Norwegian conglomerate Orkla today (31 October) warned that it will cut capacity and jobs across its business after posting falling quarterly profits.
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The company, which has interests in food, energy, materials and the investment sector, saw operating profit fall 18.6% to just over NOK1bn (US$148.7m) during the three months to the end of September.
Orkla said “weak” energy trading and financial markets were affecting parts of its non-food operations, although Orkla Brands, its consumer business, posted rising profits.
President and CEO Dag J. Opedal said Orkla would look to make cuts to boost earnings. “Several of the Orkla businesses are experiencing an extraordinary market situation that will be countered with vigorous measures,” Opedal said. “These will include capacity drawdowns, workforce reductions and tight management of investments and working capital.”
Underlying revenue was flat at NOK16.56bn.
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