Teligent undertakes efficiency measures

Teligent AB will undertake a restructuring aimed at improving the efficiency of the new group in which Trio AB is now included. This restructuring will be implemented as a part of the work in integrating the two companies in order to improve the profitability and competitiveness of the new group, and is also implemented against the background of the second quarter results, which will not meet previously forecasted expectations. The expected increase in new orders has taken place at a later stage, which will impact both the total level of orders and income reported for the quarter. As previously, no forecast for the entire year is provided.

The efficiency measures will be implemented during the second half of the year and are expected to impact earnings in an amount of MSEK 60 on a rolling annual basis. MSEK 40 of this amount refers to cost reductions in which the major portion is comprised of cutbacks relating to suppliers. At the same time, co-determination negotiations under the Employment Act will be initiated regarding a reorganisation and possible reduction of the company's own personnel. The efficiency measures are expected to show full impact on results in 2007.