Lindab announces cost-saving plan of SEK 150 million

Lindab is announcing a cost-saving plan estimated to save approximately SEK 150 million on annual basis. The plan will be rolled out between now and mid-2012 and includes a headcount reduction of approximately 250 as well as operating cost reductions.  The one-off costs relating to the programme amount to approximately SEK 110 m and will be recorded up to Q2, 2012.

President and CEO David Brodetsky comments:

"We have been outperforming the market growth and gaining market share during a difficult 2011, but the recovery is slower and will take longer than expected. We need to continue to adapt our business, improve efficiency and reduce our fixed costs to improve our performance. Implementing job cuts is always regrettable, but with no significant upturn in sight in the short term, we have to act and make sure that we improve our competitiveness. In parallel, we will continue to strengthen our positions in our core products in line with our strategy.

The cost-saving plan will contribute with over SEK 100 m to our EBIT on an annualised basis even after compensating for inflation and for costs related to new sales growth activities. It is an important step in improving the underlying profitability of the business and supports the new short-term financial target of reaching an EBIT of at least 10 percent."

 

End

The information here is that which Lindab International AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.

Contacts:

LINDAB
David Brodetsky, CEO
Email: david.brodetsky@lindab.com
Mobile: +46 (0)73 274 5418

Lindab - A Ventilation and Building Products company:

Lindab develops, manufactures, markets and distributes products and system solutions primarily in steel for simplified construction and improved indoor climate.

The business is carried out within three business areas, Ventilation, Building Components and Building Systems. The products are characterised by their high quality, ease of assembly, energy efficiency, consideration towards the environment, and are delivered with high levels of service. Altogether, this increases customer value.

The Group had net sales of SEK 6,527 m in 2010, was established in 31 countries and had approximately 4,400 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2010, the Nordic market accounted for 45 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 22 percent, Western Europe for 29 percent and other markets for 4 percent of total sales.

The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Mid Cap. For more information visit www.lindabgroup.com