directory publisher Eniro AB announced last week that it will discontinue
its Windhager directory publishing division, which published directories
in the Baden-Wurtemberg region in Germany. The decision came following
the realization that the operation was falling well short of its revenue
objectives and was not going to generate a profit in the foreseeable future.
According to Eniro,
the Windhager business was slated to lose about 200 million Swedish kronor
in 2002 (US$22 million). The company will incur divestment costs of 300
million Swedish kronor, plus a goodwill write-down of 800 million Swedish
kronor and a write-off of deferred tax receivables of 200 million Swedish
kronor. This 1.3 billion Swedish kronor in costs will be charged against
fourth-quarter 2002 earnings.
Eniro will continue
to pursue its lawsuit against DeTeMedien seeking compensation for losses
resulting from the discontinuation of Windhager's contract with DeTeMedien.