Espoo, Finland, 2016-05-24 14:00 CEST (GLOBE NEWSWIRE) --
EFORE PLC Stock Exchange Release May 24, 2016 3.00 p.m.
Efore Plc downgrades its financial estimate for 2016 due to lower than forecasted demand during the first half of the year and due to challenges in production.
New financial estimate is:
The Company estimates its net sales of financial year 2016 to be lower than in the previous year (2015: EUR 89,9 million), and results from operating activities without one-time items to be negative, but better than in the previous year (2015: EUR -1,6 million).
Previous financial estimate was:
The Company estimates its net sales of financial year 2016 to be higher than 2015, and the results from operating activities without one-time items to be positive.
Efore Plc prepares outsourcing of manufacturing as well as manufacturing support functions at the Suzhou plant in China with selected EMS partners, as earlier disclosed on March 30, 2016.
The target of the outsourcing is to improve Efore’s cost structure and flexibility as well as to improve the company’s ability to expand its customer base in new markets according to the strategy. As a result of this, the company can allocate more resources especially in sales and in core competencies of product development.
The target is to finalize the outsourcing negotiations during the third quarter of 2016.
Furthermore, the company has started actions to reduce its fixed cost structure.
Efore will publish its half year report on August 10, 2016.
EFORE PLC
Jorma Wiitakorpi
President and CEO
For further information please contact on May 24, 2016 at 4-5 p.m. Jorma Wiitakorpi, President and CEO, tel. +358 40 175 8510.
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding power products. Efore's head office is based in Finland and its production units are located in China and Tunisia. Sales and marketing operations are located in Europe, United States and China. In the fiscal year ending in December 2015, consolidated net sales totalled EUR 89,9 million and the Group's personnel averaged 887. The company's share is quoted on the Nasdaq Helsinki Ltd. www.efore.com