Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Finnish fireplace manufacturer Tulikivi has started personnel negotiations and is planning to cut some 120 jobs. The company will also have to introduce lay-offs among its personnel during the current year.
The rapid contraction in demand in late 2008 has adversely affected the company's order books and no improvement is anticipated in the coming months, especially in the domestic market. The company's Board of Directors has decided to launch a programme to improve the profitability of Tulikivi Corporation's operations and to introduce concentration measures in order to secure the company's profitability in the future. The programme is intended to achieve annual savings of approximately EUR 5 million in future years.
The programme will concentrate operations in the fireplaces and lining stone businesses and in Group administration, and product groups with poor profitability will be discontinued.
Tulikivi Corporation's 2008 sales are expected to total EUR 66 million (EUR 69.9 million in 2007) and its estimated profit before taxes approximately EUR 2 million (EUR 0.2 million) after impairment. Cash flow from operating activities before investments is expected to be more than EUR 7.0 million (EUR 2.5 million).
It is estimated that the programme will give rise to approximately EUR 2 million in non-recurring costs.
Tulikivi Group revenue amounts to approximately EUR 70 million, about half of which is accounted for by exports. The Group owns six production plants and employs roughly 600 people.
Eurofound (2009), Tulikivi, Internal restructuring in Finland, factsheet number 68330, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/68330.