ElringKlinger implements cost-cutting plan

ERJ staff report (DS)

Dettingen, Germany -- ElringKlinger group is preparing for further contraction in demand by cutting temporary staff, implementing short-time working and halving capital expenditure.

The company announced the plan while revising downward its earnings expectations for the financial year 2008. The company said it expects 2008 sales to be about 9 percent up on the 2007 figure, and overall EBIT margins to be above 11 percent. This forecast reflects the relatively weak performance of its recent acquisitions -- SEVEX group and ElringKlinger Marusan

The company said it hopes to implement short-time working at its plants from 1 Feb. it is also reducing capital expenditure to under Euro 45 million, down from a planned Euro 90 million. The company said investments made for the purpose of company streamlining as well as expenses earmarked for research and development will remain unchanged.

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Press release from ElringKlinger