PKC Group Plc Company Announcement 24 June 2015 09.30 am
PKC Group adjusts production capacity in South America
The Brazilian truck production volumes have continued to decrease further and the full year 2015 heavy duty truck production is estimated to be down by 50% from 2014. In addition, the medium term annual growth outlook for truck production in Brazil is estimated to be below 4% and production volumes are estimated to normalise by year 2022. In a view of this recent development and medium term outlook PKC Group has decided to consolidate all its production capacity in Brazil to Campo Alegre factory.
The adjustment measure will affect 550 jobs in Curitiba and is estimated to be completed by end of second quarter of 2016. The related non-recurring expenses are estimated to amount to approximately EUR 5 million of which about EUR 1 million is non-cash. The non-recurring expenses will be recorded into second quarter 2015 interim report.
The production capacity adjustment will improve PKC Group’s profitability in Brazil and has no impact on PKC Group’s outlook for 2015.
PKC Group Plc
Board of Directors
Matti Hyytiäinen
President & CEO
For more information, please contact:
Matti Hyytiäinen, President & CEO, PKC Group Plc, tel. +358 (0)400 710 968
Distribution
Nasdaq Helsinki
Main media
www.pkcgroup.com
PKC Group is a global partner, designing, manufacturing and integrating electrical distribution systems, electronics and related architecture components for the commercial vehicle industry, rolling stock manufacturers and other selected segments. The Group has production facilities in Brazil, China, Estonia, Finland, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The Group's revenue in 2014 totalled EUR 829.5 million. PKC Group Plc is listed on Nasdaq Helsinki.