Wolford expects its restructuring plan to save 10 million euros
In view of the continuing negative revenue development in the financial year 2018/19, which has witnessed a decline of 9 percent between May 2018 to February 2019, the management board of Wolford Ag has initiated comprehensive restructuring measures with sustainable cost saving potential to bring the company’s cost structure in line with the revenues.
The company said in a statement that the expected savings potential exceeds 10 million euros. To achieve its targets, the company plans to strengthen sales activities, particularly in Asia. Wolford is also in negotiations with the financing banks to ensure the funds available to service the liquidity needs. Wolford plans to return to profitability (positive operating result) in the financial year 2020/21.
Issuing a profit warning in January this year, Wolford had announced that it does not expect the company to achieve positive operating earnings (EBIT) in the current 2018/19 financial year.