Cicor updates its outlook due to COVID-19

The production sites of the Cicor Group have so far been in operation at all times during the course of the COVID-19 pandemic. Thanks to the implemented protective measures, the ability to deliver to customers was ensured at all times and at the same time the employees were protected against an infection with the new coronavirus, the company writes in the update. However, the comprehensive measures have led to temporary reductions in production capacity at Cicor. Due to interruptions of customers’ operations, losses in sales in Cicor Group's business could not be prevented everywhere. The manufacturer therefore expects that sales in the first half-year 2020 will be 15 - 20% lower than in the first half-year 2019. Sales in the first half-year 2019 was also strongly affected by the record high order backlog from the reporting year 2018. Based on the lower sales, the company expects an EBIT margin of around 3% in the first half-year 2020. The Cicor Group's long-term EBIT margin target remains in a range of 6 - 8%. Existing customer projects will continue without exception, although in some cases with delays caused by the pandemic. Unless there is a significant second pandemic wave, Cicor expects an initial recovery of business in the third quarter of 2020. “The mid-term outlook for the Cicor Group remains positive. Due to the full project pipeline, sales growth is expected in the coming years. Cicor is in a stronger financial and operational position than many of its competitors and expects to continue to gain market share in the future and consequently grow faster than the market,” the company writes.