AS VALMIERAS STIKLA ŠĶIEDRA would like to announce that due to coronavirus (COVID-19) related shifts in the market the Company has revised its budget and estimates sales decrease by overall 20% for 2020, reaching the most significant decrease in May and June.
The GROUP’s parent company VALMIERAS STIKLA ŠĶIEDRA AS has closed first quarter with a strong net turnover of 26.4 million euro, which is 89 thousand euro less than in the same period last year, and lags behind the planned sales amount by 3%. The provisional consolidated turnover of VALMIERA GLASS GROUP in the first quarter of this year indicates 34.3 million euro, which is 4.5% less than last year. Meanwhile, both the Company's and the GROUP'S EBITDA and net profit show a positive trend compared to the same period in the previous year (the graphs of financial indicators available in the annex).
Although the results of the first quarter of this year show only slight deviations from the budget plan, the Company expects declining sales in automotive and composite segments in the markets of Asia and Europe, as well as significant decrease of demand in the construction segment in all Italy, Spain, France and Eastern Europe, meanwhile moderate decrease in other European countries. Moderate decrease is observed and also further estimated for thermal insulation segment. It is also expected other regions – North America and CIS - to negatively affect sales as an outcome of the virus restricting measures. The revised forecast is going to be enclosed in the general business plan of the Company.
In the meantime, the Company emphasizes that manufacturing processes continue according to the newly revised production plan, and all supplies of the raw and other materials are being delivered without any interruptions, and delivery delays for customers are not anticipated.
At the moment the situation is considered as temporary and there is not planned layoff of employees for economic reasons. The Company plans to overcome this difficult situation by mutual agreements with employees for temporary reduction of working hours and higher flexibility in the work flow arrangements. The Company highly appreciates understanding and solidarization of employees in this uncertain situation.
To ensure employee and public health The Company continues to maintain preventive measures to reduce the risk of virus spread. The Employees have been asked to be prudent and implement recommendations from the Disease Prevention and Control Centre and the Ministry of Health. Employees have been provided with personal protective equipment, cleaning and disinfection agents, facilities are being cleaned and disinfected with greater frequency, employees have been asked to keep their distance and avoid physical contact with other persons, and to use IT solutions to hold remote meetings and maintain communication. The Company does not have any positive cases of coronavirus.
The management is closely monitoring the internal and external situation, and is ready to take countermeasures. AS VALMIERAS STIKLA ŠĶIEDRA will continue to provide information about important events and the latest developments at the Company.