quarter
of 2015.
The right-sizing measures have a total estimated cost reduction effect of NOK
400-500 million per year. The right-sizing is estimated to a total cost of NOK
260-320 million and will be provisioned in the third and fourth quarter of
2015.
This information is subject to disclosure requirements pursuant to section 5-12
of the Norwegian Securities Trading Act.
For further information, please contact:
Knut E. Røsjorde, CFO, tel +47 95205786
Jørn Bremtun, VP Communications, tel +47 92209735
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(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: EVRY via GlobeNewswire
[HUG#1945891]
Unternehmensinformation / Kurzprofil:
Datum: 17.08.2015 - 06:56 Uhr
Sprache: Deutsch
News-ID 413987
Anzahl Zeichen: 3855
contact information:
Town:
Oslo
Kategorie:
Business News
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