Alfa Laval announces a programme of action as a result of the strategic review. It is clear from a press release.
Kostnadsbesparningarna reported in the interim report released on Tuesday morning and covers the sale and administration and a reduction of the number of factories. The annual savings are expected to amount to approximately sek 300 million.
“in Parallel, our ongoing work with cost reductions in production, in purchasing as well as staffing”, , tom Erixon.
the one-off costs for the program are estimated to approximately sek 1.5 billion.
the savings programme launched since Alfa Laval’s profit before tax slumped to 93 million, compared to 1 336 million in the corresponding period last year. Analysts in the Reuters summary had anticipated a profit of eur 1 001 million.
Although net sales declined, down to 8 581 million, compared with sek 9 639 million in the prior year.
net Sales amounted to sek 8 581 million, compared with 9 693 million a year earlier.
the Company believes at the same levels in the next quarter.
“We expect demand during the fourth quarter of 2016 will be at the same level or slightly higher than in the third quarter,” writes the man.
Tom Erixon, president and ceo, said that today’s program is mainly focused on officials:
“You should have in mind that the program we are announcing is very focused on managerial levels and the officials, and not primarily a capacity adaptation in the production. It does not mean that no other action is done; you look at the examples in the report that we reduced the staff by 200 people so far this year and we have made about the corresponding reduction in the bemanningsanställda that are not visible in personalstatistiken”, said ceo Tom Erixon in question.