18 February 2000

Kverneland blow

ALL is not well for the Kverneland Group, it seems.

According to a financial statement issued by the company, net profit in 1999 was "less than satisfactory".

Difficult marketing conditions in that year reduced group turnover by 7%, which caused the company to issue a profits warning in November.

Key problem areas identified are substantial difficulties implementing an extensive IT project, operating losses in the groups Weilheim and Kerteminde production companies, and a severe fall in profits at Klepp and Soest (Accord).

Kverneland Group has now set about improving product control and has strengthened its resources in respect of finance, acquisitions and management.

Even so, an expected further reduction in product demand this year, and the need for further restructuring, will mean profit targets will not be achieved, says Kverneland. But profits will be up on 1999s performance.