BERU AG
BERU AG: BERU streamlines its organization and accelerates cost-cutting activities
BERU AG / Miscellaneous Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- BERU streamlines its organization and accelerates cost-cutting activities - Program approved for enhanced efficiency - Executive Board reduced from 4 to 3 members - A more streamlined organizational structure - Savings of EUR 20 million targeted Ludwigsburg, December 13, 2007. The Executive Board of BERU AG today approved a program designed to enhance efficiency and improve competitiveness. Increasing pressure on prices, especially in the Diesel Cold-Start Technology division, and rising material and personnel expenses had recently led to a significant decline in earnings. In combination with this year’s weak revenue growth and the low growth rates also expected in 2008, appropriate cost-cutting measures have now been decided upon. These measures include the streamlining of the organizational structure and the optimization of worldwide production capacities in order to make internal processes faster and more efficient and to place more priority on close contacts with customers. Dr. Rainer Podeswa, hitherto the member of BERU’s Executive Board responsible for sales and research and development, has left the company by mutual agreement. His former responsibilities will be reallocated. Furthermore, throughout the BERU Group, approximately 160 jobs are scheduled to be eliminated, approximately half of them at the four German sites. The job reductions are to be carried out as far as possible in a socially acceptable manner; a charge of approximately EUR 3 million has therefore been budgeted for severance settlements. In 2008, BERU anticipates additional savings of approximately EUR 2.2 million, while savings of nearly EUR 5 million per annum are to be realized in the medium term. In connection with the revenue growth anticipated as of 2009 due to the launch of new products, the Executive Board assumes that the measures now initiated will stop the negative development of profit margins and have a sustained positive effect on competitiveness so that jobs can be secured in the long term. The Executive Board 13.12.2007 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: BERU AG Mörikestr. 155 71636 Ludwigsburg Deutschland Phone: +49 (0)7141 132-948 Fax: +49 (0)7141 132-586 E-mail: investor-relations@beru.de Internet: www.beru.de ISIN: DE0005072102 WKN: 507210 Listed: Regulierter Markt in Frankfurt (General Standard), Stuttgart; Freiverkehr in Berlin, München, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------
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