Neles releases information on the impact of the Covid pandemic on sales in the first quarter 2021; market outlook unchanged
Neles Corporation, Stock exchange release, March 24, 2021 at 2:00 pm EET
Neles has decided to temporarily close its Brazilian supply center due to the Covid-19 cases at the location. This measure is taken to protect our employees and their families.
According to the current view, the temporary closure of the Brazilian supply center and the consequent delay in sales recognition to subsequent quarters, and the timing of other deliveries of the order backlog, and exchange rate fluctuations are estimated to have a negative impact on the first quarter sales. Sales are estimated to decline approximately EUR 10 million or more compared to the 2020 first quarter. Delays in sales will be recovered during the rest of the year.
Market activity has improved since the beginning of the year, as anticipated. In line with the previously published market outlook, the first quarter 2021 orders will, however, remain significantly below the level of the comparison period in 2020, which was very strong. The Covid-19 pandemic did not have a significant impact on the first quarter orders in 2020.
Neles’ market outlook published on February 3, 2021 remains unchanged:
We expect the market activity in Pulp and Paper projects to continue at a good level.
Market activity in Chemicals and Oil & Gas projects is expected to continue at a satisfactory level, as it did during the second half of 2020. Postponements of projects and global uncertainties continue to reduce visibility in the Chemicals and Oil & Gas project businesses.
Market activity for the Services and the customer Maintenance, Repair and Operations-driven (MRO) businesses is expected to gradually improve during the second quarter of 2021 from the weak levels of the second half of 2020. Large shutdowns are still being postponed due to the Covid-19 pandemic and customers’ tight cash management.
The ongoing Covid-19 pandemic continues to create uncertainties and risks of abrupt changes in all markets important for Neles.
The market outlook reflects management’s expectation for the next six months unless otherwise stated.
Simo Sääskilahti, CFO
Rita Uotila, VP, Investor Relations
For more information, please contact:
Rita Uotila, Vice President, Investor Relations, Tel. +358 400 954141, E-mail: firstname.lastname@example.org
Neles is one of the leading providers of mission-critical flow control solutions and services for process industries. With our global team of experts and innovative solutions, we help our customers to improve their process performance and ensure the safe flow of materials. Neles is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 576 million in 2020. Neles employs about 2,850 people in approximately 40 countries.