The Swedish Printing Plant of Schibsted is sold and about half of the employees will keep their job.
Schibsted has previously decided to sell or close down Tidningstryckarna in Sweden, as the required investments are difficult to justify financially. Today, an agreement has been entered into to sell Tidningstryckarna in Sweden to the group JMS Mediasystem. The disposal secures about half of the man-years which have been important for Schibsted when the alternatives of selling or closing down of the printing plant have been investigated.
The move of the production gives strategic advantages such as improved color possibilities, improved production flexibility and reduced capital binding. The transfer of the production during the summer will give yearly savings of SEK 60-70 million. The economic consequences are in line with what Schibsted reported in the Preliminary Annual Statement 2004. However, the costs in connection with downsizing amounts to SEK 80-90 million (previous estimate SEK 80-110 million) that will be charged to the accounts during the first half of 2005. Total net cash outlays in 2005 due to the move, downsizing and sale will be SEK 20-30 million (previous estimate SEK 50 million).
For further information please contact:
CFO Trond Berger, tel +47 9168 6695
Oslo, 18 February 2005
VP Investor Relations