Brief: TKH Group Expects H1 EBITA To Decrease Between 13% And 16% Due To Coronavirus

TKH

18/06/2020 06:46

June 18 (Reuters) - TKH GROUP NV  TWKNc.AS :
    * COVID-19 HAS HAD A NEGATIVE IMPACT ON BOTH TKH GROUP’S
TURNOVER
AND RESULTS SINCE THE BEGINNING OF THE OUTBREAK
    * A ONE-OFF CHARGE OF € 3 - 5 MILLION WILL BE TAKEN IN THE
SECOND
QUARTER, IN THE CONTEXT OF COST-SAVINGS MEASURES
    * THE LOCKDOWNS IN FRANCE, ITALY AND THE US, AMONG OTHERS,
HAD A
SIGNIFICANT IMPACT IN APRIL AND MAY
    * TURNOVER IN THE FIRST HALF OF 2020 WILL DECLINE
ORGANICALLY
BETWEEN 8% AND 9% COMPARED WITH H1 2019
    * OPERATIONAL PROFIT BEFORE ONE-OFF INCOME AND EXPENSES
(EBITA)
WILL DECLINE BETWEEN 13% AND 16% IN H1 OF 2020
    * IN CHINA, ACTIVITY LEVELS HAVE RECOVERED SINCE MARCH AND
HAS HAD
ONLY A LIMITED IMPACT
    * CONTINUES TO OPERATE WELL WITHIN THE FINANCIAL RATIO
AGREED WITH
ITS BANKS
    * FOLLOWING THE EASING OF THE MEASURES IN THOSE COUNTRIES IN
JUNE,
OPPORTUNITIES FOR DELIVERIES HAVE BEEN RE-EMERGING, BUT ARE NOT
YET BACK AT NORMAL LEVELS
    * PRODUCTIVITY AND CAPACITY UTILIZATION LEVELS WERE
THEREFORE
LOWER THAN USUAL AND WE EXPECT THIS SITUATION TO CONTINUE IN THE
COMING MONTHS
    * ECONOMIC UNCERTAINTY RESULTING FROM COVID-19 OUTBREAK ARE
HAVING
AN IMPACT ON TKH’S ACTIVITIES AND THIS IS LIKELY TO CONTINUE IN
THE SECOND HALF OF 2020

Source text for Eikon:  ID:nNDL7QrYKB 
Further company coverage:  TWKNc.AS 

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