Due to positive development in both order intake and productivity for Aker Yards, the operating results for 2004 are expected to be somewhat better than what has been guided previously. Total revenues, which have been guided to be NOK 11-12 billion for 2004, will end in the top end of the range. The EBITA margin, previously guided to be above 3 %, will end up above 4 %, before non-recurring items.
As announced on 8 September, Aker Yards will combine its entities in Finland into one organization. Today the Finnish yards announced that in order to cover the costs of this restructuring, a non-recurring provision in the level EUR 18-20 million, will be booked against the fourth quarter results. Future synergy effect from the combination is expected to be in the range of EUR 20 million annually. This will mainly be a result of reducing overlapping activities, and concentrate on core competences.
Today, invitation to enter into formal negotiations with the employee representatives, to reduce the workforce at the three yards in Finland has been sent out. Negotiations are expected to start in mid November, and are anticipated to be finalized before mid January 2005. The company last year concluded a corresponding, successful restructuring in Germany, and a similar process is recently implemented for the yards at the Northwest coast of Norway.
Integration project teams have been working to facilitate the merger. Based on these findings, the process is moving into a new phase. To be able to take out synergies from the combination in
Finland, to make the cost-base more flexible, and to improve the productivity, further restructuring measures will be initiated shortly. Among others this will make it necessary to reduce the workforce at the three yards, the preliminary estimation being approximately 700 people in all.
For further information, please contact:
Tore Langballe, SVP Corporate Communications and IR, Aker Yards ASA +47 24 13 01 30
Aker Yards ASA is an international shipbuilding group focusing on complex and sophisticated vessels and is Europe's largest and one of the world's five largest shipbuilders. Aker Yards has a strong position in terms of capacity, product range, technology and experience. The Company's product range includes offshore vessels, cruise and ferry vessels, other complex vessels and merchant vessels. The Group has 13 yards in four countries in Europe and in Brazil. Aker Yards had a revenue of NOK 16 bn. in 2003, and has approximately 14.500 employees. www.akeryards.com