COVID-19 impacts on sales, but the company expects their electrics division to grow against a decline in print as the company continues its business transformation.
Turbon AG (Turbon) has released figures for the first half of 2020 and its outlook for the full year and beyond.
The company commented that the measures taken from March 2020 to contain the effects of the Coronavirus pandemic affected both its electrics and printing segment in the second quarter of 2020.
Over the last three years the company has been restructuring the former core business of producing remanufactured laser toner cartridges (printing segment) with and in particular the extensive debt relief achieved in the course of the measures. The company added that it expects the Group will emerge from the COVID-19 crisis as a stronger business.
In the first six months of 2020, the companies in the Turbon Group achieved Group sales of €21.5 million ($25.47 million) compared to €29.5 million ($34.95 million) in the same period last year.
The printing segment accounted for €14.9 million ($17.65 million) compared to the previous year’s €22.9 million ($27.12 million) Within the printing segment €6.6 million ($7.81 million) of business were due to remanufactured laser toner cartridges sales, compared to €13.9 million ($16.46 million) during the same period of the previous year.
Turbon said that the decline in sales in the group of €8.0 million ($9.47 million) exclusively concerned its printing segment.
Earnings before taxes for the printing segment were -€0.6 million (-$0.71 million) compared to -€2.2 million (-$2.6 million) in the same period of last year, whereby within the segment the result in the business with laser toner cartridges was -€0.9 million (-$1.07 million) compared to -€2.5 million (-$2.96 million) in the previous year.
Turbon adopted its forecasts for the printing segment sales, which it now predicts to be in the region of €29.0 to €30.0 million ($34.33 to $35.51 million), revised down from its original forecast of €30.0 to €33.0 million ($35.51 to $39.06 million). In this amount are one-time expenses for inventory devaluations (printing segment, laser toner cartridges) of €0.4 million ($0.47 million) and for brokerage costs in connection with the letting of the property in Hattingen
Turbon AG said that the sale of the properties in Thailand is still planned but the COVID-19 restrictions have delayed this for the time being.
The company sees an ongoing demand for digitalisation in the COVID-19 era and core growth for the electrics division, weaker sales for the printing division especially the sales of remanufactured laser toner cartridges. The company said it will particularly be looking at its investment in Dubai and focus on Berolina’s end-user business.
