Projektengagemang anticipates lower earnings than expected in Q3. CEO leaves for new assignment
Due to low utilization rate during August and the first half of September the third quarter EBITA-result is expected to be approximately 20 MSEK lower than in the same period last year. Per Hedebäck, President and CEO, has resigned and informed the Board of Directors that he will leave the company for a new external assignment.
The Chairman of the Board of Projektengagemang, Per-Arne Gustavsson, has by the Board been appointed as the acting President and CEO as of today 17 September. Per Hedebäck will be available to assist the company during the fall. The recruitment of a new President and CEO starts immediately.
– Earnings development for Projektengagemang during August and the first half of September has been impacted by lower utilization rate compared to the same period last year within several of our business areas. This means that we already now can conclude that we will not reach our planned level of earnings for the third quarter and full year 2019. The development so far during the third quarter is mainly due to some larger projects being started later than planned. In addition, earnings have been impacted by restructuring costs within the management consulting business unit, says Per-Arne Gustavsson, chairman of the Board and acting President and CEO for Projektengagemang.
The lower than anticipated results during August and the first half of September means that Projektengagemangs EBITA-result for the third quarter is expected to be approximately 20 MSEK lower versus the same period in the previous year and that the EBITA-result for the full year 2019 is expected to be lower than for full year 2018. The previous outlook, which was stated in the CEO-comment for the second quarter 2019, was an anticipation of EBITA for the 2019 full year to be consistent with, or slightly better than previous year.
– We have today received Per Hedebäcks letter of resignation and that he has choosen to leave Projektengagemang for another external assignment. I want to thank Per for his efforts in establishing a common platform for continued growth for Projektengagemang. The Board of Directors and Executive management team´s top priority is to improve the Group´s profitability. The sales and cost initatives that have been launched during the year are running in line with plan and we will review if additional initiatives are needed to restore profitability, says Per-Arne Gustavsson.
– My time as CEO for Projektengagemang has been stimulating and eventful. I have had the opportunity to get to know fantastic co-workers and take part in exciting customer assignments and want to thank everyone for the cooperation during the past years, says Per Hedebäck.
Projektengagemang will publish the interim report for the third quarter 2019 on Friday 8 November.
THIS INFORMATION IS INFORMATION THAT PROJEKTENGAGEMANG SWEDEN AB (PUBL) IS OBLIGED TO MAKE PUBLIC PURSUANT TO THE EU MARKET ABUSE REGULATION. THIS INFORMATION WAS SUBMITTED FOR PUBLICATION, THROUGH THE AGENCY OF THE CONTACT PERSON, AT 07:45 CEST 17 SEPTEMBER 2019.