Oslo-based Ementor said it would report a loss before interest, tax and amortization of NOK 20m ($3.16m), before restructuring charges for the three months ended December 31, 2004. Ementor blamed the loss on its poor performance on its consulting services in Denmark, where it has experienced lower revenue and margins. Net cash at the end of the quarter stood at NOK 558m ($88.2m).
The company said it will take a NOK 65m ($10.3m) restructuring charge in the fourth quarter, of which NOK 45m ($7.11m) will relate to the Danish operation, and the remaining NOK 20m ($3.16m) will cover the resignation of Ementor’s former CEO Arne A Jensen, the managing director of Ementor Norge, and the headcount reduction in its corporate staff.
Ementor has had a very bad start to 2005. The company announced on January 12 that it would begin to dramatically reduce its internal corporate functions and overhaul its management team. This involved the departure of the board of directors and Steinar Sonsteby, deputy CEO Ementor and managing director of Ementor Norge. Ementor said Ole Morten Settevik, CTO and EVP, will replace Sontesby as CEO of Ementor Norge, and his former role will then become redundant. Ementor is also removing its corporate human resources department. It said parts of the finance, business development, and communications departments will also be removed.
Karine Mathiesen, a spokesperson for Ementor, told ComputerWire that the total number of people involved in the headcount reduction amounts to between eight and 10 people, of which four are from HR. Dag Sorsdahl is the current acting CEO for Ementor, and Jo Lunder, current VimpelCom chairman, will take over Ementor’s CEO position at the end of the first quarter.