Kardex Holding AG / Key word(s): Interim Report
Zurich, 8 July 2020
Kardex expects decline in bookings and earnings
Due to the Corona crisis, Kardex is recording a weakening of bookings at Kardex Remstar. The Group therefore expects a temporary slowdown in the positive development of revenues in the second half of the year and a related decline in profitability.
Kardex Remstar and Kardex Mlog have always been able to deliver in recent months, despite the COVID 19 challenges. In some cases, however, access restrictions at customers meant that deliveries, installations and service work on site were not possible and had to be postponed. This led to postponed revenues and partial short time working in the organization. In combination with the weaker bookings, the first six months of the year under review are expected to show a decline in revenues of around 10% compared to the previous year. The EBIT margin of Kardex is expected to be around 2% below the same period last year due to a one-off revaluation of inventories in Kardex Mlog and the lack of economies of scale in Kardex Remstar, which could only be partially offset by stringent fixed cost management.
The Group Management assumes that the bookings situation will gradually recover in the coming months until the end of the year. Kardex Remstar is able to cope with the previous slump in orders with measures already introduced, for the most part without any significant structural adjustments. However, if the assessment for the third quarter is not confirmed and the global economy continues to deteriorate, adjustments will be made to structures and capacities.
The Board of Directors and the Group Management remain convinced of the medium- to long-term growth opportunities and the dynamics of automation in intralogistics. Therefore, investment activity in strategic projects will continue unabated. This applies to the completion and commissioning of the new plant in the USA, investments in digitization and the further development of the solution and product portfolio. These projects can be managed with the company's financial strength alone, so the balance sheet remains free of interest-bearing debt.
On 30 July 2020, Kardex Holding AG will report on the first half of the year and provide an assessment for the second half.
- Edwin van der Geest, +41 79 330 55 22, investor-relations(at)kardex.com
Today, 8 July 2020, from 2:00 - 3:00 pm CET, a Q&A session with CEO Jens Fankhänel and CFO Thomas Reist will take place.
- Switzerland / Europe +41 (0) 58 310 50 00
- United Kingdom +44 (0) 207 107 06 13
- United States +1 (1) 631 570 56 13
- Other international numbers available HERE
Please dial-in approx. 5 minutes prior to the telephone conference.
Live Audio Webcast: https://ccwebcast.eu/links/kardexag200708/indexl.html
The media release and the presentation for the conference call will be available on 8 July 2020 from 7:00 am (CET) on our website.
Kardex - Corporate Profile
File: Kardex_Media release_20200708
End of ad hoc announcement
|Company:||Kardex Holding AG|
|Phone:||+41 (0)44 419 44 79|
|Listed:||Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; SIX Swiss Exchange|
|EQS News ID:||1088459|
|End of Announcement||EQS Group News Service|