FINLAND: HKScan reduces 2011 EBIT guidance
HKScan has lowered its full-year forecast
Finnish meat processor HKScan has reduced its forecast for its 2011 EBIT on the back of rising raw material costs and other high production input costs.
The company said today (26 July) that it now expects full-year EBIT to be lower than in 2010. It said that its earnings development in the early part of the year has been "weaker than anticipated".
The company initally forecast that full-year EBIT in 2011 would improve against 2010.
"The ongoing difficult conditions in the international pork market and the rising prices of raw materials and other production inputs are eroding business profitability in all markets, especially in Finland," the company said.
It also said that over-production of pork elsewhere in Europe led to increased pressure in HKScan's markets to import meat. "Pork profitability in Finland is furthermore weakened by the low price level in export markets," HKScan said.
The company plans to increase prices to improve profitability and it will also take steps to accomplish an "orderly adjustment" of pork production volumes in Finland. It said that efficiency programmes in Finland and Sweden provide the foundation for more "positive development in the group's competitiveness and profitability".
There's been a sense of boldness from the world of food this past week, with companies making interesting moves into new products, acquisitions and territories....
Finnish meat processor HKScan has named Hannu Kottonen as its new chief executive....
- What next for Nestle under new CEO Schneider?
- Unilever is "working harder" in tough environment
- Nestle catering for an ageing global population
- What post-Brexit trade with the EU could look like
- Hemp food sales in the US set for growth
- Unilever sees growth but spreads decline continues
- Job cuts imminent as General Mills restructures
- Campbell's Soup's sustainable growth strategy
- Arla Foods unveils strategy for growth up to 2020
- Lindt organic sales miss market expectations