HONKARAKENNE OYJ Stock Exchange Release 11 January 2010 at 11:00 hours HONKARAKENNE LAUNCHES AN EXTENSIVE PROGRAMME TO BOOST EARNINGS, DELIVERY VOLUMES HAVE GROWN Honkarakenne Oyj is launching an extensive programme to boost earnings, with the aim of securing a positive result in 2010. The full impact of the programme will be apparent from 2011. It is anticipated that around three quarters of the improved result will be attributable to savings made in fixed and variable costs in the different business areas and the rest will be achieved through streamlining corporate structures in 2010. The improvement programme will target cost items amounting to around 8 million euros. Most of the improvement measures targeting the business areas should be completed in 2010, and the effects are expected to improve the result this year by around 5 million euros. The non-recurring cost items involved in the programme, which will be recorded in the current year's accounts, may be significant. "Developing the company's operational effectiveness is a key factor in securing its long-term success. Developing sales and marketing processes, improving the network of importers and distributors and developing the design and architecture of company's products will also be the focus of attention. Honkarakenne will focus on premium segments in selected markets and further develop its customer-oriented service model”, says CEO of Honkarakenne Oyj, Esa Rautalinko. It is estimated that the recession, which has had a particularly detrimental effect on the construction sector, bottomed out during autumn 2009. The last quarter of 2009 saw an increase of 22% on the corresponding 2008 figure in Honkarakenne's euro-denominated orderbook for the New Year. The orderbook for the first quarter of the current year is 10% down on last year's corresponding period. However, the orderbook for the second quarter of the current year is 57% higher than the previous year's figure. The aggregate growth in the orderbook for the first two quarters of the year is 13%. Despite the positive development in orders, the markets remain volatile, and it is difficult to predict the real achieved sales in the respective quarters. Competition in the sector remains fierce, and Honkarakenne will be initiating codetermination negotiations for all its Finnish personnel, in order to improve operational efficiency. The negotiations may lead to lay-offs and dismissals. On 31 December 2009, the company's Finnish employees numbered 305. Lay-offs lasting no more than six weeks have been agreed for the period 1.1.-31.3.2010. HONKARAKENNE OYJ Board of Directors Additional information: President and CEO Esa Rautalinko, tel. +358 (0)400 740 997 esa.rautalinko@honka.com. DISTRIBUTION OMX Helsinki Key media Financial Supervisory Authority www.honka.com
HONKARAKENNE LAUNCHES AN EXTENSIVE PROGRAMME TO BOOST EARNINGS, DELIVERY VOLUMES HAVE GROWN
| Source: Honkarakenne Oyj