CENCORP CORPORATION STOCK EXCHANGE RELEASE 27.06.2008 AT 9:00 AM
STATUTORY NEGOTIATIONS COMPLETED IN FINNISH SITES OF CENCORP CORPORATION
(RELEASE INCLUDES MARKET GUIDANCE)
Negotiation result has been reached in the statutory negotiations started on May
13, 2008 in Cencorp Corporation. Amount of employees in Finnish sites decreases
in all by 25 people. Reductions will be realized mainly by dismissals.
French subsidiary of Cencorp Corporation will end its operations by September
30, 2008. Business operations in France will be simultaneously out-sourced to
local distributors.
Furthermore, Cencorp Corporation still examines different options related to
receiving its American subsidiary profitable as well as possibilities to close
down its subsidiary in Sweden.
By these efficiency improvement measures company reaches approx. EUR 2.5 million
savings in fixed and operational costs. These measures will begin to have a
positive impact on results in fourth quarter of year 2008 and savings are
reached in full during year 2009.
Due to the rearrangements, Cencorp Corporation will register non-recurring costs
approximately EUR 0.9 million for the second quarter of year 2008 as
disclosed in May 13, 2008.
Cencorp Corporation plans to sell its real estates in Lohja
Cencorp Corporation and Catella Property Oy have signed an agreement concerning
arrangement, target of which is to sell industrial facilities of Cencorp
Corporation in Lohja to third party investor and lease back facilities. Surface
area of industrial and office buildings is approx. 5602 square meters. Real
estates are burden by EUR 0.9 million loan from City of Lohja. Target is to sell
real estates during year 2008.
Acting CEO of Cencorp Corporation Changes
Acting CEO Mr. Hannu Seppälä carried out successfully the demanding task given
to him in May 2008 concerning rearrangements in Cencorp Corporation. The Board
of Cencorp Corporation and Mr. Seppälä have agreed that Mr. Seppälä will focus
to be in charge of testing and laser businesses of Cencorp Corporation in the
future. The Board has started process to search a new CEO. CFO Mr. Jarmo Kanervo
has been appointed as acting CEO starting on June 27, 2008.
Management team of Cencorp Corporation consists of following people on June 27,
2008: Acting CEO, CFO Jarmo Kanervo, Sami Lahokoski (production, Lohja), Arto
Timonen (sales and marketing), Hannu Seppälä (testing and laser business) and
Ville Parpola (legal affairs and HR).
Market guidance
Net sales of second quarter are estimated to be approx. EUR 4.0 - 4.2 million
and earnings before interest and taxes (EBIT) are estimated to be approx. EUR
1.1 million negative, including approx. EUR 0.9 million non-recurring costs
related to the rearrangements. Estimation concerning net sales and earnings
before interest and taxes (EBIT) of the third quarter will be disclosed in
interim report concerning second quarter on August 21, 2008. Order book by the
end of second quarter is approx. EUR 1.5 million. Financial position of Cencorp
Corporation continues to be tight.
In Lohja, 27th June 2008
Cencorp Corporation
BOARD OF DIRECTORS
Further information:
Jarmo Kanervo
Acting CEO
Tel. +359 40 5278802
Cencorp develops and supplies automation solutions to the electronics and
semiconductor industry that enhance productivity.
Distribution:
Helsinki Stock Exchanges
Main media
www.cencorp.com
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