STOCKHOLM, Sweden, Aug. 23, 2005 (PRIMEZONE) -- Pergo (Other OTC:PGABF) (Stockholm:PERG), a leading flooring company, today announced more details on the European improvement program announced in the Q2 report on July 22nd 2005. The program is to achieve SEK 100 million in annualized savings. As a consequence of the improvement program, the number of employees will be reduced by approximately 120. Most of these reductions will take place in the European organisation. The reduction equals approximately 25 percent of the European workforce. Many of the reductions are subject to agreement and negotiations with the unions.
"Pergo has extremely dedicated employees. To have to tell some of them to leave the Company is most unfortunate. The organization reductions are necessary to improve our market competitiveness and overall financial performance in Europe," says Tony Sturrus, CEO of Pergo.
The main focus of the program will be to reduce corporate and fixed overheads, improve productivity and create global synergies in purchasing, information technology as well as product design and development. Of the approximately 120 employees that are affected by the program, about 75 employees are based in Sweden. Of these approximately 40 are white-collar workers and the rest blue-collars. When the program is fully implemented by the end of 2005, Pergo will have approximately a total staff of 625 people. Negotiations starts today with the Swedish unions according to the regulatory system of the Swedish labour market, so called MBL-negotiations.
Additional costs associated with the improvement program will be absorbed in the current operating outlook and are not expected to have any material effect on 2005 anticipated results.
As stated in the Q2-report of 2005, the company expects a significant profit improvement towards the end of the year.
For further comments, please contact:
CEO -- Tony Sturrus, phone +46 410-36 31 00,
E-mail: tony.sturrus@pergo.com
CFO -- Staffan Soderqvist, phone +46 410-36 31 00,
E-mail: staffan.soderqvist@pergo.com
Communications manager -- Asa Ruhr, phone +46 410-36 31 00,
mobile: +46 705-59 55 79, E-mail: asa.ruhr@pergo.com
Pergo is a leading flooring company with leading market positions, particularly in Europe and the U.S. Net sales amount to approx. SEK 2,8 billion and the number of employees is around 800. Pergo developed laminate flooring at the end of the 1970's and launched the product in Europe during the 1980s. The company started sales in the U.S. in 1994 and later also in Asia 1995 and Latin America 1997. The company's products have been marketed under the PERGO(r) brand name since 1989. The company is listed on the Stockholm Stock Exchange's O-list. For further information about Pergo, please visit our website www.pergo.com.
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