Alfa Laval to launch a cost reduction program
The first quarter of 2020 has begun in line with the plans of Alfa Laval, with invoicing and order intake at about the same pace as last year during January and February, the company said in its report.
The company believes that the effect of the first quarter on its financial results is limited.
Despite the recent COVID-19 outbreak and an increasing number of lock-down countries, adverse effects are likely to persist in the global economy. In this context, the organization has agreed to introduce a cost reduction plan over the next few quarters to proactively resolve the anticipated weaker conditions.
The program is expected to begin having an effect from April 1 and to slowly achieve fixed cost savings of more than SEK 1 billion on a rolling basis of twelve months. It contains several main components; programs to minimize work time, actively reduce travel expenses, other discretionary expenditures, and external consultants by placing programs on hold.
The software is expected to be implemented quickly and entirely without restructuring fees. The market situation will be constantly tracked, with a new cost reduction plan review planned for the third quarter.
Maritime Business World