Structural measures and cost reductions in Lindab's operations
GREVIE, Sweden, Nov. 28, 2024 /PRNewswire/ -- Lindab is implementing structural measures and cost reductions, primarily within the ventilation business, in order to strengthen profitability and adjust the company's fixed costs. Actions include a reduction of 180 full-time positions and structural measures involving the closure of 10 sites for warehousing and local production.
In the interim report for the third quarter of 2024, Lindab announced that further measures will be implemented to increase margins. The structural measures and cost reductions that are now being implemented will reduce fixed costs and are expected to have a positive effect on margins in 2025. Fixed costs are reduced by a total of 120 MSEK on an annualised basis, of which 105 MSEK is linked to business area Ventilation Systems. From January 2025, an annual savings effect of 90 MSEK will be achieved, with the full effect to be realised by July 2025. The measures entail one-time costs of 70 MSEK, all of which will be recognised in the fourth quarter of 2024.
"These measures are important to reduce Lindab's fixed costs and increase profitability at a time of weak demand", says Ola Ringdahl, President and CEO of Lindab. "The changes are designed to have as little impact as possible on customers, and they do not affect our strong market position. At the same time, we continue to invest in competitive products, acquisitions and digitalisation."
Personnel reductions
A personnel cut is being implemented with the reduction of 180 full-time positions. Approximately two thirds of these employees are white-collar workers and one third blue-collar workers. 160 people work in business area Ventilation Systems and 20 people in business area Profile Systems. The measures entail one-time costs of 45 MSEK, all of which will be recognised in the fourth quarter of 2024.
Structural measures
Lindab is also implementing structural measures involving the closure of 10 sites for warehousing, stores and local production. Customers will be served from other Lindab units in neighbouring locations. The measures entail one-time costs of 25 MSEK, all of which will be recognised in the fourth quarter of 2024.
In October, it was announced that the production of building products for Profile Systems in the Czech Republic will close at the end of the year. The closure will affect some 30 employees working in production and warehousing. This is a first step in the structural transformation that Lindab is carrying out within business area Profile Systems, with a particular focus on Eastern Europe.
Contacts:
Ola Ringdahl
President and CEO
E-mail: ola.ringdahl@lindab.com
Phone: +46 (0) 431 850 00
Lars Ynner
CFO
E-mail: lars.ynner@lindab.com
Phone: +46 (0) 431 850 00
Fredrik Wahrolén
Head of Communications
E-mail: fredrik.wahrolen@lindab.com
Mobile: +46 (0) 705 393 379
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