March 24, 2020 / 7:43 AM / 14 days ago

BRIEF-Axactor Considers Workforce Reductions

March 24(Reuters) - Axactor SE:

* SAID ON MONDAY NOT IMPLEMENTED TEMPORARY WORKFORCE REDUCTIONS, ALTHOUGH THIS IS CONSIDERED AS PART OF ONGOING COST SAVINGS INITIATIVES

* IS OBSERVING LOWER COLLECTION PERFORMANCE AS A RESULT OF COMPREHENSIVE COVID-19 MEASURES, PARTICULARLY IN ITALY AND SPAIN

* ITALIAN OPERATION, WHICH IS HARDEST HIT, ACCOUNTS FOR APPROXIMATELY 5% OF REVENUE AND A LOWER PERCENTAGE OF RESULTS

* SEES A SIGNIFICANT REVENUE SHORTFALL IN Q1 AND A FURTHER REVENUE DECLINE IN Q2 2020

* EXPECTS SITUATION TO GENERATE INCREASING 3PC VOLUMES IN H2 DUE TO A HIGHER VOLUME OF NON-PERFORMING LOANS ON CUSTOMERS’ BALANCE SHEETS

* EVEN THOUGH REVENUE AND EBITDA LEVELS IN Q1 WILL FALL SIGNIFICANTLY BELOW FORECASTS, OPERATIONAL CASH FLOW FROM BUSINESS WILL CONTRIBUTE POSITIVELY TO LIQUIDITY

* CHALLENGING GLOBAL ECONOMIC OUTLOOK WILL LIKELY MEAN THAT AN INCREASING AMOUNT OF NON-PERFORMING LOANS WILL COME TO MARKET AT SIGNIFICANTLY LOWER PRICES

* WILL HOLD BACK ON INVESTMENTS IN NEW NPL PORTFOLIOS WHILE REMAINING COMMITTED TO ALREADY ENTERED FORWARD FLOW AGREEMENTS

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Further company coverage: (Gdansk Newsroom)

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