Helsinki, Finland, 2015-04-30 11:00 CEST (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC OYJ STOCK EXCHANGE RELEASE 30 APRIL 2015 at 12:00 am
VAAHTO GROUP'S SUBSIDIARY JAPROTEK OY AB'S EQUITY NEGATIVE AND THE GROUP'S OPERATIVE RESULTS FOR THE FIRST QUARTER LOWER THAN EXPECTED
Japrotek Oy Ab's earnings on the first quarter of 2015 have fallen negative, and, due to the losses recorded, also its equity has turned negative. The reasons for the negative earnings are costs relating to certain projects' deliveries being higher than expected and orders being lower than expected on the first quarter. Cost-saving actions will be commenced immediately at the company. Also the cost-saving effects of the group's program for adjusting operations and costs, which also affects Japrotek, will concentrate on the latter part of the ongoing financial period and will be fully implemented in the early part of the 2016 financial period.
In the group's full-year results disclosure published on 27 February 2015, the group's development prospects were assessed as follows: "Market situation for Vaahto Process Technology remains challenging. However, the order book is at a good level. Number of offers has increased significantly and the amount of investment decisions is expected to grow again during the spring 2015. The reached stabilization arrangement improves the possibilities of the company in the competitive biddings."
Following the publication of the group's full-year results disclosure, the volume of new sales has been lower than expected especially at Japrotek. Therefore also the operative results of the continuing operations of the group will be negative on the first quarter. The financing arrangement disclosed in February will, however, have an effect on the group's net results on the first quarter such that the net results after non-recurring items will be positive. The program for adjusting the operations and costs, which was commenced and disclosed in February 2015, has progressed as planned.
In Lahti on 30 April 2015
VAAHTO GROUP PLC OYJ
The Board of Directors
Information:
Sami Alatalo, Chairman of the Board, Vaahto Group Plc Oyj +358 40 826 2066
Kalle Rasinmäki, CEO, Vaahto Group Plc Oyj +358 40 566 4250