Componenta - Company Announcement

Componenta to expand the Group’s efficiency program with a target to improve profitability at least by EUR 10 million

Componenta Corporation   Stock Exchange Release 8.12.2014 at 16.00

Componenta will continue the current efficiency improvement program to boost
productivity and profitability with new efficiency measures targeting to
enhance competitiveness and reduce costs at least by EUR 10 million by 2016.
The targeted result improvements of EUR 35 million coming from the earlier
efficiency programs are estimated to be achieved in full during the year 2015. 

Through boosting efficiency in the production operations and common functions
Componenta is targeting to increase capacity utilization rates of the foundries
and decrease fixed costs. 

The impact of the cost saving measures of developing and concetrating foundry
operations is estimated to be at least EUR 6 million by the year 2016. The
company will concentrate the foundry production by closing down 2 - 3 casting
lines during the years 2015 - 2016. 

The efficiency increase in the Group's internal processes and ways of working
is aiming at savings of EUR 4 million by the end of 2016, and a major part of
the savings will realize already during the year 2015. The possible impact on
personnel will be aimed at all countries where Componenta has operations and
will be carried out by retirement arrangements and by terminating employments. 

The decided measures will cause one-time items of EUR 2 - 3 million which are
intended to be booked in this year's financial statements. The final decision
about the number of the production lines to be closed down is planned to be
made during the first quarter of the next year. The decision may increase the
amount of savings and one-time items. 

Part of the targeted cost savings of EUR 10 million in this third phase of the
efficiency program will realize already in 2015 and rest in 2016. 

Helsinki, 8 December 2014

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO



For further information, please contact:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200

Mika Hassinen
CFO
tel. +358 10 403 2723



Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 511 million in 2013 and its share is listed on
Nasdaq Helsinki. The Group employs approx. 4,400 people. Componenta specializes
in supplying cast and machined components and total solutions made of them to
its global customers, who are manufacturers of vehicles, machines and
equipment.

Attachments:

release 08122014_Componenta to expand efficiency program.pdf