Utenos Trikotazas AB - Notification on material event

AB ,,Utenos trikotažas” results of activity for 2008 m. IV quarter and year.

AB “Utenos trikotažas” posted the unaudited results of the activities for the
year 2008: the unaudited consolidated sales amount to 110.7 million Litas, i.e.
24.2 per cent less in comparison to the year of 2007. The unaudited
consolidated loss was 18.6 million Litas, from which 8.4 million Litas was
incurred due to the devaluation of Ukraine currency and because of this an
asset of subsidiary located in Ukraine was recalculated. 
AB “Utenos trikotažas” sales were 94 million Litas in 2008 year, i.e. 22 per
cent less in comparison to the year of 2007. Net loss was 6.2 million Litas and
the profit before interest, taxes, depreciation and amortization (EBITDA) was
2.5 million Litas. 
According to Managing director Nerijus Vilunas, 2008 year was not successful
for Europe an clothing retailers, and that influenced the fall of sales by
third, especially in the second quarter of 2008 year. Reacting to changing
situation in the market, we successfully realized the cost saving plan:
indirect and operating cost was decreased by 30 per cent. Number opf  Company
employees' decreased by 159 during 2008 year and in the end of 2008 year was
842, In the Ukraine subsidiary number of employees' decreased by 208 and in the
end of 2008 year was 492. The relevant drop in sales, one-time expenditure
concerned with decrease of employees' number determined 6.2 million Litas
Company loss, the major part was incurred during the first half of the year. 
1.5 million Litas were paid as redundancy pay only. Despite of net negative
result, Company pursued the financial liabilities in time and decreased the
liabilities for financial institutions during 2008 year by 12.8 million Litas. 
Despite of struggling clothing retail market, the sales of eco-products were
increasing continuously. Company maintained long-term relations with its key
accounts such as H&M, KappAhl  and some others. 
For more information please contact Mr.Nerijus Vilūnas, Managing Director of AB
Utenos trikotažas, tel. No. 8 389 51445