The ÅF Group will be reorganised into three strategic divisions with effect from 1 January 2005, as previously announced. These divisions will be known as Infrastructure, Process and Systems. The Group's earnings from its consulting business have - with the sole exception of the Systems Division (IT & Product Development) - continued to develop in a positive direction during the fourth quarter.

 

Profitability has, however, continued to be something of a problem in the Systems Division. Capacity utilisation has remained low and prices continue to be subject to a certain degree of pressure. Reductions in the value of customer projects have also had a negative effect on the result for Systems.

 

Against this background a decision has been made to implement far-reaching savings. In accordance with Swedish labour law, the ÅF Group has commenced co-determination negotiations with the intention of reducing the fixed costs for Systems by approximately SEK 3 million a month. The cost for implementing these measures has been estimated to approximately SEK 15 million.

 

The financial result for the Systems Division will be poorer than anticipated, corresponding to a loss for the quarter (including the costs incurred by the measures announced above) of up to SEK 30 million. This means that the ÅF Group as a whole will not show a profit for the fourth quarter.

 

AB Ångpanneföreningen, Corporate Information