June 18, 2020 / 5:50 AM / 18 days ago

BRIEF-TKH Group Expects H1 EBITA To Decrease Between 13% And 16% Due To Coronavirus

June 18 (Reuters) - TKH GROUP NV:

* COVID-19 HAS HAD A NEGATIVE IMPACT ON BOTH TKH GROUP’S TURNOVER AND RESULTS SINCE THE BEGINNING OF THE OUTBREAK

* A ONE-OFF CHARGE OF € 3 - 5 MILLION WILL BE TAKEN IN THE SECOND QUARTER, IN THE CONTEXT OF COST-SAVINGS MEASURES

* THE LOCKDOWNS IN FRANCE, ITALY AND THE US, AMONG OTHERS, HAD A SIGNIFICANT IMPACT IN APRIL AND MAY

* TURNOVER IN THE FIRST HALF OF 2020 WILL DECLINE ORGANICALLY BETWEEN 8% AND 9% COMPARED WITH H1 2019

* OPERATIONAL PROFIT BEFORE ONE-OFF INCOME AND EXPENSES (EBITA) WILL DECLINE BETWEEN 13% AND 16% IN H1 OF 2020

* IN CHINA, ACTIVITY LEVELS HAVE RECOVERED SINCE MARCH AND HAS HAD ONLY A LIMITED IMPACT

* CONTINUES TO OPERATE WELL WITHIN THE FINANCIAL RATIO AGREED WITH ITS BANKS

* FOLLOWING THE EASING OF THE MEASURES IN THOSE COUNTRIES IN JUNE, OPPORTUNITIES FOR DELIVERIES HAVE BEEN RE-EMERGING, BUT ARE NOT YET BACK AT NORMAL LEVELS

* PRODUCTIVITY AND CAPACITY UTILIZATION LEVELS WERE THEREFORE LOWER THAN USUAL AND WE EXPECT THIS SITUATION TO CONTINUE IN THE COMING MONTHS

* ECONOMIC UNCERTAINTY RESULTING FROM COVID-19 OUTBREAK ARE HAVING AN IMPACT ON TKH’S ACTIVITIES AND THIS IS LIKELY TO CONTINUE IN THE SECOND HALF OF 2020 Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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