Temporary Plant Closures, Some Shorter Hours at Trelleborg due to Coronavirus

  • 2020-04-01 12:00:00
  • Reporter

Mr. Peter Nilsson, President and CEO, Trelleborg AB

The global engineering group focused on polymer technology, Trelleborg AB, says it is undertaking measures to offset the impact of the coronavirus pandemic. The Sweden-headquartered group has seen sales fall, particularly in the latter part of the first quarter of this year, as the global outbreak of the coronavirus has hit the global economy.

According to the Group, earnings trend and cash flow have been relatively stable despite the fall in sales. The group is now undertaking cost-cutting measures to address both costs and cash flow, including shortened working hours, lay-off notices and redundancies, temporary facility closures and reduced investments, and an intensified focus on working capital. The group said all its units have started undertaking local actions that address their unique situation.

Trelleborg says it has a strong financial base, with good liquidity and a long-term confirmed financing in place. The only financial covenant in the syndicated loan facilities is based on the net debt/equity ratio, excluding the impact of IFRS 16 and pension liabilities, which must not exceed 150%. By this definition, the Group’s net debt/equity ratio, by this definition, amounted to 41% at the year-end.

Peter Nilsson, President and CEO of Trelleborg, conceded that there is considerable uncertainty regarding the demand trend for the next quarter. “It is currently impossible to estimate the level of income loss or other direct and indirect effects on the business. Trelleborg has implemented measures and continues to initiate new measures to manage the unfolding events for all of the operations in all areas of the Group,” he said.

Nilsson confirmed that the Group was in close touch with customers and that Trelleborg prioritizes being a reliable and stable partner even in difficult situations.” Similarly, the well-being and safety of our employees are in focus and comprehensive procedures and measures have been activated to prevent the spread of infection,” he added.

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