Alno AG starts implementing 'Alno 2013'
ALNO AG / Restructure of Company/Strategic Company Decision
28.01.2010
Dissemination of a Corporate News, transmitted by
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* Clear market profile via unambiguous brand placing and streamlined range
* Uniform product and production platform Group-wide
* Relocation of manufacturing to cost-efficient locations
* Centralisation of administration
* Downsizing of approximately 250 jobs Group-wide
* Chief Executive Officer Jörg Deisel: 'Our target is a pre-tax margin of
five per cent from 2013 on'
Pfullendorf (Germany), 28 January 2010 - The Supervisory Board at Alno AG
agreed to the comprehensive 'Alno 2013' concept with which the established
kitchen manufacturer hopes to realign and comprehensively optimise its
structures and processes. Alno AG will now swiftly commence operative
implementation of the concept with the goal of improving the traditional
company's profitability and competitiveness over the long term.
The comprehensive structural changes form the focal point of introduction
of efficient administration processes and manufacturing structures
throughout the entire Group. By realigning the brand and sales strategy,
the strike capability of all Group brands is also to be strengthened at
international level.
Supervisory Board welcomes concept
The Supervisory Board including employee representatives and banks are
firmly behind the concept. Financing is already enjoying enormous support
on the part of the chief partners. Chief Executive Officer Jörg Deisel is
convinced that these restructuring measures are heading Alno AG in the
right direction towards more growth and profitability: 'Alno 2013 is a
sustainable concept displaying the right balance between cost-reduction and
growth measures, whereby we have examined in detail each element of the
value-added chain enabling optimum effectiveness by the individual
sub-projects. Although we have a tough task ahead of us, the Management
Board and Supervisory Board are convinced that we will master it
successfully. Everyone has acknowledged the fact that Alno 2013 is the best
solution.'
Some initial key milestones on the road towards past strengths were already
achieved in fiscal 2009: while the market as a whole displayed a slight
decline in October (-3.3%) over the previous year (source: VdDK Panel
Küchenindustrie), orders received by the Alno Group had risen by 1.2% as at
October 2009 when compared to the same period the year before. The Alno
Group succeeded in significantly increasing its market share by 4 per cent.
Milestones of the 'ALNO 2013' concept in detail:
Within the framework of an initial step, the Group's product and brand
strategy is to be realigned in 2010, whereby the existing Alno, Wellmann,
Impuls and Pino brands are to be revised in terms of range and brand image
and positioned more clearly in various price segments and sales channels
both in Germany and abroad. The brands are to be delineated more
significantly. An initial result is to be presented as early as April 2010
at the world's leading fair for kitchen furniture, the Eurocucina.
The planned transformation of the manufacturing processes involves
harmonising product and production standards as well as optimising
allocation and utilisation of resources. This will enable the Alno Group to
reduce complexity as regards products and production while further
improving cost structures by means of scaling effects in the areas of
Purchasing and Logistics. What's more, investments can also be made in a
more focused manner. The result is a technically and administratively
leaner manufacturing structure.
Future serial production with high piece numbers for the Alno and Wellmann
brands will be located in Enger (North Rhine-Westphalia) while Pfullendorf
(Baden-Wuerttemberg) will focus on selected special ranges (high-gloss
kitchens, for example). This process will be accompanied by the
transformation of Pfullendorf into a purely production location, including
supporting administrative functions which will incur the loss of around 450
jobs over the next four years. At the same time, approx. 200 new jobs will
be created in Enger with the result that almost 250 jobs will be struck
Group-wide by 2013 and utilisation of capacities at both locations
increased significantly. The number of employees will thus be reduced from
1,900 today to around 1,650 by the end of 2013.
The process of realigning sales in Germany is primarily aimed towards
strengthening the 'Kitchen specialists / Kitchen studios' sales channel for
the Alno and Wellmann brands as well as streamlining low-margin sales.
Sales abroad are to be boosted by project business and key-account
agreements in the retail market. As far as personnel is concerned, the
sales teams are to receive intensive training for more effective customer
support in Germany as well as Sales Channel Management abroad. The
introduction of new incentive systems for employees is also intended to
contribute towards achieving these corporate goals. What's more, commercial
controlling systems are to be improved in order to enable profit-oriented
steering of the sales structure.
Transformation of the administrative structure involves relocating the
Group holding to Düsseldorf and centralising all service areas, including
Customer Service, Accounting, Controlling, IT, Human Resources and Order
Entry. This will entail standardising and merging redundant structures and
processes currently prevailing at the four locations in Brilon (North
Rhine-Westphalia), Enger, Klieken (Saxony-Anhalt) and Pfullendorf while the
location of central administration remains to be specified.
'With Alno 2013, the Management Board and Supervisory Board have tied a
package which will stabilise the Group and get it back on its former track
of success. This will be to the benefit of our employees, customers,
suppliers and not least our shareholders, too', claims Chief Executive
Officer Jörg Deisel. 'Our goal is to achieve a pre-tax margin of five per
cent from 2013 on.'
About Alno AG:
Alno AG is one of the leading German manufacturers of kitchens. Four
production sites in Germany and one in Dubai serve both the domestic and
international markets with a full range of kitchen styles. In addition to
the core Alno brand, Wellmann (classic-modern style), Impuls (minimalistic
style) and Pino (entry range) all belong to the Alno Group. With
approximately 7000 distribution partners in more than 64 countries, Alno AG
is active across the world. In the financial year 2008 around 1900
employees achieved a turnover of around 511 Million Euros and an
operational result of 19.266 Million Euros (EBITDA). The share of turnover
generated from exports amounted to 33.7%.
Note to Editors:
If you would like additional information about Alno and its products,
please visit our Alno newsroom at http://www.alno.ag/182.0.html where you
will find print-ready images of key people and products.
Forward-looking Statement:
This press release may contain forward-looking statements based on current
assumptions and forecasts made by the management of Alno AG or its
affiliated companies. Various known and unknown risks, uncertainties and
other factors could lead to material differences between the actual
results, financial situation, development or performance of Alno AG and its
affiliated companies and the estimates given here. Neither Alno AG nor its
affiliated companies assume any liability whatsoever, to update these
forward-looking statements or to conform them to future events or
developments.
ALNO AG
Director Corporate Communications & Investor Relations
Andrea Wolf
88629 Pfullendorf
Phone: +49 / 75 52 / 21 - 33 16
Fax: +49 / 75 52 / 21 - 77 3316
EMail: Andrea.wolf@alno.de
28.01.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: ALNO AG
Heiligenberger Straße 47
88630 Pfullendorf
Deutschland
Phone: 07552-21-0
Fax: 07552-21-773316
E-mail: andrea.wolf@alno.de
Internet: www.alno.de
ISIN: DE0007788408
WKN: 778840
Listed: Regulierter Markt in Frankfurt (General Standard), Stuttgart;
Freiverkehr in Berlin, München, Düsseldorf
End of News DGAP News-Service
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