Brief: Hexatronic Cuts Short-Term Outlook, Initiates Cost-Saving Program

Hexatronic AB

21/11/2023 14:10

Nov 21 (Reuters) - Hexatronic Group AB  HTRO.ST :
    * HEXATRONIC DOWNGRADES SHORT-TERM OUTLOOK AND INITIATES A
COST-SAVING PROGRAM
    * IS INITIATING A COST-SAVING PROGRAM THAT IS EXPECTED TO
RESULT
IN ANNUAL SAVINGS OF APPROXIMATELY SEK 90 MILLION
    * EXPECTS THAT EBITA MARGIN, EXCLUDING RESTRUCTURING COSTS,
WILL
AMOUNT TO 12-14% FOR SECOND HALF OF 2023
    * HEXATRONIC IS INITIATING A COST-SAVING PROGRAM INVOLVING
AN
ESTIMATED 160 FULL AND PART-TIME POSITIONS
    * RESTRUCTURING COSTS ARE EXPECTED TO AMOUNT TO
APPROXIMATELY SEK
30 MILLION THAT WILL IMPACT Q4 OF 2023
    * DOWNGRADES OUTLOOK DUE TO CONTINUED WEAKENING OF MARKET
FOR
FIBER OPTIC TELECOMMUNICATIONS INFRASTRUCTURE DURING Q4
    * STARTING FROM END OF Q1 OF 2024, PROGRAM IS EXPECTED TO
GENERATE
ANNUAL COST SAVINGS OF APPROXIMATELY SEK 90 MILLION
    * PROGRAM MAINLY RELATES TO A REDUCTION OF PRODUCTION STAFF
BUT
ALSO WHITE-COLLAR WORKERS IN FIBER SOLUTIONS IN SEVERAL OF
COMPANY'S GEOGRAPHICAL MARKETS
    * EXPECTS DETERIORATION IN ORGANIC SALES GROWTH IN Q4 OF
2023
COMPARED TO Q3 OF 2023

Source text for Eikon:  ID:nGNE75nflG 
Further company coverage:  HTRO.ST 

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