WashTec saw declines in sales and earnings in the first half of the year due to the effects of the COVID-19 pandemic. The Augsburg-based company puts sales at EUR 175.4 million after EUR 199.1 million in the same period last year. Before interest and taxes, WashTec’s half-year operating profit fell from EUR 9.3 million to EUR 5.2 million. “However, the situation in Europe improved significantly in the course of the second quarter. The decline in order intake in June was only in a low single-digit range, ”said the southern German company. The second quarter of 2020 had sales of EUR 88.1 million and earnings before interest and taxes of EUR 3.5 million.
“The COVID-19 pandemic is affecting our business. However, we also see 2020 as an opportunity and are accelerating the implementation of the performance program that we started last year. In this way, we adapt the structures and processes of society to the new challenges and developments in the market. In the medium term, the goal remains to achieve a double-digit EBIT margin again through the implemented measures, ”says Ralf Koeppe, CEO / CTO of WashTec AG.
WashTec already presented a new forecast for 2020 yesterday and anticipates a decline in sales of between 15 percent and 20 percent. In the previous year, sales of EUR 436.5 million had been achieved. Before interest and taxes, the profit margin should drop from 8.3 percent to a value between 3 percent and 5 percent. Free cash flow should increase, according to WashTec, after having achieved a free cash flow of 15 million euros in 2019.
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