Jaakko Pöyry Group Oyj has decided to discontinue its loss-making alcohol plant contracting business. Incorporated into the Energy business group, the contracting business had net sales of about EUR 31 million in the year 2000. According to the annual report for 2000, the Group's strategic aim is to improve its relative profitability and to raise its operating profit to more than 8 per cent of net sales. Because of the nature of the contracting business its profitability is lower than that of consulting and engineering projects. The present decision is a part of the effort to improve the Group's relative profitability.
To cover the expenses of discontinuing the alcohol plant contracting business, Jaakko Pöyry Group Oyj will include an extra reserve of EUR 6 million in the first-quarter results for 2001. Correspondingly, the consolidation surplus from the Swedish Staff Pension Society (SPP) for the year 2000, which amounts to a total of EUR 5 million and which has not been booked in the annual accounts for 2000, will be booked in the first-quarter results for 2001.
JAAKKO PÖYRY GROUP OYJ
Erkki Pehu-Lehtonen
Teuvo Salminen