Brief: Axactor Considers Workforce Reductions

Axactor ASA

24/03/2020 07:40

March 24(Reuters) - Axactor SE  AXAC.OL :
    * SAID ON MONDAY NOT IMPLEMENTED TEMPORARY WORKFORCE
REDUCTIONS,
ALTHOUGH THIS IS CONSIDERED AS PART OF ONGOING COST SAVINGS
INITIATIVES 
    * IS OBSERVING LOWER COLLECTION PERFORMANCE AS A RESULT OF
COMPREHENSIVE COVID-19 MEASURES, PARTICULARLY IN ITALY AND SPAIN
    * ITALIAN OPERATION, WHICH IS HARDEST HIT, ACCOUNTS FOR
APPROXIMATELY 5% OF REVENUE AND A LOWER PERCENTAGE OF RESULTS
    * SEES A SIGNIFICANT REVENUE SHORTFALL IN Q1 AND A FURTHER
REVENUE
DECLINE IN Q2 2020
    * EXPECTS SITUATION TO GENERATE INCREASING 3PC VOLUMES IN H2
DUE
TO A HIGHER VOLUME OF NON-PERFORMING LOANS ON CUSTOMERS' BALANCE
SHEETS
    * EVEN THOUGH REVENUE AND EBITDA LEVELS IN Q1 WILL FALL
SIGNIFICANTLY BELOW FORECASTS, OPERATIONAL CASH FLOW FROM
BUSINESS WILL CONTRIBUTE POSITIVELY TO LIQUIDITY
    * CHALLENGING GLOBAL ECONOMIC OUTLOOK WILL LIKELY MEAN THAT
AN
INCREASING AMOUNT OF NON-PERFORMING LOANS WILL COME TO MARKET AT
SIGNIFICANTLY LOWER PRICES
    * WILL HOLD BACK ON INVESTMENTS IN NEW NPL PORTFOLIOS WHILE
REMAINING COMMITTED TO ALREADY ENTERED FORWARD FLOW AGREEMENTS

    
 Source text for Eikon:  urn:newsml:reuters.com:*:nObiwsXnNa
    
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