A substantially lower operating profit
Despite its recent acquisitions, Hydratec Industries’ revenue for the first quarter of 2020 was no higher than for the first quarter of 2019. Last year the Food & Industrial Systems companies had a very good first quarter, but this year all the companies achieved lower first quarter revenue. This disappointing revenue level meant Hydratec Industries’ operating profit was also substantially lower.
Plastic Components’ first quarter operating profit was slightly higher than in 2019. Margins were fractionally higher and both costs and revenue were slightly lower. However, the production stop at many car manufactures has led to considerable uncertainty in the automotive market. Expenditure has also declined in other markets. The joint developments of point-of-care diagnostic solutions are attracting more and more interest in the medical market.
In 2019 Food & Industrial Systems had a very good first quarter. By contrast, the first quarter of 2020 was disappointing with all the companies achieving clearly lower revenue than in the previous year. The worldwide measures related to the Covid-19 virus are making it impossible to complete projects in progress and have led to new projects being postponed. Overall order intake within Food & Industrial Systems was at a good level in the first quarter, but it was unequally divided over the various companies.
Bart Aangenendt, CEO of Hydratec: “The COVID-19 pandemic has created considerable uncertainties for our employees and our clients. As always, the safety of our employees is our foremost priority. The pandemic will have negative effects on our revenue, operations, profit and cash flows. Various measures have been introduced or are being prepared. A cost-saving programme has been implemented and investments that are not essential to keep operations running are being postponed.”
Annual Report and AGM
The 2019 Annual Report will be published on 8 May. It has also been decided that the Annual Meeting of Shareholders of Hydratec Industries N.V. will take place on 26 June. The convening notice for the meeting will be distributed in accordance with the applicable regulations.