INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS
8 February 2011 - Norwegian IT group EDB ErgoGroup ASA (OSL:EDBASA) said today it slipped into a net loss of NOK72m (USD12m/EUR9m) from a year-earlier profit of NOK57m due to streamlining costs of NOK134m, despite revenue growth.
The non-recurring items included NOK67m related to the first phase of the synergy programme, started in December 2010 and aimed at strengthening the group's profitability. A provision of NOK67m was also booked for streamlining the firm's international office structure as a result of the discontinuation of services for aluminium major Norsk Hydro ASA (OSL:NHY) that represent annual revenue of NOK200m. The move will have an effect as of July 2011.
However, EDB ErgoGroup's fourth-quarter revenue nearly doubled to NOK3.363bn from NOK1.917bn last year, after seven quarters of declines. All the group's businesses reported organic growth, CEO Terje Mjos said.
Operating loss was NOK53m compared with a profit of NOK117m.
For the full 2010, the group also slipped into a net loss, of NOK209m, from a profit of NOK134m in 2009. The company's board of directors will propose that no dividend be paid for 2010.
The main focus in 2011 is to implement the company's synergy programme, EDB ErgoGroup said.
((Comments on this story may be sent to info@m2.com))
No comments:
Post a Comment