As expected, Q2 saw the impact of the coronavirus substantially impact the results of Bufab.
With the group prioritising protection of health, protection of customers and the protection of Bufab (in that order), Bufab said that it had so far avoided any significant impact on the health of its employees or our own operations, and to supply its customers without disruption throughout the crisis.
However, due to significant shutdowns and capacity reductions in the manufacturing industry worldwide, Q2 sales were considerably impacted.
Bufab’s organic sales growth in May was approximately -25% (April -30%), adjusted for the number of working days. Total sales growth in May was approximately -10% (April -20%), adjusted for the number of working days.
During the month, Bufab saw a gradual recovery of demand from customers in Europe and North America, but from low levels and to some extent slowed by inventory adjustments. The group expects this trend toward a recovery to continue in June.
All of Bufab’s subsidiaries have adjusted their cost bases to meet the drop in demand. This includes short-time work schemes, balancing the number of hours worked with organic growth. “We are seeing good effects of these and other measures on our cost base,” said Bufab.
Jörgen Rosengren, Bufab’s President and CEO, added: "This is a difficult period for everyone. We are happy to see that we have managed to keep our staff and partners healthy and safe, and to continue to provide uninterrupted supply to our customers worldwide. We have been forced to take tough measures to reduce cost, and these are now showing good results. I’d like to again thank all team members for their excellent teamwork, customer focus and personal dedication in these tough times.”
Bufab is closely monitoring the development and adjusting measures accordingly.
