S&T Austria: Improved Operating Result in H1 2011

S&T Austria: Improved Operating Result in H1 2011

Restructuring has a positive impact

Following far-reaching restructuring and sustainable cost savings, S&T Austria GmbH reports initial success in improving its half-year results and operating EBIT in June. The results achieved are better than expected.

The restructuring measures being carried out by S&T Austria, which included cost savings of about EUR 8 million and a reduction in the work force of 110 employees, have already had a positive impact. From the perspective of S&T Austria’s half-year results, revenue is 18% higher than the forecast contained in the going concern opinion, and a 35% higher EBIT than predicted. The positive operating result in the month of June is a clear indicator of the success of the implemented measures, followed by another positive performance in July 2011. Revenue of S&T Austria amounted to EUR 31.4 million in the first six months of 2011 (H1 2010: EUR 40.7 million).

Positive signals

“The actual results are significantly better than stipulated in the restructuring plan. Comprehensive cost reductions, the strengthening of the company’s sales operations and savings in staff costs have all had a positive effect. We are pleased to be able to finally send positive signals to our customers, business partners and in especially to our employees again after tough months of restructuring”, says Eduard Bugelnig, Managing Director of S&T Austria GmbH with responsibility for the restructuring efforts.

The package of measures designed to sustainably improve the profitability and productivity of S&T Austria GmbH comprises the enhanced customer orientation on the basis of a more focused product and service portfolio, the strengthening of sales operations and the acceleration and simplification of internal processes. The most extensive efficiency improvements could be generated in procurement and the organizational structure, whereas significant savings were realized in material and facility costs.

During the last few months large projects and new customers have also been acquired, including a major food retailer, a leading international gambling company and an aluminum-processing industrial company.

“We would not have been able to achieve these successes without a highly efficient and productive staff and the loyalty of our customers. We have taken the right initiatives on the marketplace and managed to fill key positions in the company with assertive high achievers“, Eduard Bugelnig adds.

Outlook: Return to profitability earlier than planned
Therefore S&T Austria expects a balanced or even positive operating result in the second half of 2011, and will thus be able to return to profitability earlier than planned.

The service offering with the highest customer value is being massively expanded. In addition to cornerstones of the company’s business such as migration, licensing, storage and virtualization projects which S&T develops, procures and delivers end-to-end, the company is particularly focusing on cloud and managed IT services.

S&T is forging new paths with its “IMAC on Demand©” offering in order to support the business objectives of its customers. The customer is provided with the required flexibility and clearly-defined on-demand service components of the IT hardware lifecycle by S&T service employees who still maintain the same high quality service customers are used to receiving from the company. Together with specific cloud service offers, S&T continues on its path of serving as an innovative IT solution partner.

Source: S&T
CATEGORY: Press-Releases

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