STATUTORY EMPLOYER-EMPLOYEE NEGOTIATIONS ON MARIMEKKO’S OPERATIONS IN SULKAVA AND KITEE HAVE BEEN COMPLETED; DUE TO NONRECURRING COSTS, THE COMPANY REVISES ITS ESTIMATE OF OPERATING PROFIT FOR 2013
Marimekko Corporation, Stock Exchange Release, 16 May 2013, 9:30 AM
Statutory employer-employee negotiations, initiated in March 2013 by Marimekko Corporation on potential permanent staff reductions concerning the personnel of its manufacturing operations and the adjacent factory outlets located in Sulkava and Kitee, Finland, have been completed. The negotiations did not concern the personnel of the production plant in Helsinki.
As a result of the negotiations, Marimekko is to close its production plants located in Kitee and Sulkava as well as their adjacent factory outlets. The arrangements will lead to the termination of 60 jobs in all. In the proposal for the negotiations, it was estimated that the closure of the production plants and factory outlets would result in a permanent reduction of a maximum of 60 employees. Marimekko is currently negotiating to lease new store premises, and if suitable premises are found, the company may be able to employ some of the personnel that are now made redundant. In addition, employment possibilities related to production are also explored.
The reductions in staffing and other actions to be effected are expected to bring an approximate total of EUR 1.0 million in annual cost savings. The savings will be realised gradually from the beginning of 2014, and the full impact of the profit improvement will start to be felt in the third quarter of 2014. The aim of the actions is to make it possible to manufacture more profitable products and to secure business competitiveness also in the future. The arrangements are estimated to incur nonrecurring costs in the amount of around EUR 1.0 million in the second quarter of 2013.
Due to the nonrecurring costs arising from the negotiations, Marimekko revises its estimate for the 2013 operating profit, which the company forecast in its Q1 interim report issued on 7 May 2013 to be, at the most, at the same level as in 2012. According to the new estimate, the Group’s operating profit for the whole year 2013, excluding nonrecurring items, is forecast to be, at the most, at the same level as in 2012. The estimate for net sales given in the interim report remains unchanged. The updated estimate for 2013 in its entirety goes as follows: the Marimekko Group’s net sales are estimated to grow by over 5 percent and operating profit excluding nonrecurring items is forecast to be, at the most, at the same level as in 2012.
MARIMEKKO CORPORATION
Corporate Communications
Merja Paulamäki
Tel. +358 9 758 7473
merja.paulamaki@marimekko.fi
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
Marimekko is a Finnish textile and clothing design company renowned for its original prints and colours. The company designs and manufactures high-quality interior decoration items ranging from furnishing fabrics to tableware as well as clothing, bags and other accessories. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in approximately 40 countries. In 2012, brand sales of Marimekko products worldwide amounted to approximately EUR 187 million and the company's net sales were EUR 88 million. The number of Marimekko stores totalled 108 at the year end. The key markets are North America, Northern Europe and the Asia-Pacific region. The Group employs around 500 people. The company’s share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com
|