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Zumtobel Expects Negative Impact on Its Business for Fiscal Year 2019/20 due to COVID-19

2020-03-24 02: 37

Austria-based lighting company Zumtobel announced on March 23 2020 that due to the coronavirus (COVID-19) pandemic, the Executive Board of the company is expecting a negative impact on the revenue and earnings development.

Following extensive state measures based on the global spread of the coronavirus, the Zumtobel Group also implemented set of measures covering temporary production capacity adjustment and short-term remotely working. The company noted that it will temporarily shut down production sites depending on the situation. These measures have resulted in noticeable impacts on sales regions as well as the production.

Zumtobel said that it cannot assess the economic impacts due to the unprecedented situation as well as the uncertain further development. However, based on the predictable negative developments during the months of March and April, the Zumtobel Group is expecting a decline in revenues for the on-going 2019/20 financial year (May 1, 2019 until April 30, 2020) compared to the previous year.

The goal of an improvement of the adjusted EBIT margin to 3% to 5% remains intact. However, the previously communicated goal of an EBIT margin of roughly 6% for the 2020/21 financial year can presumably not be achieved from today’s perspective.

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