Schmolz+Bickenbach - virus hits order rebound

All,

We are still waiting on the side-lines.

We got the order of magnitude right, but ultimately results were even worse than model and business is picking up more slowly - now even more so with the virus.

Customer inventories have normalised in time with model - at the beginning of the year, but given Covid-19 uncertainties, orders have not picked up as predicted. Thus Order Backlog seems to have bottomed out in Q4 as predicted (before virus considerations). Thus year-end inventory at S+B is also significantly lower and current cash likely better than we have it. 

By division, it is naturally the volatile Quality & Engineering Steel division that drives the underperformance, although all other divisions are also slightly below model. 

The company outlined a further cost saving programme. 

Thus we are curious to hear more about the demand situation on the call this afternoon. 

Wolfgang