Elanders makes further cost adjustments in Europe while it expands in China. This has resulted in a forecast revision for 2008.



The international economic slowdown is accelerating the structural
changes in the graphic industry. This creates challenges and new
opportunities."The downturn in the economy provides us with opportunities. It
increases our customers' willingness to look at their publishing
needs with a comprehensive perspective and reduce the number of their
suppliers. At the same time it accelerates the already initiated
structural changes where the focal point has been shifted from
traditionally ordered printing production in offset towards flexible,
recipient customised production in digital print and solutions for
orders through Web-to-print," says Patrick Holm, President and Chief
Executive Officer. He continues:"Elanders is already well-equipped for the structural changes in
terms of technology but a few more steps are needed to successfully
handle the slow economy and in particular, to deal with a different
ordering pattern which will grow stronger once demand is on the rise
again. Along the way we will need to make expansive investments in
such things as cost adjustments and production resources to increase
our competitive capacity."

The following measures will be taken:

  * The Group will reduce its labour force primarily in offset and
    binding operations by a total of 250 employees, of which 135 are
    in Sweden, affecting every place in the country where we have
    operations.
  * We will increase investments in Sweden in Web-to-print and
    digital, recipient customised production while offset and binding
    production will be concentrated to two locations: Falköping and
    Mölnlycke.
  * In 2009 our success in China will be followed up by an expansion
    to handle the market shares we are gaining in the consumer
    electronics segment. We will increase our capacity to manufacture
    packaging and user information.
  * Next year we will invest in new technology in packaging
    manufacture in Hungary to meet demand from customers in consumer
    electronics.

The forecast revision is based on the following factors:

  * Continued general decline in orders from customers, primarily in
    automotives and white goods, in Sweden and Italy, with an
    estimated effect of MSEK -20.
  * One-off costs for adjustments and obligations in Sweden are
    estimated at MSEK -65.


New forecast for the year 2008

The previous forecast was "a pre-tax profit of approximately MSEK 50
and profit after tax of around MSEK 35."

The forecast for the year 2008 is now changed to a negative pre-tax
result of around MSEK -35 and after tax of approximately MSEK -27.


Elanders AB (publ.)

Patrick Holm
President and Chief Executive Officer

For further information please contact:
Patrick Holm, President and CEO tel: +46 (0) 31 750 07 50, mobile:
+46 (0) 708 21 04 10 or
Mats Almgren, Chief Financial Office tel: +46 (0) 31 750 07 60,
mobile: +46 (0) 705 18 19 36
or visit the Group's website www.elanders.com

Attachments

Press release PDF.pdf