MALMO, Sweden, Dec. 15, 2003 (PRIMEZONE) -- Teleca's forecast for 2003 in the nine months interim report was significantly increased sales but lower profit compared with 2002.
Restructuring
As a result of continued low utilisation in some operating units in Sweden and France, Teleca has decided to do more restructuring with an estimated cost in Q4 of SEK 25 M, primarily relating to around 80 employees who have been made redundant.
Most of the restructuring has been in five out of a total of 32 operating units which have experienced a tough local market with over supply and price pressure. These units are expected to affect Teleca's Q4 operating result (EBITA) by approximately SEK -40 M. The units are expected to be profitable after restructuring.
Fixed price projects
The fixed price projects mentioned in the nine months interim report continue to affect revenues in Q4. The effect on the operating result is estimated at SEK -11 M. These projects are not expected to have any further effect on the results after Q4.
Results
In total, the operating result (EBITA) for Q4 is expected to be slightly negative.
Teleca is an international consulting company developing and applying advanced technology. The company's business concept is to strengthen the customers' market position and time to market. Teleca builds and integrates solutions for technology and software intensive customers worldwide. Core values are honesty, reliability and hard work. The company has more than 2,600 employees with operations in 15 countries in Asia, Europe and USA. Teleca is quoted on the Attract40 list of Stockholmsborsen (Stockholm stock exchange). www.teleca.com
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