STOCKHOLM, Sweden, July 22, 2005 (PRIMEZONE) -- The Board of Pergo has approved the management's recommendation to hasten the restructuring of its European operations. After having recently completed the consolidation of its manufacturing facilities in Sweden, the Company will now look to further optimize its cost structure.
The program will focus on reducing corporate and fixed overheads, improve productivity and create global synergies in purchasing, information technology as well as product design and development.
The changes planned in the business model will produce approximately SEK 100 million in annualized savings. The impact of these actions will be fully realized in 2006. Additional costs associated with the improvement program will be absorbed in our current operating outlook and are not expected to have any material effect on 2005 anticipated results.
"The right sizing of the European business model, says Tony Sturrus, CEO of Pergo AB, is consistent with the commitment to improve competitiveness and financial performance. It will enable us to move more quickly and drive to achieve our targets of 8% profitability and 20% return on Capital Employed."
Pergo is a leading flooring company with leading market positions, particularly in Europe and the U.S. Net sales amount to approx. SEK 2.8 billion and the number of employees is around 800. Pergo developed laminate flooring at the end of the 1970s and launched the product in Europe during the 1980s. The company started sales in the U.S. in 1994 and later also in Asia 1995 and Latin America 1997. The company's products have been marketed under the PERGO(r) brand name since 1989. The company is listed on the Stockholm Stock Exchange's O-list. For further information about Pergo, please visit our website www.pergo.com.
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