| 2015-06-01 |    |
More Austerity Measures for Kongskilde
Machine manufacturer takes the consequence of the declining international market for agricultural machinery, accelerates planned savings and contemplates lay-offs.
Kongskilde Industries A/S is now aggressively accelerating the ongoing turn-around process with redundancies and cost saving measures in order to make the DLG Group-owned machine manufacturer profitable and ready for a sale.
Kongskilde Vibro Flex
The company has laid off 22 employees in Denmark and contemplates making approx. 80 further redundancies in Sønderborg, Denmark, mostly amongst hourly employees. The relevant employees have been informed of the contemplated redundancies in accordance to current legislation. In addition, there will be adjustments to a number of Kongskilde product lines that were planned for the second half of 2015 and in the 2016.
"The contemplated layoffs are scheduled and normal for the season but we also take the consequence of the declining global market, and we have thus been able to adjust further at this stage," says Kongskilde CEO Ole Gade.
The agricultural machinery market has fallen significantly in recent months, and sales in the global market has fallen by over 20 per cent over last year - a situation that has affected all global machinery manufacturers.
"We have come far enough in the turn-around process at Kongskilde so as to be able to see where other planned measures as well as adjustments of Kongskilde’s product lines can advantageously be put into action at this stage," says Ole Gade.
The market situation has not shaken DLG's determination to make Kongskilde profitable within a few years and prepare the company for a sale.
"We have previously communicated that Kongskilde has to be profitable in 2016, and this remains our expectation," says Lars Sorensen, Chairman of Kongskilde and Deputy CEO and CFO of the DLG Group.
"Kongskilde has a strong brand with products of an international standard as well as strong competences. But Kongskilde does not fit DLG's product portfolio, and for the company to reach its full potential we need a strong partner or buyer that can drive the business forward, "says Lars Sorensen.
