Kesko's profitability programme is progressing

KESKO CORPORATION STOCK EXCHANGE RELEASE 24.09.2012 AT 12.00 1(1) The Kesko Group is enhancing its operations as a result of the weakening general economic situation, tightened competition and an increase in the level of costs. In order to improve its price competitiveness and profitability, Kesko's objective is to achieve cost savings of EUR100 million. Most of the savings are expected to be achieved in 2013...

KESKO CORPORATION STOCK EXCHANGE RELEASE 24.09.2012 AT 12.00 1(1)

 

The Kesko Group is enhancing its operations as a result of the weakening general economic situation, tightened competition and an increase in the level of costs. In order to improve its price competitiveness and profitability, Kesko's objective is to achieve cost savings of EUR100 million. Most of the savings are expected to be achieved in 2013.

 

As announced earlier, the profitability programme covers all of Kesko's divisions. The aim is to reduce especially marketing, personnel, rent and information system expenses. In order to reduce personnel expenses, company specific cooperation negotiations will be begun.

 

As part of reducing personnel expenses, cooperation negotiations have been begun in Anttila, K-citymarket home and speciality goods, Kesko Food and Konekesko. These negotiations cover a total of some 3,000 people, and the maximum reduction need is estimated at 370 person-years. The estimated reductions also include possible retirement arrangements. The above cooperation negotiations do not cover K-food stores or K-citymarket department stores.

 

In its interim report for January-June 2012 (stock exchange release on 25 July 2012), Kesko said that the divisions had taken measures to enhance sales and purchasing operations and had begun to adjust costs, working capital and capital expenditure in order to ensure earnings and return on capital. Due to the uncertainty of the general economic outlook, capital expenditure will also be aligned with funds generated from operations to EUR200-300 million per year.

 

Further information:
President Matti Halmesmäki, tel. +358 1053 22201
Senior Vice President, home and speciality goods trade, Minna Kurunsaari, tel. +358 1053 22261
Kesko Food President Terho Kalliokoski, tel. +358 1053 22204

 

 

Kesko Corporation

 

 

 

Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility

 

 

DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi

 

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