Wielton reduces capacity and employment

opublikowano: 05-11-2008, 11:51

Warsaw (Puls Biznesu) – The trailer producer cuts down its sales forecast. It lays off workers in order to get ready for tough times.

Wielton, the producer of semi-trailers and trailers, expects PLN 390m (EUR 109.9m) of sales this year, or 27 percent less than it had forecast before. The revision is mainly due to weak euro.

“75 percent of our sales are generated by exports, we sell in euros even in Poland”, Wlodzimierz Maslowski, Wielton CEO explained.

The company has not changed its forecasts of EBITDA (PLN 67.2m), operating income (PLN 60.5m) and net income (PLN 50m).

“This year, we have seen the sector slowing down. Last year, the market had jumped 70 percent and two years ago – 40 percent. It’s hard to say what is going to happen in 2009”, Wlodzimierz Maslowski said.

The company wants to be prepared in case the market situation does not improve quickly. It will fire 200 people till the end of January. This is also partly due to earlier investments conducted by the company. Thanks to the lay offs, the company will save PLN 0.5m monthly.

“We have already fired 120 people. It has cost PLN 350,000”, Wlodzimierz Maslowski said.

In the third quarter, Wielton’s sales rose 2.8 percent to PLN 101.4m. The operating income dropped 31.4 percent to PLN 12m. Wielton had PLN 10.1m of net income, or 27.4 percent more than in the same period of 2007.

(PLN 1 = EUR 0.282)

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Podpis: MAG