April 28, 2020 / 4:39 PM / a month ago

BRIEF-SEB Expects Revenues To Fall Significantly In 2020

April 28 (Reuters) - SEB SA:

* Q1 SALES FELL 16.5 PERCENT TO 1.454 BILLION EUR

* Q1 OPERATING RESULT FROM ACTIVITY: EUR 18M, VERSUS. EUR 138M IN Q1 2019

* END-Q1 NET FINANCIAL DEBT: EUR 1,840M, VERSUS. EUR 1,997M AT 31/12/2019

* WESTERN EUROPE GROUP TURNOVER FELL BY NEARLY 15% LIKE-FOR-LIKE IN Q1

* OUR SEVEN CHINESE PLANTS HAVE RESTARTED ACTIVITY AND, FOLLOWING A RAMP-UP PHASE, HAVE RETURNED TO NORMAL PRODUCTION LEVELS, INCLUDING IN WUHAN

* GROUP IS EXPECTING A DETERIORATION IN BUSINESS ACTIVITY IN Q2

* THIS WILL MATERIALIZE THROUGH A DROP IN SALES CURRENTLY ESTIMATED AT AROUND EUR 450 MILLION TO EUR 500 MILLION, WHICH WILL MOST PROBABLY LEAD TO NEGATIVE ORFA FOR PERIOD.

* WHILE IT IS IMPOSSIBLE AT THIS STAGE TO PRECISELY QUANTIFY IMPACTS OF COVID-19 ON YEAR AS A WHOLE, REVENUE AND OPERATING RESULT FROM ACTIVITY WILL FALL SIGNIFICANTLY IN 2020

* DECISION TO REVISE DOWNWARDS BY ONE-THIRD AMOUNT OF DIVIDENDS PAID OUT IN 2020 IN RESPECT OF 2019 SERVES TO IMPROVE CASH FLOW SITUATION BY EUR 43.5 MILLION

* GROUP HAS NOT REQUESTED A DELAY IN PAYMENT OF CHARGES AND TAXES IN FRANCE AND HAS NOT TAKEN OUT STATE-GUARANTEED LOAN

* DESPITE NUMEROUS UNCERTAINTIES CONCERNING CRISIS EXIT SCENARIOS, ALREADY PREPARING FOR BUSINESS RESUMPTION, BOTH IN TERMS OF MANUFACTURING AND CONSUMPTION

* 19 OF OUR FACTORIES WORLDWIDE REMAIN OVERALL CLOSED FOR MOMENT, WHILE 23 ARE OPERATING (OUT OF WHICH 9 AT LOWER CAPACITY) Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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