Granges expects slower sales in Q4 2020 and has estimated a low single-digit sales increase in its automotive segment and a mid-single-digit rise in its HVAC and other business segments.
Although the market uncertainty due to the COVID-19 pandemic has reduced, Granges indicated in its Q3 2020 earnings report on Thursday that it is still unable to forecast exact sales volume for the last quarter of the year. However, the company plans to focus on four primary areas: Electrified transportation, thermal management, new rolled products, and new material technologies to improve its profitability.
The aluminum supplier’s sales in the first nine months of the year declined by 8.2pc to 247,400mt from 269,500mt in the same nine-month period last year.
Granges’ automotive sector sales fell by 14pc to 34,900mt in Q3 2020 from 40,600mt in the same period in 2019. The firm’s Americas HVAC and other segments sales rose by 14.7pc to 51,800mt from 45,200mt in the same period under comparison due to higher market activity and a long summer season, according to Johan Menckel, chief executive officer, Granges.
The Swedish company’s consolidated sales in Q3 2020 also rose by 1.1pc to 86,700mt from 86,800mt in Q3 2019.
The company’s net revenue declined by 15.5pc in the January-September period to SEK 7.858bn ($896mn) from SEK 9.295bn during the same period in 2019. Its net revenue in the third quarter dropped by 14.1pc to SEK 2.575bn from SEK 2.998bn in Q3 2019.
The firm’s operating profit also fell by 42.1pc in January-September 2020 to SEK417mn from SEK721mn in January-September 2019. In Q3 2020, Granges’ operating profit declined by 6.6pc to SEK177mn from SEK190mn in Q3 2019.
(SEK 1 = $0.11)