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BRIEF-Trelleborg restructures in oil & gas amid challening market
November 28, 2017 / 2:14 PM / 16 days ago

BRIEF-Trelleborg restructures in oil & gas amid challening market

Nov 28 (Reuters) - Trelleborg AB:

* TRELLEBORG TO CONSOLIDATE AND ADAPT OPERATIONS IN OIL & GAS

* SAYS ‍IMPLEMENTS A NUMBER OF STRATEGIC MEASURES TO SECURE TRELLEBORG‘S LEADING POSITION AND COMPETITIVENESS IN OFFSHORE OIL & GAS SEGMENT, WHOSE MARKET CONDITION HAS BEEN CHALLENGING FOR A LONG TIME AND STILL IS​

* SAYS ‍HAS DECIDED TO GRADUALLY DISCONTINUE MANUFACTURING OF SUBSEA BUOYS FOR DRILLING EQUIPMENT IN DEEP-WATER ENVIRONMENTS IN HOUSTON, TEXAS,​

* SAYS ‍RESTRUCTURING COSTS RELATED TO TRELLEBORG OFFSHORE & CONSTRUCTION BUSINESS AREA WILL BE RECOGNIZED AS AN EXPENSE IN Q4 OF 2017 AMOUNTING TO ABOUT SEK 580 M​

* SAYS ‍WILL BE RECOGNIZED AS AN ITEM AFFECTING COMPARABILITY​

* SAYS ‍AMOUNT CONSISTS OF SEK 350 M ATTRIBUTABLE TO IMPAIRMENT OF INTANGIBLE ASSETS, SEK 70 M ATTRIBUTABLE TO IMPAIRMENT OF OPERATING ASSETS, AND SEK 160 M IN OTHER RESTRUCTURING COSTS​

* SAYS ‍TOTAL IMPAIRMENT LOSSES OF SEK 420 M WILL NOT IMPACT CASH FLOW​

* SAYS ‍CHANGES ARE EXPECTED TO IMPROVE EARNINGS FOR OPERATIONS CONCERNED BY APPROXIMATELY SEK 100 M PER YEAR UNDER PREVAILING MARKET CONDITIONS​

* SAYS ‍AT SAME TIME AS ADAPTED STRUCTURE IS EXPECTED TO CONTRIBUTE TOWARD FURTHER EARNINGS IMPROVEMENTS WHEN MARKET RECOVERS​ Source text for Eikon: Further company coverage: (Stockholm Newsroom)

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