Trelleborg AB has launched a number of cost-saving measures to maintain a stable cash flow and earnings trend in the wake the global pandemic.
The Swedish group's organic sales for the three months to end of March have been negatively impacted by the COVID-19 crisis, particularly during the latter part of the quarter, Trelleborg said in a statement issued March 31.
In response, Trelleborg has introduced shortened working hours, announced layoff notices and redundancies, carried out temporary facility closures and reduced investments.
"During the latter part of the quarter, the group was increasingly impacted by its own and its customers' temporary plant closures," President and CEO Peter Nilsson said in an interview.
Local official decisions, rapid fluctuations in demand as well as shortfalls in the supply of goods also have led to production levels dropping from "favorable levels," according to Nilsson.
As for demand in the second quarter, Nilsson said uncertainty was "considerable."
"It is currently impossible to estimate the level of income loss or other direct and indirect effects on the business," he added.