Lantmännen: makes a big push to save 39 million EUR

Stockholm / SE. (lg) Lantmännen is currently making a big push to increase its profitability and invest for the future. For that Lantmännen´s executive management is presenting a new Group structure. The reorganisation is part of the programme which is intended to save 400 million Swedish Crowns (SEK) for the Group over a three-year period. Structural costs are estimated to range between 100 to 150 million SEK during 2009.

Lantmännen´s results have as a result of the recession been declining since the beginning of the year, and the July semi-annual report showed a loss of -196 million SEK (437 million SEK) after net financial items excluding items affecting comparability. Since the beginning of the year several major initiatives have been implemented in order to increase cost and capital efficiency and develop the organisation. After an analysis of the organisation, Lantmännen´s management has decided on a new Group structure, which will be effective on October 01.

«The new organisation is more logical from the customer´s perspective. It reflects the cutting-edge expertise that Lantmännen offers its customers, and it can take more advantage of the synergies and competencies between the different business areas», said President and CEO Per Strömberg.

Lantmännen´s new Group structure consists of four sectors. Arne Rantzow will head the Agriculture sector, Clas Eriksson the Machinery sector, Monika Lekander the Energy sector, while Per Strömberg will become the acting director of the Food sector.

Lantmännen will save 400 million SEK over a three-year period. An intensive project has been under way since January to create an action programme to achieve this savings. One of the measures is a layoff of approximately 400 professionals. The majority of the layoffs will take place in the fall of 2009, and they affect the entire organisation in all of the countries where Lantmännen has operations. It is estimated that structural costs will be between 100 an 150 million SEK during 2009.

«Unfortunately layoffs are necessary since we must free up resources to be able to invest in marketing and research and development, and to be able to strengthen Lantmännen´s profitability in the long term», said Strömberg.