TULIKIVI CORPORATION STOCK EXCHANGE RELEASE
January 30, 2009 at 10.00
TULIKIVI TO LAUNCH A PROGRAMME OF PROFITABILITY AND CONCENTRATION
MEASURES
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