As a result of temporary running-in difficulties in connection with the shift of production to the new factory in North America Brødrene Hartmann A/S lowers expectations for the 2003 operating profit by approx. DKKm 30 to now approx. DKKm 40. Expectations for the net result of the year are hereby reduced to DKK 0.
The Group takes it for granted that the present problems will not have a negative influence on the business development and the result after the running-in period, which will last until beginning 2004.
At present Hartmann is switching the production of moulded-fibre products from two existing plants to one newly established plant in Brantford, Canada. The running-in of the new plant has turned out to be more costly than assumed at first. Added hereto is an unexpected big decline in production efficiency on the plant to be closed down later. The other one of the existing plants has been closed down.
The Hartmann management finds the development very unsatisfactory and has implemented various initiatives a.o.:
that further management resources were added in September to the activities in North America causing considerable improvements in operations at the existing plant as well as at the new plant
that the present extraordinarily high manning at the new plant will be reduced by the end of the running-in period to the same level as that of the other Hartmann plants with similar technology.
It should be emphasized that in spite of the running-in difficulties the targets for efficiency and manning are still expected to be reached by the end of the running-in period, i.e. beginning 2004. Thus, there will be no consequences for the business and profit development in North America after this period.
Brødrene Hartmann A/S
Mogens Petersen
Chairman of the Board
Asger Domino
President & CEO
