Færch Plast: Danish packaging company terminates co-operation with CEO

Unsatisfactory 2008 net profit demands new managerial focus The packing company R. Færch Plast Ltd. (www.faerchplast.dk) in Holstebro has in the accounting year 2008 a deficit of DKK 8 million post-tax compared with a profit the year before of DKK 62 million.

After many years with growth both in turnover and net profit it is a question of an evident decrease in the net profit. The company, which produces and sells plastic packaging for use in the food industry and retailing, now takes the consequence of this.

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The company stands today in a significantly different situation than expected. This demands another managerial focus than it does in a period with growth and progress. Therefore the board and Jens Bornstein have agreed that he retires as CEO, the chairman of the board of R. Færch Plast Ltd. Niels Hermansen says.

Niels Hermansen characterizes the net profit of 2008 as unsatisfactory.

The growth failed to come on account of a decrease on the most important markets, among these the English market. It was a question of a fall in the most important exchange currencies, which could not be prevented by a rise in prices and lower costs, and furthermore the company used more resources than expected to introduce a new IT-system, which has not yet provided the expected rationalization. Furthermore it has been a greater challenge than expected to establish our new factory in the Czech Republic, explains Niels Hermansen.

R. Færch Plast A/S has a leading market position in Europe within plastic trays for the food industry. During recent years an amount of considerable millions have been invested in extension and strengthening of the production plant. Therefore the company is ready to deal with difficult market conditions and expects to be able to re-establish satisfactory earnings, Niels Hermansen concludes.

R. Færch Plast A/S had in 2008 a turnover of DKK 927 million compared with DKK 914 million the year before.

The company occupies 577 employees. The equity capital is DKK 316 million.

The chairman of the board, Niels Hermansen, will attend to the daily management in co-operation with the rest of the board of directors, until a new CEO has been engaged.

R. Færch Plast A/S, Holstebro, Danmark

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