Ursensollen, Germany – Grammer has predicted its revenue in the second quarter of 2020 revenue could be EUR281m, down 45% from EUR517m in the 2019 quarter. It cited the impact coronavirus lockdowns have had on the global economy.
The company, which uses significant amounts of polyurethane foam to make seats and interior components, broke the news in a preliminary earnings statement to the German stock exchange.
It expects to report a group loss of EUR50m in the quarter, down from EBIT of EUR26.12m in the 2019 period.
The company said that coronavirus was the main reason for the significant decrease in revenue and earnings in the quarter. In particular, it said, the closures of locations in Europe and America from March onwards had a major impact.
'Group earnings came under significant pressure from exceptional efforts of around EUR24m,' it added. 'These included the planned optimisation of areas in connection with coronavirus and write-downs of inventories.'
The company has also reduced the value of some project assets, and has made provisions for potential warranty claims.'
The half-year numbers are set to be published on 13 August.
