Brief: Detection Technology Q1 Operating Profit Down At EUR 1.2 Million

DETECTION TECHNOLOGY Oyj

27/04/2020 07:08

April 27 (Reuters) - Detection Technology Oyj  DETEC.HE :
    * DETECTION TECHNOLOGY PLC BUSINESS REVIEW JANUARY-MARCH
2020
    * Q1 NET SALES DECREASED BY -13.6% TO EUR 19.9 MILLION
(23.1)
    * Q1 OPERATING PROFIT (EBIT) WAS EUR 1.2 MILLION (3.9)
    * ON CORONAVIRUS: DEMAND IN SECURITY APPLICATIONS AND OUR
PROFITABILITY SUFFERED FROM OUTBREAK OF COVID-19
    * OUR Q1 SALES DECREASED BY NEARLY 14%, WHICH HAD AN IMPACT
ON OUR
PROFITABILITY
    * COVID-19-RELATED RISKS MATERIALIZED IN OUR SBU BUSINESS,
BUT ON
OTHER HAND, DEMAND IN MEDICAL COMPUTED TOMOGRAPHY (CT) SOLUTIONS
INCREASED TOWARDS END OF Q1
    * FORESEE HEALTHY PROSPECTS IN MEDICAL FOR Q2 AND H2, AND
MID-TERM
GROWTH DRIVERS ARE STRONG IN BOTH OF OUR BUSINESS UNITS
    * DEMAND IN MEDICAL CT SEGMENT AT BEGINNING OF 2020 WAS
CHARACTERIZED BY SOFTENING OF MARKET THAT STARTED LAST YEAR
    * EXPECTS LOWER DEMAND IN SECURITY SEGMENT TO CONTINUE AND
SBU
SALES TO DECREASE IN Q2
    * DEMAND IN MEDICAL CT APPLICATIONS, HOWEVER, WILL REMAIN AT
A
GOOD LEVEL IN Q2, AND MBU SALES WILL GROW
    * EXPECTS DEMAND IN MEDICAL CT APPLICATIONS TO REMAIN AT A
GOOD
LEVEL ALSO IN H2, AND MBU SALES TO INCREASE IN 2020
    * ESTIMATES THAT DROP IN DEMAND IN SECURITY SEGMENT WILL
CONTINUE
AT LEAST TO END OF YEAR
    * ESTIMATES INDUSTRIAL SEGMENT WILL GROW IN 2020, BUT GROWTH
IS
LIKELY TO BE BELOW INDUSTRY FORECAST OF 5%
    * EXPECTS SBU SALES TO DECREASE IN 2020
    * AIMS TO INCREASE SALES BY AT LEAST 10% PER ANNUM AND TO
ACHIEVE
AN OPERATING MARGIN AT OR ABOVE 15% IN MEDIUM TERM

Source text for Eikon:  ID:nWkr5PXwp1 
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