It is the failure in sales Kverneland expects autumn that makes now must resort to layoffs. According to a press release that Kverneland Group sent out Tuesday afternoon rains now only be able to keep production at 60 percent of normal levels between now and the year, according to Stavanger Aftenblad.
For the full year estimate Kverneland with the decline in sales being at 20 percent compared to sales last year.
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layoffs will affect both employees production and officials, and according to the message from now hope the management that the layoffs are short-lived and that all who are affected will be back full time as soon as possible.
Russia-failure
– Already towards the end of 2014, we saw that the market for plow and other agricultural machinery declined significantly, partly as a result of the political situation in Russia and Ukraine and a general economic slowdown in Western Europe, according to the press release.
Although Kverneland has managed to offset part of the decline with increased market share and in parallel with this custom costs to a lower volume through hiring freezes, Amended shifts, reduction in overtime, consumption of contractual work and other cost-saving measures, the measures are still not enough to offset the decline in sales which now now anticipate will come.
Better next year
CEO Trygve B. Martinsen in Kverneland Group rains still not a lasting downturn in sales.
– We believe sales will pick up again during the next year, and there is therefore no question of layoffs, says Martinsen to Aftenbladet.
He added that management has held close contact with the unions ahead of the layoff notice.
– We have a good dialogue, says Kverneland boss.
Kverneland Group has 570 employees and last year had revenues of 900 million. Although now expect a sales decline of 20 percent, hope the management at a satisfactory profit.
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