Eltel’s second quarter 2016 results to be impacted by a

New Post Public Reply Private Reply Replies (0) Message Board

News Desk 2018

Aug 16, 2016 at 1:45 AM

Eltel’s second quarter 2016 results to be impacted by a EUR 10 million provision in one rail project in Norway

During delivery inspections of a rail project in Norway unsatisfactory technical quality in work execution have been identified and a significant amount of additional work to finalise the project is consequently required. Eltel is recording a provision of EUR 10 million in its second quarter results to cover these additional costs. During 2016, Eltel has communicated that there are challenges within the Transport & Security segment in the execution of two rail projects in Norway. Overall bad project execution originally derives from too fast ramp up of two parallel rail projects. These were started as Eltel entered the rail business in Norway in 2013-2014. In the second quarter, during delivery inspections in one of these projects, unsatisfactory technical quality and an increased volume of additional work to complete the delivery were identified. The main root cause for the unsatisfactory technical quality and increased work to complete is poorly performed installation work in combination with weak project and subcontractor management. This has resulted in the need for significant additional corrective works in the execution of the project. During July and early August, detailed assessment of the additional cost to correct identified deficiencies and to complete remaining work has led to an updated assessment confirming that the cost to rectify these remaining issues significantly exceeds the previous assessment. These additional costs require a provision of EUR 10 million. This provision of EUR 10 million will negatively affect Eltel’s operative EBITA in the second quarter. Axel Hjärne, CEO comments: “Never in my twelve years at Eltel have I experienced anything close to this and it is totally unacceptable. Eltel is a company which delivers quality to its customers and which applies structured ways of performing our business. We are currently doing everything possible to correct the situation, at the same time securing that nothing similar would happen again. We are taking instant corrective and preventive actions. Eltel has initiated several managerial changes to the project during the past months and the project management is being further strengthened by internal support. An additional review of subcontractor quality performance by third party will be conducted immediately. We expect the final project to be delivered to the customer during 2016.” Eltel will publish its second quarter 2016 interim report on Friday 19 April 2016 at 8.00 CET. This information is information that Eltel AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CET on August 16, 2016. Today Eltel’s CEO Axel Hjärne and CFO Gert Sköld will host an audiocast in English starting at 08.30 CET. The event will be audiocasted live on https://wonderland.videosync.fi/2016-08-16-eltel. For those who would like to participate on the telephone conference in connection with the audiocast, the telephone numbers are: · Sweden: +46 8 566 42692 · Finland: +358 9 817 10491 · United Kingdom: +44 20 300 89808 Please, call well in advance to register. There will also be an opportunity to ask questions via audiocast or telephone conference. For further information: Ingela Ulfves VP - IR and Group Communications Tel: +358 40 311 3009, ingela.ulfves@eltelnetworks.com About Eltel Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. In 2015 Eltel net sales amounted to EUR 1,255 million. The current number of employees is approximately 9,600. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Everest Group Faces Major Class Action Deadline Looms

Everest Group's Headaches Multiply as Deadline Approaches Well, here we find a classic case of Wall Street drama—Everest Group, Ltd. (NYSE:EG), a company whose troubles would make any trader weary. As of late, it's caught up in a nasty class-action lawsuit with stakes high enough to raise eyebrows from Broadway to Bayou. Investors in Everest better be tuned in, because...

Zillow Set for Major Talks at RBC Capital Markets Conference

Zillow Group Prepares for a Key Presentation Turning heads again, Zillow Group, a heavyweight in real estate innovation, is gearing up for a spotlight moment. Come November 17, they're taking the stage at the RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference in the Big Apple. Now, these corporate shindigs aren't always a ticker...

AXON Revenue Forecast Cut Spurs Legal Investigation

Axon's Revenue Forecast Takes a Hit Listen up, folks. Axon Enterprise, Inc. (NASDAQ: AXON) has stirred the pot, cutting their 2026 revenue forecast faster than you can say "counter-drone deployment." Back in August, they were riding high on their second-quarter call, raising their growth forecast to a cheerful 32%-34%. Fast forward to November, and it's been slashed to...

Pen Needles Market to Hit $3.37B by 2031: Growth Ahead

Big Numbers in the Needle Game When you're staring down the numbers popping out of this pen needles market projection, it's hard to ignore—shooting from a respectable $2.16 billion in 2026 to a hefty $3.37 billion by 2031. We're talking a 9.3% CAGR that'll have investors pulling out their calculators or maybe rubbing their hands in downright glee, depending on their...

Cognizant Grabs Wizeline: A Power Play in Digital

An Acquisition with Strategic Weight Cognizant's just bagged a beast, folks. The purchase of Wizeline marks a hefty step for NASDAQ:CTSH in the ever-evolving landscape of digital engineering and AI. It's not the kind of strategic move you see every day. The Wizeline Asset: What Stands Out? Wizeline isn't just window dressing. It's a heavy hitter in AI-native digital...

Blue Owl Tech Faces Lawsuit Post-44% Share Dive

The air's thick with tension for investors of Blue Owl Technology Finance Corp. (NYSE:OTF) as they wake up to the news of a securities class action lawsuit that's no small fry. You don’t have to look too far to see why the folks holding the bag might be steamed. We’re talking about a 44% drop in stock price since the merger with Blue Owl Technology Finance Corp....

MNTN Revenue Miss Sparks Shareholder Investigation

When Revenue Goes South, Shares Follow Nothing like a Friday morning stock bloodbath to shake things up. MNTN, Inc. (NYSE:MNTN) had traders tossing back extra caffeine shots on November 5, 2026, when the company reported third-quarter revenues of $80.3 million. Let's just say that number didn't quite sit well with the folks who'd been banking on an $87.7 million...

Yiren Digital's Tumble: Lawsuit Timeline for Investors

Yiren's Stock Plunge and the Legal Quagmire What a mess Yiren Digital Ltd. (NYSE:YRD) finds itself in, huh? We're looking at a stunning 44.05% stock nosedive that's left a trail of bruised investors in its wake. Now that's a real gut-punch for any portfolio hugging YRD. So, what's spinning this cycle of chaos for our digital player from across the pond? The Flash Point:...

Recovery 180's Landmark Facility: Community Impact Unfolds

Taneytown Takes a Significant Leap Well, Taneytown's making noise, folks. Never thought this sleepy spot would pull off something so important, but here we are with Recovery 180 opening Taneytown’s first-ever residential Level 3.1 treatment facility. After four years of struggle, the largest venture in Carroll County is opening its doors to residents who desperately...

Sussex County Data Breach Raises Security Concerns

The Digital Fiasco: A Wake-Up Call Straight out of Sussex County in good ol' New Jersey, we’re staring down another data breach, folks. When you hear about a data privacy incident, there's always that same sinking feeling of another layer of personal security peeled away. This time, the Sussex County Prosecutor's Office got caught in the crossfire, with personal info...