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TLC shifting production & results


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#1 xwingyoda

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Posted 31 August 2005 - 01:32 PM

Guys fresh news from our beloved TLC !!!!

1) LEGO Group half year result in line with expectations

"During the first six months of 2005 the LEGO Group managed to recapture market shares in a global toy market that remains under severe pressure. Consumer sales of LEGO products showed a positive trend in all markets – in the US, Europe and especially in Asia.

As demand for a number of product lines -- in particular LEGO Star Wars -- is much greater than forecast, the LEGO Group expects there to be considerable pressure on its supply capacity during the coming peak season."

Now it is all so clear, TLC is getting better and will continue the SW licence  *satis* . I'm sure vikings is part of those lines !!!!
Also, make sure to buy sets first becuse supply will be crappy !!!!!

Link: http://www.lego.com/...=&archive=false

2) LEGO Group adjusts its production in Europe

"It is expected that all Swiss based production will transfer to Eastern Europe during the first half of 2006. The planned move will mean closure of the Willisau factory, where 239 employees will lose their jobs. Production is expected to transfer to the Group’s own plant in the Czech Republic and to external suppliers. It is not yet known how many new jobs will result from the move. “Obviously high costs in Switzerland have been a key factor in deciding to transfer production to Eastern Europe. And to derive maximum benefit from our cost reductions it is also important to move whole units – as we now plan to do with Swiss production.”

"One single distribution centre in Czech Republic
In future the LEGO Group will have only one single European distribution centre. It will be located in the Czech Republic and will be operated by the external logistics company DHL Solutions. The new DC is expected to begin operating in early 2006.
In concentrating its distribution facilities, the LEGO Group is expected to close its existing five DCs in Billund (Denmark), Hohenwestedt and Flensburg (Germany), and Dunkirk and Lyon (France) during the period January 2006 to March 2007. The centres in Billund and Hohenwestedt are owned by the LEGO Group, the others by external operators.
A total of 301 employees work at the affected centres, including 213 LEGO employees."

Historically bye, bye Billund !!!!!!! However, if cost reduction is sufficient, we will have lower priced sets !!! Lets wait and see.

link: http://www.lego.com/...=&archive=false

Enjoy guys  ;)

#2 Mister Phes

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Posted 31 August 2005 - 01:38 PM

Where's...

3) A new SYSTEM based Pirate theme based on the original but with many new clever and creative innovations

???

#3 SuvieD

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Posted 31 August 2005 - 02:20 PM

xwingyoda, on Aug 31 2005, 01:32 PM, said:

Consumer sales of LEGO products showed a positive trend in all markets – especially in Asia.

As demand for LEGO Star Wars -- is much greater than forecast

One single distribution centre in Czech Republic
In future the LEGO Group will have only one single European distribution centre.
I think we can expect LEGO to do well this up coming year.  The begin to see the potential in the world market and not just in the US, England and EU.

This actually surprised me.  I think the new sets are not all tht great.  But it just goes to show that SW is popular enough to drive sales based on collectability alone.  Now I wish they would secure that LotR (book) license and begin selling that!

This last one make complete sense.  One of the reason LEGO is cheaper in the US is due to the fact that we have one distribution center in Enfield, CT.  This will allow LEGO to lower prices.  Sadly, this is at the cost of almost 1000 jobs.  Hopefully, they can lower costs and sell more LEGO or at least save enough by doing this to make even better products.

#4 Mister Phes

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Posted 31 August 2005 - 03:52 PM

A distribution centre in the southern hemisphere would be really nice!  Prices here would have to be more expensive than they are anywhere else.

#5 prateek

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Posted 02 September 2005 - 09:07 PM

yay lower prices!!! thats wat i want to hear

#6 ImperialJohn

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Posted 02 September 2005 - 11:07 PM

Quote

yay lower prices!!! thats wat i want to hear
Let's look a little at the consequenses of that remark.

TLC want lower prices. TLC moves production to countries that means lower costs. That is great for AFOLS!

But let's take it a bit further!

Your Dad looses his job at LEGO meaning that your allowance is lowered (or are zero)
You can't buy any LEGO! Won't get any LEGO at birthdays!

Every time you think "great this is cheep" - jobs are lost in the west!!!!!
Every time you buy a cheep product jobs are created in the East!!!!!

China and India alone have 2 billion people ready to do YOUR work - Are you prepared?

This is a doomsday vision I know but think about it !!!!!!
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#7 snefroe

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Posted 03 September 2005 - 12:04 AM

ImperialJohn, on Sep 2 2005, 11:07 PM, said:

Quote

yay lower prices!!! thats wat i want to hear
Let's look a little at the consequenses of that remark.

TLC want lower prices. TLC moves production to countries that means lower costs. That is great for AFOLS!

But let's take it a bit further!

Your Dad looses his job at LEGO meaning that your allowance is lowered (or are zero)
You can't buy any LEGO! Won't get any LEGO at birthdays!

Every time you think "great this is cheep" - jobs are lost in the west!!!!!
Every time you buy a cheep product jobs are created in the East!!!!!

China and India alone have 2 billion people ready to do YOUR work - Are you prepared?

This is a doomsday vision I know but think about it !!!!!!
well, in this case, john, jobs stay in the european union, but we get your point. however, your point is also just a little bit one sided, after all, the poor asian or indian , who is without a job now, gets a brand new job and will be able to send his kids to school so they get at least one shot in life...

prices can be lowered, btw, by reducing other costs, like getting rid of the airplanes, selling the airport, reducing the number of working hours, without sacking some one...

#8 Mister Phes

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Posted 03 September 2005 - 12:20 AM

My daddy aint gonna lose his job no matter LEGO does!  He never bought me LEGO anyway. Loss of jobs in Europe only work to my advantage for various reason.  Think of all poor Chinese and Indians that could live above the poverty line with these jobs.  Yes, they only get paid 5 cents an hour but that's worth a lot more in those countries than anywhere else.  These poor Asians don't have a wellfare system like the most of the European countries, so this is a really good opportunity for them to buy new underwear!

Anyway the artical said the European distribution centre will be located in the Czech Republic so that's not going to help the Chinese and Indians unless they move there...

#9 ImperialJohn

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Posted 03 September 2005 - 08:14 AM

Yes I know that my point is one sided.
Yes I know that the jobs stay in European Union . (For now anyway)

But the fact is that the world is changing!

Jobs are moved East and living standards will be better! That is good! I agree on that. But it has consequenses!
Jobs are lost in the West. And there will be less people to pay for the wellfare system. This situation will not hold for long!

The problem here is not to give something to someone! It is that someone is loosing something!

This could end up in a long discussion about global economics.
But as long as there is difference in the world - changes will happen.
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#10 xwingyoda

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Posted 03 September 2005 - 10:43 AM

EB found its Michael Moore  :D

Just a couple off topics points !!!!

Cheap/child labor in Asia
= less child prosttution, those families live way better !!!!!
= products are now affordable to less fortunate people that could not afford them (NIKE: in the US most Nike consummers could NOT afford those products if it was manufactured in the States !!!!),

Cheaper labor in the Eastern Europe
= huge economic benefits for those people !!!! better salaries, they have more jobs...

Bottom line, we have to think also to their benefits !!!!!! Its a win/win situation

#11 Mister Phes

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Posted 03 September 2005 - 12:07 PM

Why do we have to think of their benefits?  If these forementioned countries spent less money on their nuclear weapons programs and more on their people they might be far better off anyway.  However, I don't have the facts and merely writing that out of ignorance because I can!



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