Metrology company, Hexagon, has reported a net sales increase of 7% of 13,168 MSEK for 2008. Operating earnings increased by 14 per cent to 2 405 MSEK and earnings per share increased by 10 per cent to 6.63 SEK. This is below the earlier outlook for the year of 15 per cent growth in earnings per share.
“December usually displays strong sales and represents approximately 25 per cent of Hexagon's earnings in a year,” said Ola Rollén, president and CEO of Hexagon AB. “The final weeks of 2008 were significantly weaker than expected. Customers closed down their entire operations rather than, as under normal circumstances, place late orders with deliveries before the year end.”
Due to the deteriorating demand situation, Hexagon has accelerated its cost reduction programme. Lay offs of personnel in combination with furlough (temporary leave of absence) during the first half of 2009 are expected to bring annualised savings of approximately 500 MSEK. These measures result in restructuring charges of approximately 100 MSEK in total in the fourth quarter 2008.
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