April 23, 2020 / 5:28 AM / a month ago

BRIEF-Haldex Q1 Adjusted Operating Income Falls To SEK 43 Mln

April 23 (Reuters) - Haldex AB:

* HALDEX INTERIM REPORT, JANUARY - MARCH 2020

* HALDEX AB Q1 SALES FELL BY 12% AND TOTALLED SEK 1,180M (1,339)

* Q1 ADJUSTED OPERATING INCOME TOTALLED SEK 43M (97), EQUIVALENT TO AN ADJUSTED OPERATING MARGIN OF 3.6% (7.2)

* CHINA IS HOWEVER RECOVERING QUICKLY AND MARKET VOLUMES ROSE BY 10% IN MARCH AND FROM OUR PERSPECTIVE, BOTH SALES AND OPERATIONS ARE ALMOST AT FULL SPEED

* ON CORONAVIRUS: COVID-19 HAS HAD A SIGNIFICANT EFFECT ON OPERATIONS, AND WITH EXCEPTION OF CHINA WE EXPECT EVEN WEAKER SALES IN Q2

* COVID-19 MEASURES IMPACTED DEMAND, WHICH DECLINED SIGNIFICANTLY, PRIMARILY IN FEBRUARY

* WE ARE COMMITTED TO REACHING AN ADJUSTED OPERATING MARGIN OF 10% IN 2022

* TO LOWER OUR COST BASE EVEN FURTHER WE HAVE DECIDED ON A NEW LONG-TERM STRUCTURAL SAVINGS PROGRAMME ADDING EXTRA ANNUAL SAVINGS OF SEK 100M

* COVID-19 HAS HAD A SIGNIFICANT EFFECT ON OPERATIONS, AND WITH EXCEPTION OF CHINA WE EXPECT EVEN WEAKER SALES IN Q2

* MEASURES WILL REDUCE COST-BASE AND NUMBER OF EMPLOYEES

* ADDING SAVINGS FROM OUR LONG-TERM STRUCTURAL PLANS, WE EXPECT ANNUAL SAVINGS OF SEK 203M

* DECIDED TO REDUCE CAPITAL EXPENDITURES WITH APPROXIMATELY SEK 100M IN 2020

* REDUCTION OF OUR OPERATIONAL FOOTPRINT WILL REDUCE ANNUAL COSTS BY SEK 75M FROM 2021

* ALTHOUGH WE HOPE FOR A BROADER RECOVERY H2, WE HAVE WITHDRAWN OUR FORECAST FOR FULL YEAR AND HAVE DECIDED NOT TO ANNOUNCE A NEW FORECAST UNTIL WE HAVE A BETTER PICTURE Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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