Product category:
Manufacturing orders, contracts, financial reports
News Release from: Karolin Machine Tool AB
Edited by the Manufacturingtalk Editorial
Team on 28 May 2007
Precision grinding machine business
reviewed
Facing an operating profit decline of 76%, during 2006 and a 25% decline in forward orders, Swedish precision grinding machine manufacturer is reviewing strategies and contemplating redundancies.
KMT has initiated codetermination talks regarding a reduction of the workforce by 80 persons, out of a total of 380 employees, in the KMT Precision Grinding business area, which will mainly affect employees of the subsidiaries KMT Lidkoping and KMT UVA The aim is for the codetermination talks to be concluded during the first half of 2007
This article was originally published on Manufacturingtalk on 26 Sep 2005 at 8.00am (UK)
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The earnings trend for the KMT Precision Grinding business area was unsatisfactory in 2006.
Order bookings declined by 25%, while sales remained largely unchanged.
Operating profit declined by 76%.
KMT earlier announced that measures would be implemented to address the inadequate profitability within the business area and to adapt the workforce to the prevailing market situation.
The net effect on net profit for the year will be reported at a later date.
Lars Bergstrom, president and CEO, commented: "For a long time, the situation within KMT Precision Grinding has been unsatisfactory, with both declining profitability and reduced order bookings.
We are now implementing these measures to raise profitability within the business area and thereby secure KMT's future competitiveness.
At the same time, I want to emphasize that we increased the workforce in the business area in both India and China in the past year and this will continue in 2007 and 2008.
We also have a distinct growth strategy within KMT Precision Grinding." The KMT Precision Grinding business area is one of the leading global players in machines, equipment and service of precision grinding for the bearing and automotive industries.
Five units at KMT work with precision grinding and related activities.
KMT Lidkoping and KMT UVA are the largest operations.
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