LASSILA & TIKANOJA PLC COMPANY ANNOUNCEMENT 15 JANUARY 2009 11.00 am
LASSILA & TIKANOJA RECOGNISES IMPAIRMENT LOSS FOR OPERATIONS IN SWEDEN.
GUIDANCE REMAINS UNCHANGED.
Lassila & Tikanoja recognises an impairment loss of EUR 2.7 million for the
goodwill of business operations in Sweden due to weaker market outlook. The
earnings guidance for 2008 remains unchanged.
The growth estimate for the business operations in Sweden has been reduced,
because market outlook has weakened due to the economic downturn and the
targets for new sales for 2008 were not reached. Goodwill was tested for
impairment in accordance with IAS 36 and, as a consequence, an impairment loss
of EUR 2.7 million will be recognised in the final quarter of 2008. The book
value of the goodwill of the Swedish operations was EUR 11.3 million at the end
of the year 2007. After the recognition of the impairment loss and the selling
of business operations in Norway, the goodwill book value amounts to EUR 7.8
million.
L&T started cleaning and office support service operations in Sweden in 2006,
and had in Norway only minor business operations included in a Swedish company
acquired in early 2007. The business operations in Norway were sold at the end
of the year 2008 with a loss of approximately one million euro.
The total effect of these non-recurring items on the full-year profit is around
EUR 3.7 million, but they do not affect the earnings guidance for 2008.
Lassila & Tikanoja plc's financial statements for the period 1 January - 31
December 2008 will be released on 10 February 2009 at 8.00 am.
LASSILA & TIKANOJA PLC
Jari Sarjo
President and CEO
For additional information please contact IR Manager Keijo Keränen, tel. +358
50 385 6957, or Sirkka Tuomola, Vice President and CFO, tel. +358 10 636 2883
Lassila & Tikanoja specialises in environmental management and property and
plant support services and is a leading supplier of wood-based biofuels,
recovered fuels and recycled raw materials. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 9,500 persons. Net sales in 2007 amounted to EUR
555 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com