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2009-02-09 12:15:00 CET 2009-02-09 12:15:01 CET REGULATED INFORMATION Tiimari Oyj Abp - Company AnnouncementTHE NET PROFIT FOR TIIMARI GROUP IN 2008 IS EXPECTED TO BE NEGATIVETiimari Plc Stock Exchange Release February 09, 2009 at 13.15 THE NET PROFIT FOR TIIMARI GROUP IN 2008 IS EXPECTED TO BE NEGATIVE Tiimari estimates that its profit for the last quarter in 2008 will not cover the losses made during the three first quarters and therefore the net profit for the whole year will be negative. The increased cost levels due to inflation in salaries and leases, the non-recurring costs caused by closing down production in Kokkola, in-sourcing of the economy function and integration of Gallerix activities on top of the heavy investments in developing international activities have increased the cost levels. Nor did the Christmas sales reach the set targets with the general retail sales developing poorly towards the end of the year. Tiimari Group has launched an eight million euro annual performance improvement programme. Most of the savings will be realized during 2009. The programme includes amongst others savings in working hours in shops, closing down of activities in Russia and Norway and increasing the sales margin levels and improving efficiency in logistics. The working hours in shops will be adjusted by decreasing hired personnel. Closing down of the Russian and Norwegian activities will result in some non-recurring asset write-offs and there will be no major negative cash-flow effects. Tiimari Plc Kristina Illi CEO Further information: CEO Kristina Illi tel. + 358 (0)400 408 889 Tiimari Plc is a listed company. The group consists of three retail shop concepts: Tiimari, Gallerix and Paperazzi. These three concepts do business in eight countries within the Baltic Sea region and there are altogether nearly 300 shops. All three concepts belong to the forerunners of their market segment. In the corporation there is also a company called Tiimore Oy which specialises in corporate gifts and sales promotion solutions. |
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