LLL!

Die kann aber mal wer anders übersetzen, falls Bedarf.

Pressemeddelelse fra Lego(på engelsk)


Under overskriften "Results improve - but still not there yet" udsendte Lego følgende pressemeddelelse over middag.

Management change - Kjeld Kirk Kristiansen steps down from daily management, Jørgen Vig Knudstorp is new CEO.
LEGO Company has markedly improved its financial result in 2004: it expects the ordinary result before tax to be a loss of DKK 200 400m compared to a loss of DKK 900m in 2003. This result is realized against sales in 2004 likely to total DKK 8bn compared to DKK 8.4bn in 2003.

This means that LEGO Company believes it is unlikely to reach the break even point which was the target for 2004.

This is due, in particular, to the fact that the very important American market and the Japanese market have not yet demonstrated the positive progress expected at the start of the year. In addition, the general competitive situation in the toy market remains acute, which has increased pressure on prices.

Sales in Europe are also below last year's level in Danish currency terms - although this covers solid growth in South and East European markets combined with a generally stable development in the other markets. During the second half of the year a small proportion of European sales was adversely affected by supply problems involving the Company's best selling products - but this situation is expected to be brought under control during the coming weeks.

The improved result is a consequence of the Action Plan that LEGO Company launched at the beginning of the year. The action plan involves trimming the Company's capacity and cost structure to a lower sales level and increased focus on customers, e.g. by improving customer profitability, faster development of new products, and adopting a more relevant product range.

In implementing the Action Plan it has become increasingly clear that the book value of many of the Company's assets should be substantially impaired. This is due especially to a 25 30% drop in sales since 2002 plus the fact that the Company's production capacity is too high owing to the low rate of growth in the toy market combined with the productivity improvements achieved by the LEGO Company in recent years. This non recurring cost - which is expected to be incurred this year - will bring the total pre tax deficit for 2004 to between DKK 1.5 2.0 billion.

In addition, the Company is planning to divest a number of other assets not directly associated with its core business: play materials. No final decision has yet been made on which assets will be sold but it is clear that the LEGOLAND Parks will be transferred to a separate company, wholly or in part under new owners.

The Company will also continue to reduce costs in other areas. So far, costs have been reduced by approx. DKK 1.2bn during the past year. And in the same period the workforce has been reduced by almost 1,000 employees. But in this very difficult competitive situation the Company will be obliged in the coming years to continue cutting its costs considerably.

On finalising this plan - based as it is on a thorough analysis of the Company's situation, challenges and organisation - Kjeld Kirk Kristiansen has decided that he can now step down from his post as CEO of LEGO Company. Kjeld Kirk Kristiansen will continue as deputy chairman of the board. The board will remain unchanged with Mads Øvlisen as chairman.

Kjeld Kirk Kristiansen says:
"Since January, my task has been to set a new direction for the Company and create a plan for the recreation of a profitable LEGO Company. The direction is clear and the Action Plan is already creating results. Therefore, this is the right time for the future Corporate Management to take over. I have worked very closely with them and the other members of the Leadership Team on the creation and development of the Action Plan. I am therefore completely confident that the right management is ready to take over. Their task is to create a profit in 2005 and a result for 2006 which will provide a satisfactory return. As owner, I will of course continue to be close to the Company. Partly as Deputy Chairman of the Board of Directors, and partly as Chairman of the LEGO Foundation and of several of our Danish companies."


The new CEO - appointed with immediate effect - is Jørgen Vig Knudstorp, who has hitherto been Senior Vice President, Corporate Affairs. The Corporate Management will now comprise Jørgen Vig Knudstorp and Jesper Ovesen, CFO.

In addition, the leadership of LEGO Company consists of: Henrik Poulsen, Senior Vice President, European and Emerging Markets (now also including Japan and Korea); Søren Torp Laursen, Senior Vice President, Americas, Australia/New Zealand and Direct-to-consumer; Mads Nipper, Senior Vice President, Global Innovation and Marketing; and Lars Altemark, Senior Vice President, Global Supply Chain. Furthermore, the LEGOLAND Parks (Mads Ryder) report to Corporate Management.



M.a