Caverion to Launch Further Performance and Utilisation Improvement Actions in Sweden

HELSINKI, May 29, 2017

Caverion Corporation Investor news - May 29, 2017 at 9.00 a.m. EEST

Caverion is launching further actions to address the remaining utilisation and performance challenges in Sweden. These actions include reductions in workforce, combining of existing units, better usage of shared resources and integration of its Swedish industrial and building systems operations.

Overall, these actions are estimated to lead to personnel reductions affecting approximately 160 employees in Sweden.

In the integration of industrial and building systems operations all of approximately 350 employees from the Swedish industrial operations will be transferred to Division Sweden.

In February Caverion estimated that it has a potential further risk of up to EUR 10 million related to utilisation rate during 2017. The now announced performance and utilisation improvement actions are expected to amount to restructuring costs of approximately EUR 6.3 million. The estimated total savings impact of these actions is approximately EUR 2.7 million in 2017 and EUR 5.5 million in 2018.

"If necessary, we are ready to implement further cost savings during 2017. However, I see that the risk related to utilisation for the full year should not exceed the level identified in February," says Ari Lehtoranta, CEO and President of Caverion Corporation."