Stock Exchange Releases
30.1.2009
Tulikivi Corporation’s 2008 sales are expected to total EUR 66 million (EUR 69.9 million in 2007) and its estimated profit before taxes approximately EUR 2 million (EUR 0.2 million) after impairment. Cash flow from operating activities before investments is expected to be more than EUR 7.0 million (EUR 2.5 million).
The rapid contraction in demand in late 2008 has adversely affected the company’s order books and no improvement is anticipated in the coming months, especially in the domestic market.
The company’s Board of Directors has decided to launch a programme to improve the profitability of Tulikivi Corporation’s operations and to introduce concentration measures in order to secure the company’s profitability in the future. The programme is intended to achieve annual savings of approximately EUR 5 million in future years.
The programme will concentrate operations in the fireplaces and lining stone businesses and in Group administration, and product groups with poor profitability will be discontinued.
As a result of launching the programme, the company has decided to initiate co-determination talks with all Group personnel. The company is seeking a personnel reduction of about 120 persons. The company will also have to introduce lay-offs among its personnel during the current year.
It is estimated that the programme will give rise to approximately EUR 2 million in non-recurring costs.
TULIKIVI CORPORATION
Heikki Vauhkonen Managing Director
Distribution:
NASDAQ OMX Helsinki Ltd Central Media www.tulikivi.com
Additional information: Tulikivi Corporation, 83900 Juuka, tel. +358-207-636 000, www.tulikivi.com – Managing Director Heikki Vauhkonen