Schweizer: decline in sales still within rather pessimistic expectation

According to the preliminary figures, the Schweizer Group achieved consolidated sales of EUR 45.4 million in the first half of 2020, compared to EUR 60.2 million during the first half of 2019, this corresponds to a decrease of -24.7%. EBITDA amounted to EUR -5.6 million in the first half of the year, compared to the first half year of 2019 with EUR 1.0 million. EBIT amounted to EUR -9.5 million according to preliminary figures, compared to EUR -2.3 million for the same period last year. This includes non-recurring effects, in particular from the restructuring of EUR 1.1 million. “Production started at the new plant in China in April. From this, we expect clearly positive stimuli from 2021. Nevertheless, the plant has not yet contributed positively to Group net income during the start-up phase,” the company writes in an update. The PCB company has also decided to limits its current forecast to one scenario as the expected course of the current financial year have now stabilised – previously the company had a rather optimistic and rather pessimistic scenario outlined. On this basis, Schweizer expects a decline in group sales in a range from -23% to -28% (previously in the rather pessimistic scenario -20% to -25%). This corresponds to sales of around EUR 87 million to EUR 93 million. The company says that management is planning to extensively expand the cost-saving measures introduced in 2019 in the area of material and personnel costs at the Schramberg site. This primarily involves further staff reduction, adjustment of investment plans and further measures in the area of material costs. Start-up in China will take place in accordance with capacity utilisation.