AS KALEV

ANNOUNCEMENT

18.02.99

 

 

COMMENTARY TO THE ARTICLE OF ÄRIPÄEV

 

Do to the emphases in the 18.02.99 article of Äripäev, the reader may 

understand that decline in sales was unexpected and unpredicted for AS 

Kalev. True: comparing the total sales of Januarys 1998 and 1999, the 

sales have indeed decreased by 40%; comparing the respective figures 

for Estonia, the decrease amounts to 20%. However, the actual decline 

in the sales volumes took place already in the III quarter of 1998, 

when the economic crisis in Russia impacted AS Kalev, just as it did 

all the other large companies exporting their products to Russia. 

Analysis of the Russian sales volumes indicates that 80% of total 

exports to Russia in 1998 occurred during the I half year (see Kalev 

announcement of 18.02.1999/ "1998 sales commentary"). Also, compared 

with 1997, the market share in Estonia decreased in 1998. 

 

The altered economic environment, expected low level of exports in near 

future, and elimination of several support services were the reasons 

for the company to decrease the number of its employees in November 

1998. As of today, Kalev has delivered lay-off notices to ca 140 

employees; last of these people will leave the company by May 1999. In 

addition, Tööinspektsioon (Employment Inspectorate) permits Kalev to 

impose partial working hours for 156 employees, and partially 

remunerated vacation for 235 employees. Currently, 3 employees are 

working part-time, and 0-100 employees (depending on the customers’ 

orders) are on partially remunerated vacation.

 

 

Tiina Altmets

Information Manager 

+372 628 3710