"Satisfactory quarter under the circumstances"
"The second quarter was dominated by intensive efforts to respond to all of the direct and indirect effects arising from COVID-19. All units in the Group implemented local action plans that address their unique situation. Considering these special market conditions, performance during the quarter was satisfactory, despite a significant decline in organic sales and earnings generation.It was a very challenging quarter in many respects and without the extensive efforts and positive attitudes displayed on a daily basis by the Group's employees at all of our sites throughout the world, this would not have been possible. I want to take this opportunity to extend my thanks for all the good efforts made. Our foremost priority remains the health and safety of our employees, while, at the same time, we continue to do our best to meet our customers' needs.
Organic sales for the Group declined 19 percent, with an improvement in the latter part of the quarter. EBIT, excluding items affecting comparability, declined 29 percent, corresponding to an operating margin of 12.3 percent (14.1). Operating cash flow was strengthened significantly.
The market situation for the
Organic sales in
The near future will remain challenging and we do not expect a rapid return to normal market conditions. Many countries have gradually implemented the easing of restrictions, which is positive news, of course, but this has also led to new cases of COVID-19 appearing, which has led to restrictions being reimposed.
Due to the anticipated and long-term effects of COVID-19 on demand, Trelleborg will implement further measures to manage these negative effects. These initiatives address production and sales structures in all business areas and aim to enhance the efficiency of the organization to face a new market situation after COVID-19.
The Group has demonstrated its ability to navigate well through the challenging market conditions created by the ongoing COVID-19 pandemic. Our strong cash flow generation and resilient margins also give us great opportunities to continue building an even stronger Trelleborg for the future", says
Second quarter 2020
· Organic sales during the second quarter of 2020 were impacted by the negative market development as a result of COVID-19. Uncertainty regarding demand for the coming quarters remains considerable. Refer to page 6.
· Net sales for the quarter declined 18 percent to
· Organic sales declined 19 percent.
· EBIT, excluding items affecting comparability, amounted to
· Items affecting comparability for the quarter were a negative
· Restructuring measures were initiated during the quarter to address the impact of COVID-19. Restructuring costs for 2020 will amount to
· Earnings per share, excluding items affecting comparability, totaled
· Operating cash flow amounted to
Market outlook for the third quarter 2020
Demand is expected to be significantly lower than in the first quarter of 2020, adjusted for seasonal variations. Uncertainty regarding demand for the coming quarters remains considerable.
Market outlook from the interim report published on
Demand is expected to be significantly lower than in the first quarter of 2020, adjusted for seasonal variations.
For further information, please contact:
Media: Vice President Media Relations Karin Larsson, +46 (0)410 67015, +46 (0)733 747015, karin.larsson@trelleborg.com
Investors/analysts: Vice President IR Christofer Sjögren, +46 (0)410 67068, +46 (0)708 665140, christofer.sjogren@trelleborg.com
This information is information that
Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative solutions accelerate performance for customers in a sustainable way.
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https://news.cision.com/trelleborg/r/interim-report-april---june-2020,c3157270
https://mb.cision.com/Main/584/3157270/1281731.pdf
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