Ruukki Group Plc, Stock Exchange Release, 26 September 2008 at 9:07 a.m.
Ruukki Group's Furniture Business segment (Incap Furniture) has decided to start
co-determination negotiations related to all of its employees due to financial
and production-related reasons. It is possible that over ten employees are laid
off, temporarily or for the time being, or dismissed or that some factory will
be closed down.
The 2009 sales to its main customer are estimated to reach not more than about
half of the corresponding revenue forecast for financial year 2008. The expected
decline in revenue is based on global consumer markets demand outlook and too
weak cost competitiveness of the segment.
Incap Furniture is currently evaluating the situation, its ramifications and
needed further action in more detail. Already previously during the current year
the furniture factory in Siikajoki was closed, and employees have been dismissed
via the co-determination processes in addition to other procedures carried out
to make the operations more efficient.
It has also been decided that the Lego product line will be discontinued with
immediate effect, since it has generated losses.
The third quarter 2008 net income of the Furniture Business segment will be
negative. There is also risk, in case production capacity would be closed or
scaled down or in case some other business or operational adjustments would be
decided upon, that Ruukki Group will recognise in 2008 additional impairment
losses related to the Furniture Business.
RUUKKI GROUP PLC
ALWYN SMIT
CHAIRMAN AND CEO
Ruukki Group Plc's shares are listed on OMX Nordic Exchange Helsinki in which
the shares of the Company are traded in the mid cap segment, in the industrials
sector.
For additional information, please contact:
Alwyn Smit
Chairman of the Board
Ruukki Group Plc
Telephone +358 50 442 1663 / +41 7960 19094
www.ruukkigroup.fi
Antti Kivimaa
Deputy CEO, Finnish Businesses
Ruukki Group Plc
Telephone +358 400 501 780
www.ruukkigroup.fi
Veli Torvinen
Managing Director
Incap Furniture Oy
Telephone + 358 40 551 0665
www.incapfurniture.fi
This stock exchange release is based on a translation into English of a document
written in Finnish. In case of any discrepancies, inconsistencies or
inaccuracies, the Finnish version of the release shall prevail.
RUUKKI GROUP'S FURNITURE BUSINESS SEGMENT OPERATIONS TO BE ADJUSTED TO MEET DEMAND
| Source: Afarak Group Plc