Kongsberg Automotive will establish its headquarters in Switzerland and reduce the number of production facilities to 25 from 31 to centralize the business.
– An important part of the planned centralization is to establish an operational konsernhovedkvarter in Switzerland, writes the company in a presentation to be held Tuesday.
the Cause of the transformation, which should take three years, among other things, that the company is not flexible enough to handle the variation in the orders from the customers.
most installations that shut down are located in Europe, and is mainly within the company’s powertrain and karosserivirksomhet. Kongsberg Automotive says that forbedringsplanen is aggressive, but important to improve your business and make money.
the Reorganization should be viewed as far in overtime, writes the company.
Reduce costs
Kongsberg Automotive will now invest 48 million euros in improving the business, and expect that this will contribute to annual savings of around 30 million euros by 2020.
The structural our costs are too high, we will reduce them, writes the company.
At a capital markets day on Tuesday, the company shall announce how driftsmodellen to be changed in order to bring down the structural cost. The company also says that the powertrain – and karosserivirksomheten is “sick”, it will say that costs are too high, and must be changed.
As it is today, a small decrease in revenues often destroy the company’s results, while the increase in revenue does not have similar positive effects, says the company’s ceo, Henning E. Jensen in the quarterly report for the third quarter.
Measures to improve the company’s annual profit after tax of around eur 70 million in three years, from a level of between 5 and 20 million euros, says the company according to the presentasjonsmaterialet from the capital markets day.
Clip system
the Company says that it will reorganize the various units, so that it makes a unit for the interior and cables, one for the powertrain and the vehicle body, and a device for special – and niche vehicles.
the Company says that the aim of the reorganisation is to increase productivity, centralize operations and improve processes and systems so that the costs fall.
the Company’s result after tax was minus 8 million euro in 2015. Including the cost of the reorganization is the result after tax was calculated to be 6 million euros in the year and 3 million euros next year, before it takes up to 35 million euros in 2018 and 73 million euro in 2019, according to the company.
If this is successful, corresponds to the increase that the result per share (earnings per share) rising to the 1.65 million in 2019, from minus 19 cents per share in the year-ago quarter.
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