Operating profit was SEK -47 million ($7 million) including restructuring costs. The previously announced restructuring costs for 2013 were posted in their entirety in the period, amounting to SEK 60 million ($9 million). The restructuring costs, which primarily entail adjusting operations to lower demand, essentially affect the entire Group. No corresponding restructuring costs were posted during the corresponding period in 2012. The new cost-cutting program is expected to generate annual savings of about SEK 80 million ($12 million), of which approximately SEK 60 million ($9 million) will have an immediate impact in 2013.
Net financial items during the quarter totalled SEK -16 million ($2.4 million), earnings before tax were SEK -64 million ($9.7 million) and reported result after tax was SEK -47 million ($7 million).
“The weak economy in Europe, relatively few working days and the appreciation of the Swedish krona against other currencies all had a negative impact on sales and earnings on the 1Q,” says Bong’s President and CEO Anders Davidsson. “The extensive cost-cutting programme announced in the year-end report continues according to plan, and has largely already been carried out. The programme is expected to produce annual savings of about SEK 80 million ($12 million), of which approximately SEK 60 million ($9 million) will have an immediate impact in 2013.”
Bong is a leading provider of specialised packaging and envelope products in Europe, offering solutions for distribution and packaging of information, advertising materials and lightweight goods.