NORMA Group has reported a 21.2% decline in sales to €445 million in the first half of 2020 (H1 2019: €564.7 million). Organic sales declined by 21.7% and adjusted EBITA fell by 94.3% year-on-year in the first half of 2020 to €4.6 million (H1 2019: €80.6 million).
NORMA states that the operating result was strongly influenced by the effects of the corona pandemic in the first half of the year. In addition, the expenses incurred as part of the ‘Get on track’ transformation program had a negative impact on the operating result. The expenses from the program amounted to €22.1 million in the first half of the year and were not adjusted.
Dr Michael Schneider, CEO of NORMA Group, commented: “The first six months of the current year were dominated by the developments of the corona pandemic. Like many other companies, we too had to partially shut down or interrupt our production. We are now gradually returning to a new working routine. However, due to the continuing high level of uncertainty regarding economic development and the corona pandemic, we cannot yet issue a forecast for the current fiscal year.”
Sales decline in all three regions
Sales declined noticeably in all three regions EMEA (Europe, Middle East and Africa), Americas and Asia-Pacific. The decline in sales is mainly due to the restrictions associated with the corona pandemic. The automotive industry has been hit particularly hard by these. Among other areas, this affected NORMA Group’s EJT business (Engineered Joining Technology). The Americas and EMEA regions were affected in particular, while business activities in the Asia-Pacific region recovered noticeably in the second quarter following the end of the lockdown in China.
The impact of the corona pandemic also affected NORMA Group’s DS business (Distribution Services). All three regions recorded a decline in sales in this area in the first half of the year. Only the US subsidiary NDS, which specialises in water management, made a positive contribution to sales by recording organic sales growth of 4.4% in the first half of the year.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
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