VIENNA—The Semperit Group expects 2020 to be marked by major challenges, including the effects of the COVID-19 pandemic on its business.
"The weakening of economic development is particularly evident in the industrial sector," Semperit said in a March 20 statement. "(This) will be reflected in weaker sales and results, especially in the first half of 2020."
The Austrian rubber group said that, in addition to production interruptions in China, the coronavirus pandemic is disrupting the supply chain from raw materials, to reduced demand from customers and restrictions in logistics.
Despite presenting opportunities within the group's gloves making unit Sempermed, the outbreak's negative effects on the industrial segment will outweigh gains, Semperit added.
Due to the uncertainties surrounding the outbreak, Semperit said it could not provide estimates for the expected sales and profitability development presently.
The company expects to offer the estimates after publishing its first quarter results in May.