Incap temporarily reduces capacity in the UK

The rest of Incap’s local manufacturing capacity will be closed down for three weeks until 14 April 2020 in order to reduce the spread of the virus. Just a day earlier, Incap said it would close down of its production unit in Tumkur, Karnataka, India until end of March 2020 due to the Indian government’s latest nationwide lockdown. However, the close down of the Tumkur unit has now been extended until 15 April 2020. As a result of current uncertainty relating to the COVID-19 pandemic, Incap is withdrawing its current guidance for 2020. General uncertainty about overall economic development has weakened the predictability and it is currently too early to quantify the impact on Incap’s financial performance. Back in late February the company stated in a Financial statement release that: “Incap estimates that following the acquisition of AWS Electronics Group Incap’s revenue will be significantly higher than in 2019 and operating profit (EBIT) slightly higher than in 2019 as there will be one-time integration and transaction costs (for example purchase price allocation amortization). The estimates are given provided that there are no major changes in currency exchange rates or in component availability. Incap's estimates for future business development are based both on its customers' forecasts and on the company's own assessments.” The company says it continues to closely monitor the situation in all its markets and follows the instructions provided by the local governments and health protection agencies. "The health and safety of our employees, customers, and partners are our highest priority. Our focus, dedication, and support are unwavering as we navigate through these extraordinary times. Despite the current uncertainty, our trust and belief in the long-term prospects of Incap remain unchanged", says Otto Pukk, President and CEO, in the press release.