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Corona Crisis Takes Toll on European Toner Remanufacturer Turbon Half Year Earnings.
The consequences of the global corona pandemic have dragged the result down significantly in the first half of the year. (© Turbon)Mainly due to the global corona pandemic, the companies of the Turbon Group had to accept a significant decrease in sales by 27.1 percent to EUR 21.5 million in the first six months of 2020 (previous year period: EUR 29.5 million). The printing core business accounted for EUR 14.9 million (EUR 22.9 million) – corresponding to a decrease of 34.9 percent. Within the printing segment, business with remanufactured laser toner cartridges amounted to EUR 6.6 million (EUR 13.9 million). This has de facto halved compared to the first half of 2019 (-52.5 percent). In contrast, sales in the Electric segment increased slightly to EUR 6.3 million (EUR 6.2 million). The significant drop in sales of 8.0 million
For 2020 as a whole, Turbon calculates consolidated sales between EUR 43.0 and 45.0 million. The original forecast was based on 45.0–50.0 million. In Hattingen, sales of EUR 29.0–30.0 million (originally 30.0–33.0 million) are expected for the Printing segment and sales of EUR 13.0–14.0 million ( 15.0-17.0 million).
Earnings before taxes in the group amounted to EUR -0.9 million in the first half of 2020 (previous year: EUR -2.6 million). This already includes one-off expenses for inventory write-downs in the printing segment of EUR 0.4 million and brokerage costs in connection with the rental of the property in Hattingen of EUR 0.3 million. The result is distributed across the segments as follows: In the Printing division, the result before taxes was EUR -0.6 million (previous year’s period – EUR 2.2 million), with the result from laser toner cartridges in the Printing segment being – 0.9 million euros (-2.5 million euros) and in the rest of the printing area – as in the same period of the previous year – a positive result of 0.3 million euros was achieved. In the Electric segment, a pre-tax profit of EUR 0.6 million was achieved.
In particular due to the effects of the corona virus pandemic, the earnings forecasts for 2020 as a whole have also been adjusted in Hattingen. For the group, earnings before taxes of EUR -1.3 million (original forecast 0.1 million) are now expected. For the printing segment, a figure of EUR -0.9 million is calculated and a positive result before taxes of EUR 1.1 million for the electric segment.
For the medium-term future, Turbon assumes that the Electric segment will benefit from accelerating digitization. In the core printing business, however, continued weaker sales are expected. Therefore, according to a current company announcement, in the coming years the company wants to focus primarily on the business of the investment in Dubai and the Berolina end customer business. In the retailer business with remanufactured laser toner cartridges, however, they want to concentrate even more on the remaining lucrative areas. This means that the ongoing losses in the printing segment should finally be a thing of the past from 2021.
In contrast, the Electric segment plans to accelerate growth – both organically and through acquisitions. With increasing sales, at least proportional growth in earnings is expected. The detailed semi-annual report will be published on August 24th.
Author2020-09-01 at 10:18:53 am
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