Hexatronic downgrades short-term outlook and initiates a cost-saving program
November 21, 2023
Hexatronic downgrades short-term outlook and initiates a cost-saving program
Hexatronic Group AB (publ) (“Hexatronic” or “the Company”) downgrades its short-term outlook and expects that the EBITA margin, excluding restructuring costs, will amount to 12-14% for the second half of 2023. Furthermore, the Company is initiating a cost-saving program that is expected to result in annual savings of approximately SEK 90 million.
Hexatronic downgrades its short-term outlook due to a continued weakening of the market for fiber optic telecommunications infrastructure during the fourth quarter. The Company thus expects a deterioration in organic sales growth in the fourth quarter of 2023 compared to the third quarter of 2023. The EBITA margin, excluding restructuring costs, is expected to amount to 12-14% for the second half of 2023, compared to the previous expectation of 15-17%.
As a result of a weaker market, Hexatronic is initiating a cost-saving program involving an estimated 160 full and part-time positions. The program mainly relates to a reduction of production staff but also white-collar workers in Fiber Solutions in several of the Company's geographical markets. Starting from the end of the first quarter of 2024, the program is expected to generate annual cost savings of approximately SEK 90 million. Restructuring costs are expected to amount to approximately SEK 30 million that will impact the fourth quarter of 2023.
“The market within Fiber Solutions has continued to weaken during the fourth quarter, particularly the German market and the US duct market, leading us to downgrade our short-term outlook. We are therefore today announcing measures to adapt our organization to current market conditions”, says Henrik Larsson Lyon, CEO of Hexatronic.
Beyond current market conditions, the Company sees strong underlying structural trends supporting the expansion of fiber networks in our strategic markets including North America, the UK and Germany, primarily driven by privately financed projects but also with support from various government investment programs in most major markets. As communicated in the interim report for the third quarter of 2023, the Company expects government investment programs, combined with normalized inventory levels, to contribute to a gradual market recovery from the second half of 2024. Within Harsh Environment and Data Center, the Company continues to see robust market demand.
Gothenburg, November 21, 2023
Henrik Larsson Lyon
CEO Hexatronic Group
For more information, please contact:
Henrik Larsson Lyon, CEO Hexatronic Group, +46 706 50 34 00
Pernilla Lindén, CFO Hexatronic Group, +46 708 77 58 32
This is information that Hexatronic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 14:45 CET on November 21, 2023.
This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
Hexatronic creates sustainable networks all over the world. We partner with customers on four continents – from telecom operators to network owners – and offer leading, high-quality fiber technology for every conceivable application. Hexatronic Group (publ.) was founded in Sweden in 1993 and the Group is listed on Nasdaq OMX Stockholm. Our global brands include Viper, Stingray, Raptor, InOne, and Wistom®.
AttachmentTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
BioAegis Therapeutics Unveils Upcoming Clinical Study of Gelsolin, an Immune Regulator, as a Treatment for Patients with Acute Respiratory Distress Syndrome (ARDS)27.2.2024 21:52:04 CET | Press release
Large phase 2 global study will evaluate efficacy and safety of recombinant human plasma gelsolin (rhu-pGSN) for moderate-to-severe ARDS. NORTH BRUNSWICK, N.J., Feb. 27, 2024 (GLOBE NEWSWIRE) -- BioAegis Therapeutics, a pioneering biotech company at the forefront of innovative therapies for inflammatory diseases, is pleased to announce site recruitment for BTI-203, a Phase 2 study of recombinant human gelsolin (rhu-pGSN) for the treatment of Acute Respiratory Distress Syndrome (ARDS) (NCT05947955). The study, A Phase 2, Randomized, Double-blind, Placebo-controlled Study to Evaluate the Efficacy and Safety of Adjunctive Recombinant Human Plasma Gelsolin With Standard of Care for Moderate-to-Severe ARDS Due to Pneumonia or Other Infections is being conducted under a contract with BARDA’s Division of Research, Innovation, and Ventures (DRIVe), part of the Administration for Strategic Preparedness and Response within the U.S. Department of Health and Human Services. Approximately 80 sites
Transactions with shares and linked securities in Genmab A/S made by managerial employees and their closely associated persons27.2.2024 21:42:24 CET | Press release
Company Announcement COPENHAGEN, Denmark; February 27, 2024 –Genmab A/S (Nasdaq: GMAB) - In accordance with Article 19 of Regulation No. 596/2014 on Market Abuse and Implementing Regulation 2016/523, this document discloses the data of the transactions made in Genmab A/S (Nasdaq: GMAB) by managerial employees and their closely associated persons. The company’s managerial employees and their closely associated persons have given Genmab A/S power of attorney on their behalf to publish trading in Genmab shares by the company’s managerial employees and their closely associated persons. Please find below a statement of such trading in shares issued by Genmab A/S 1.Details of the person discharging managerial responsibilities / person closely associateda)NameAnthony Pagano2.Reason for the notificationa)Position/statusExecutive Vice President & Chief Financial Officerb)Initial notification/AmendmentInitial notification3.Details of the issuer, emission allowance market participant, auction pla
Capital Increase in Genmab as a Result of Employee Warrant Exercise27.2.2024 21:40:01 CET | Press release
Company Announcement COPENHAGEN, Denmark; February 27, 2024 –Genmab A/S (Nasdaq: GMAB) will increase its share capital by 48,429 shares as a consequence of the exercise of employee warrants. The increase is effected without any preemption rights for the existing shareholders of the company or others. The shares are subscribed in cash at the following price per share of nominally DKK 1: 7,325 shares at DKK 1,025.00, 19,631 shares at DKK 1,032.00, 2,473 shares at DKK 1,050.00, 1,422 shares at DKK 1,161.00, 40 shares at DKK 1,334.50, 1,036 shares at DKK 1,362.50, 6,660 shares at DKK 1,402.00, 129 shares at DKK 1,408.00, and 9,713 shares at DKK 1,615.00. Proceeds to the company are approximately DKK 58.7 million. The increase corresponds to approximately 0.07% of the company's share capital. The new shares are ordinary shares without any special rights and are freely transferable negotiable instruments. The new shares give rights to dividends and other rights in relation to the company as
Nova Klúbburinn hf. birtir uppgjör fjórða ársfjórðungs og ársins 202327.2.2024 18:43:15 CET | Press release
Sterkur vöxtur þjónustutekna skilar sér í hækkun EBITDA, auknum hagnaði og betra sjóðstreymi Helstu niðurstöður á fjórða ársfjórðungi: Heildartekjur voru 3.327 m.kr. á fjórða ársfjórðungi 2023 samanborið við 3.354 m.kr. á Á samanburðarári tekjufærði félagið einskiptislið að fjárhæð 39 m.kr. vegna sölu eigna, leiðrétt fyrir því er 0,05% tekjuvöxtur á milli áraÞjónustutekjur námu samtals 2.424 m.kr. og vaxa um 3,4% á milli ára EBITDA nam 961 m.kr. samanborið við 978 m.kr. á sama tímabili á fyrra ári, EBITDA hlutfallið var 28,9% á fjórðungnum samanborið við 29,2% á fyrra ári Hagnaður fjórða ársfjórðungs var 182 m.kr. og hækkar um 3,9%Handbært fé frá rekstri á fjórðungnum er 1.010 m.kr. samanborið við neikvætt 110 m.kr. á sama tímabili á fyrra ári Helstu niðurstöður ársins 2023: Heildartekjur voru 12.993 m.kr. á árinu 2023 samanborið við 12.641 m.kr. á árinu 2022 og vaxa um 2,8% milli áraÞjónustutekjur námu samtals 9.734 m.kr. og vaxa um 6,8% á milli ára EBITDA nam 3.979 m.kr. og hækkar um
Open Society Foundations’ Soros Economic Development Fund Commits $25 Million to Allied Climate Partners’ Climate Finance Partnership27.2.2024 18:41:57 CET | Press release
New York, Feb. 27, 2024 (GLOBE NEWSWIRE) -- The Soros Economic Development Fund (SEDF), the impact investment arm of the Open Society Foundations, is committing $25 million to Allied Climate Partners (ACP)—a new and innovative public-private partnership focused on increasing the number of bankable climate projects in emerging markets and developing economies around the world. ACP aims to address a critical financing gap at the early, risk-oriented stages of the development process. Without this support, many projects and businesses struggle to attract the necessary capital to achieve their climate-related goals. While early-stage project development represents the smallest portion of the overall funding needed for a project (approximately 5 percent), relatively few early-stage projects get financed due to risk. Even though 5 percent of the capital can unlock 95 percent, this early-stage capital is the hardest to raise for critical activities like technical and environmental assessments