Uponor Corporation Investor news 5 May 2021 07:50 EET
Uponor updates the savings target and schedule of its operational excellence programme
Uponor communicated in its financial statements bulletin on 11 February that its operational excellence programme is progressing as planned and has yielded, as scheduled, its first results during 2020.
“We are satisfied with the progress of the programme and expect that we will reach the original €20 million target of annual savings by the end of this year as planned. At the same time, we want to utilise the full savings potential identified during the planning and implementation of the programme and therefore extend the duration of the programme until the end of the first half of 2022 to generate €25 million annual savings in total,” comments Jyri Luomakoski, President and CEO, Uponor Corporation.
The main initiatives of the operational excellence programme relate to Building Solutions – Europe segment and Group functions and aim to improve efficiency through reducing complexity and overlapping tasks as well as harmonising processes. Uponor extends the schedule of the programme until the end of the first half of 2022 and raises the savings target to €25 million. One-time costs of the full programme are estimated to be around €22 million, of which €11.8 million was already expensed in the end of 2020. The costs are recorded as items affecting comparability.
Uponor announced its operational excellence programme originally on 25 October 2019. The earlier target of the programme was €20 million annual cost savings by the end of 2021. The one-time costs of the programme were estimated to be around €20 million.
Uponor continues to follow the progress of the programme in its interim reports.
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Uponor in brief
Uponor is rethinking water for future generations. Our offering, including safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure, enables a more sustainable living environment. We help our customers in residential and commercial construction, municipalities and utilities, as well as different industries to work faster and smarter. Uponor employs about 3,700 professionals in 26 countries in Europe and North America. In 2020, Uponor's net sales totalled approximately €1.1 billion. Uponor Corporation is based in Finland and listed on Nasdaq Helsinki. www.uponorgroup.com