Listing prospectus for YIT’s EUR 100 million secured green notes is available and the amendments to the terms of EUR 100 million green notes 2026 have become effective
STOCK EXCHANGE RELEASE JAN. 14, 2004 13:00
ACTION PROGRAMME TO IMPROVE THE PROFITABILITY OF YIT BUILDING SYSTEMS SWEDEN PROGRESSES
At the beginning of October, YIT started up an action programme to pull the Building Systems business acquired in Sweden into the black from 2004 onwards. The main aspects of the action programme are focusing on the core business, reducing fixed costs and downscaling operations to match demand in loss-making areas.
The action programme has progressed as planned and the payroll was cut by a total of 320 people. The personnel reductions have been carried out through pension solutions, employment termination and the sale of business functions. The Total Technical Solutions consulting business was sold to the operational management and, in accordance with an agreement signed with Flextronics, the Telecom functions will be transferred to Flextronics on February 2, 2004.
The sales of business functions involve a total of 75 people. It is estimated that the companys payroll will amount to about 2,450 employees at the end of 2004.
As YIT Building Systems has tightened its focus on its core business, its organization was overhauled. The companys services and functions are divided into three groups, which are Electricity, Air-conditioning and Facilities Management.
Personnel downscaling has led to a significant reduction in fixed costs, and operations in some loss-making areas have been terminated. The downscaling expenses, amounting to about EUR 10 million, were incurred in 2003. Other measures to reduce fixed costs will be continued, for example in the case of IT and business premises.
The measures aim to achieve cost-savings totalling about EUR 20 million per year. The measures will begin to have a partial influence on earnings in 2004, coming into full effect in 2005.
YIT will continue to make active outlays on the development of operations in Sweden with the aim of achieving market leadership in the field.
This action programme does not pertain to YITs Swedish subsidiary YIT Calor AB, which has about 1,550 employees.
YIT CORPORATION
Veikko Myllyperkiö Vice President, Corporate Communications
For additional information, contact: Juhani Pitkäkoski, President, YIT Building Systems Oy, tel. +358 20 433 3738, juhani.pitkakoski@yit.fi Sakari Toikkanen, Vice President, YIT Building Systems Oy, tel.
+358 20 433 2336, sakari.toikkanen@yit.fi Kari Kallio, President, YIT Building Systems AB, tel. +46 70 595 3219, kari.kallio@yit.se
DISTRIBUTION: Helsinki Exchanges, principal media, www.yit.fi