Elektrobit Group Oyj - EB, ELEKTROBIT CORPORATION STARTS PERSONNEL NEGOTIATIONS IN FINLAND TO DISMISS OR TEMPORARILY DISMISS APPROXIMATELY 150 EMPLOYEES MAXIMUM
October 28, 2010
EB, ELEKTROBIT CORPORATION STARTS PERSONNEL NEGOTIATIONS IN FINLAND TO DISMISS OR TEMPORARILY DISMISS APPROXIMATELY 150 EMPLOYEES MAXIMUM
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Free for publication on October 28, 2010, at 08:30 am (CEST+1)
EB, ELEKTROBIT CORPORATION STARTS PERSONNEL NEGOTIATIONS IN FINLAND TO DISMISS OR TEMPORARILY DISMISS APPROXIMATELY 150 EMPLOYEES MAXIMUM
In order to improve its profitability and to adjust the number of personnel to the lower sales volumes EB, Elektrobit Corporation has today started personnel negotiations based on financial and production related reasons. The negotiations concern the whole personnel and all functions of EB's subsidiary Elektrobit Wireless Communications Oy and Elektrobit Corporation (Oyj) in Finland, altogether approximately 500 employees.
EB proposes to dismiss or temporarily dismiss approximately 150 employees maximum in Wireless Solutions business and EB corporate functions. Targeted cost savings resulting from these measures would be EUR 4 million by the end of the first half of 2011. These measures are not expected to have material effect on the result for the second half of 2010.
EB's outlook for the second half of 2010 according to the announcement of October 25, 2010:
"Considering the current estimated implications of TerreStar Networks' filing for reorganization for EB's profit and financial position in the third quarter of 2010, as well as on the outlook for the parties' business relations during the last quarter, EB expects that net sales for the second half of 2010 will be higher than in the second half of 2009 (EUR 73.6 million) and operating profit for the second half of 2010, without the statutory provision of EUR 8.3 million, will be clearly lower than the operating profit for the second half of 2009 (0.0 million). The weakening operating profit level is mainly due to lowered TerreStar Networks related net sales estimates. It is possible that, based on later information related to TerreStar Networks' reorganization, this outlook may need to be reconsidered."
Oulu, October 28, 2010
Elektrobit Corporation
Jukka Harju
CEO
Further information:
Jukka Harju
Chief Executive Officer
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, Elektrobit Corporation
EB develops advanced technology and transforms it into enriching end user experiences. EB specializes in demanding embedded software and hardware solutions for the automotive industry and wireless technologies. The company's net sales for the year 2009 totaled EUR 153.8 million. Elektrobit Corporation is listed on the NASDAQ OMX Helsinki. www.elektrobit.com
