Viohalco announced that its Sidenor subsidiaries in Greece are temporarily suspending production and assigning plant employees to non-active status from April 2 to May 3.
The company isn’t providing a 2020 guidance because the effects COVID-19 will have on its annual results are still uncertain.
During the production moratorium, commercial activity and raw materials delivery will not be affected.
The measures are expected to minimize impacts on the companies’ costs and liquidities, while protecting their steel supply chains. Presently, Viohalco could not estimate the financial impact.
Viohalco’s consolidated revenue of €4.198bn ($4.632bn) decreased by 5pc from €4.406bn in 2018. Its consolidated adjusted EBITDA of €302mn declined by 3pc from 2018 when its EBITDA was €313mn. Its consolidated EBITDA in 2019 of €273 million decreased by 18pc compared to €332mn the prior year. However, the company’s consolidated profit before income tax declined sharply by 67pc from €96mn in 2018 to €32mn in 2019.
Thirty-one percent was derived from aluminum, 25pc from copper, 14 pc from cables, 19pc from steel, 9pc steel pipes, and the remaining 2pc from other.
Aluminum revenue decreased by 6pc to €1.319bn in 2019 from €1.397bnin 2018. Copper revenue decreased by 3pc to €1.037bn in 2019 from €1.067bn during the prior year. Steel revenue decreased by 11pc from €917mn in 2018 to €816mn in 2019.
Regarding the firm’s adjusted EBITDA, aluminum decreased by 14pc to €105mn in 2019 from €122mn in 2018. Copper revenue decreased by 10pc to €46mn in 2019 from €51mn the year prior. Steel revenue decreased by 26pc from €72mn in 2018 to €53mn in 2019.