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Delo reports higher revenue despite COVID-19 disruption

June 17/2020

MOSCOW (MRC) -- Delo (Windach, Germany), a manufacturer of high-tech adhesives and other functional materials, says revenue for the fiscal year ended 31 March increased by almost 5%, to EUR163 million (USD179 million) from EUR156 million in the previous year, according to Chemweek.

The company says that its fiscal fourth-quarter performance also contributed to the positive result, despite the worldwide restrictions due to the pandemic caused by the coronavirus disease 2019 (COVID-19). Earnings and quarterly figures have not been disclosed.

We felt the effects of the slowdown in the global economy during the last fiscal year. What is remarkable is that we managed to finish the last quarter of our fiscal year above expectations despite the massive coronavirus restrictions and worldwide production shutdowns, says Wolf Herold, managing partner at Delo. This is mainly due to our Asian customers who were increasingly building up stocks in order to be independent from possible local restrictions.

Europe excluding Germany, and North America, together accounted for a third of Delo's sales, with China and the rest of Asia excluding Singapore together accounting for another third, and Germany and Singapore accounting for 18% and 14% of sales, respectively, Delo says. China, as well as South Korea and Italy are the countries in which the company recorded the strongest increases in sales. The consumer, automotive, and industrial electronics industries remained the most important consumer sectors in driving growth, the company says.

Delo's outlook for the current fiscal year is cautiously optimistic. We have coped well with the coronavirus crisis so far and are doing everything we can to keep it that way", says Herold. If the global economy continues to recover and no further shutdowns occur, we could see an increase in sales by the end of this fiscal year.

Delo has subsidiaries in the US, China, Singapore, and Japan. It employs 800 people with 710 based at its headquarters. The company says that a 4,800 m2 building for the development and production of dispensing and curing devices has been put into operation recently and a new production hall with an area of more than 8,000 m2 has been handed over.

We remind that PPG Industries has recently announced a plan to cut about USD160-170 million/year in costs in an effort to reduce the companys cost structure due to the impact of the COVID-19 pandemic. The plan includes staffing reductions, under a voluntary separation program, in the US and Canada.

As MRC informed earlier, Russia's output of products from polymers grew in April 2020 by 11.2% year on year due to quarantine restrictions. However, this figure increased by 3.4% year on year in the first four months of 2020.  According to the Russian Federal State Statistics Service, April production of unreinforced and non-combined films decreased to 107,000 tonnes from 110,400 tonnes a month earlier. Output of films products grew in the first four months of 2020 by 12.5% year on year to 402,800 tonnes.
Author:Margaret Volkova
Tags:North America, profile extrusion, petrochemistry, profiles, adhesives, paints and coatings, PPG, Germany, Rossiya, Singapore, Japan.
Category:General News
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