New ZWL Zahnradwerk Leipzig GmbH: Early cost reduction and liquidity measures in the first half of 2020 have enabled sustainable recovery since June
^ DGAP-News: Neue ZWL Zahnradwerk Leipzig GmbH / Key word (s): Half-year results Neue ZWL Zahnradwerk Leipzig GmbH: Early cost reduction and liquidity measures in the 1st half of 2020 enable sustainable recovery since June
09/16/2020 / 11:00 AM The issuer is responsible for the content of this announcement.
New ZWL Zahnradwerk Leipzig GmbH: Early cost reduction and liquidity measures in the first half of 2020 have enabled sustainable recovery since June
Leipzig, September 16, 2020 – Neue ZWL Zahnradwerk Leipzig GmbH, an international manufacturer of engine and transmission parts, gears, transmission assemblies and fully assembled transmissions for the automotive industry, saw the COVID-19 pandemic had a significant impact in the first half of 2020 exposed. However, the effects were reduced through numerous early cost-cutting and liquidity measures. This included in particular the use of short-time work, the reduction of temporary workers, the postponement of investments for new projects and the adjustment of the cost structure. Overall, NZWL achieved group sales of EUR 39.2 million in the first six months of 2020 (previous year: EUR 57.7 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) were EUR 2.6 million (previous year: EUR 6.4 million), while the consolidated result was EUR -2.5 million (previous year: EUR 0.9 million) amounted to. However, due to the measures described and the production restart, which went even better than expected, there was already a significant recovery in business development in June 2020. Consolidated sales reached around 89% of the same month last year with a capacity utilization of around 75%. As of June 30, 2020, the NZWL Group had cash and cash equivalents of EUR 11.5 million (December 31, 2019: EUR 13.5 million).
The management looks confidently to the further business development in 2020. In July / August the capacity utilization was already at approx. 80%, while the turnover reached approx. 88% of the previous year’s value. From September, the level of sales before the COVID-19 pandemic will be reached. Overall, sales and earnings should continue to develop positively until the end of the year. Against this background, the management confirms the previous forecast for the 2020 financial year, which envisages a 15% to 20% decline in sales as a result of the COVID-19 pandemic and a consolidated net loss of EUR 1.9 to 2.2 million for the year.
In China, the sister company NZWL International achieved sales of around EUR 14.7 million in the first half of 2020 (previous year: EUR 17.8 million). The operative business has been continuously developing profitably on a monthly basis since April. In August the capacity utilization was around 80%. For 2020 as a whole, sales in China are expected to remain almost at the previous year’s level.
Dr. Hubertus Bartsch, Managing Director of Neue ZWL Zahnradwerk Leipzig GmbH: “The first half of 2020 presented our company with unprecedented challenges, which we successfully mastered thanks to an excellent team performance and our early cost reduction and liquidity measures The recovery that started in June 2020 is sustained is clearly underpinned by the business development so far in the 3rd quarter. We can therefore look to the future with confidence – also thanks to our stable liquidity situation and an order backlog of EUR 83.3 million as of June 30, 2020 . “
The 2020 half-year financial statements of Neue ZWL Zahnradwerk Leipzig GmbH are available for download online at www.nzwl.de in the Investor Relations area.
Contact: Frank Ostermair, Linh Chung Better Orange IR & HV AG Tel .: +49 (0) 89 8896906 25 E-Mail: [email protected]
09/16/2020 Release of a Corporate News / Financial News, transmitted by DGAP – a service of EQS Group AG. The issuer is responsible for the content of the announcement.
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Language: German Company: Neue ZWL Zahnradwerk Leipzig GmbH Ostende 5 04288 Leipzig Germany Telephone: +49 34297 85 202 Fax: +49 34297 85 302 E-Mail: [email protected] Internet: www.nzwl.de
ISIN: DE000A13SAD4
WKN: A1YC1F Exchanges: Regulated Unofficial Market in Berlin, Düsseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1132277
End of announcement DGAP News-Service
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