Press Releases

24. August 2020

Interim Financial report January – June 2020

The stable demand in the first quarter was followed by an unprecedented second quarter where the demand has been heavily impacted by the Covid-19 pandemic. Revenues were down by 43,6% compared to second quarter last year. In order to mitigate the effect of the dramatic drop in revenues, immediate efforts were taken to reduce costs at all levels in the group. In most of our factories we utilized various governmental support programs. We have also reduced headcount with about 14% with permanent lay-offs. The demand in the first two months of the second quarter were in some segments almost non-existing due to the shutdown of our customers’ operations. The production gradually restarted with a strong recovery in the last month of the second quarter and the production went back to almost the same levels as before the shutdown.

 

Due to the pandemic the market demand is currently hard to predict. However, the short-term demand looks promising with some customers showing even higher demands in the coming months than before the outbreak of the pandemic. This higher demand is probably an effect of pent-up demand following the shutdown period and it is hard to give any estimates about the long-term situation. LEAX is well prepared for rapid adjustments and we are prepared to take further measures to adapt costs if demand changes.
 

Summary of the second quarter of 2020

Net Sales amounted to SEK 279,4 million (495,7)

Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK -1,1 million (33,1)

Earnings before tax (EBT) decreased to SEK -42,8 million (2,3)

Profit margin before tax (EBT%) amounted to -15,3% (0,5%)

Cash flow from operating activities increased to SEK 45,7 million (25,6) Net income for the period decreased to SEK -42,5 million (0,4)

Summary of the first six months of 2020

Net Sales amounted to SEK 701,2 million (1 001,3)

Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 46,4 million (80,6)

Earnings before taxes (EBT) decreased to SEK -23,5 million (21,3)

Profit margin before tax (EBT%) amounted to -3,4% (2,1%)

Cash flow from operating activities increased to SEK 75,9 million (53,8)

Net income for the period decreased to SEK -23,3 million (18,0)





About LEAX:
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The company is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger cars, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group have a turnover of more than SEK 1,8 billion on a yearly basis.

Subscribe

Cookie Settings

This website uses tools and features that may store cookies in your device's browser. More information about this in our Privacy Policy.