VIENNA—Semperit's annual result for 2020 is expected to be significantly higher than the previous year.
Earnings (EBIT) are expected to come in between $124 million and $180 million for the full year 2020, compared to a loss of $18.6 million in 2019, the company said.
The forecast depends on "the further development of the price level for medical protective gloves and the sufficient availability of raw materials for their production." It also comes despite the current impact of global recession on the group's industrial unit, which has intensified in recent months due to the worldwide lockdown, Semperit said.
"The results of the Industrial Sector of the current financial year will, therefore, be noticeably below the previous year's level," said the group statement.
Semperit indicated its half-year fiscal report would include adjustments for "reversals of past impairment losses or impairment losses" in both business sectors. The company has seen significant growth in demand for its medical protective gloves and a strong rise in pricing since the outbreak of the coronavirus pandemic.
However, Semperit emphasized that its Jan. 28 decision to focus on its industrial rubber business in the future and separate from the medical business "is still valid."
"The emerging effects of the global pandemic are considered to be limitedly sustainable," Semperit said.