Update based on the current uncertainty
Indutrade is carefully monitoring the effects of covid-19 and is committed to protect the health and safety of our employees, customers and suppliers. We are engaged in close dialogue with our subsidiaries in order to take the necessary measures and to provide them with the best possible support. To limit further spread of the virus in communities, we are following the advice and regulations of the local authorities at the same time as we are committed to mitigate any disruptions for our companies.
Overall, the effects on order intake and sales in the first quarter of 2020 are expected to be very limited. There is substantial uncertainty going forward. The market situation for the Group’s companies varies considerably given that they operate in different segments, industries and geographic markets. Indutrade’s decentralised business model, with a clear accountability for the respective MDs and a strong entrepreneurship, enables the subsidiaries to independently make quick business decisions and adapt to changes in demand.
At present, we have not experienced any significant disruptions in the supply chains and among the subsidiaries with own manufacturing, production is continuing with the exception of two units in Asia, which have been temporarily closed due to local regulations from authorities. However, the situation is changing continuously. A number of our companies have noted a major volume decline and are now taking measures to reduce costs, for instance short-term layoffs, adapted to respective business and country in which they operate. At the same time, we are seeing a strong development with increasing volumes in, among others, the medical technology companies.
Indutrade has a strong financial position and solid foundation in the five-year credit facility established in 2019 and the issued long-term bonds. To further strengthen the financial position, short-term loans in total of SEK 800 million have now been prolonged with more than three years and the long-term credit facilities have been expanded by an additional SEK 750 million. Total long-term loans and credit facilities now amount to just over SEK 7 billion.
An intense work is ongoing to adapt our businesses to the current challenges and opportunities. We have a long-term perspective and based on our decentralized organization, we can maintain the flexibility of a small company while having the stability and financial strength of a large Group.
Stockholm, 7 April 2020
INDUTRADE AB (publ)
For further information, please contact:
Bo Annvik, President and CEO
Phone +46 8 703 03 00
This information is such that Indutrade AB is obligated to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication by the agency of the contact person above at 10.20 a.m. (CEST) on 7 April 2020.