EMS Group reports Q1 FY20 sales of CHF 496 million

06 Apr '20

2 min read

Pic: EMS Group

The EMS Group, a high performance polymers and specialty chemicals company, has reported 17.8 per cent decline in its net sales to CHF 496 million in the first quarter (Q1) FY20 compared to sales of CHF 604 million in same period prior year. Sales of high performance polymers decreased 17 per cent to CHF 440 million (FY18: CHF 530 million).

Sales of speciality chemicals dropped 23.7 per cent to CHF 56 million compared to CHF 74 million in prior year.

The group stated that after the global economy slowed down in 2019, it was further heavily impacted in the first quarter of 2020 by the different national Covid-19 measures. These had a particularly negative effect on the global car industry, which slumped by 25 per cent to previous year, as reported. Futher, the group reported that the Chinese automotive industry has restarted operations and is regaining momentum.

With the efficiency programmes launched by the EMS group in 2018 and cost-reducing measures implemented at an early stage, group reported that it was possible to limit the negative effect on profitability. Output needed to be adapted to suit reduced demand. At production sites outside Switzerland, the group is introducing flexible working hours or short-time work.

The group in its future outlook reported that the current global market slump will have an impact on the whole business year 2020. The massive decline in business and available income throughout the world will further pressurise demand even after a return to normality.

Fibre2Fashion News Desk (JL)

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