Incap temporarily reduces its capacity in the UK and withdraws its outlook for 2020

Incap Corporation                                            March 24, 2020 at 19:00
Stock exchange release
Insider information

Incap temporarily reduces its capacity in the UK and withdraws its outlook for 2020

Following new strict guidelines announced by the British government on Monday 24 March to contain the COVID-19 pandemic in the UK, Incap will temporarily reduce the operations of its Straffordshire factory in the UK to focus on production of medical and scientific instruments only. The rest of Incap’s local manufacturing capacity will be closed down for three weeks until 14 April 2020 in order to reduce the spread of the virus.

On 23 March, Incap announced the close down of its production unit in Tumkur, Karnataka, India until end of March 2020. Due to the Indian government’s latest nationwide lockdown announced now, the close down of the Tumkur unit has today been extended until 15 April 2020. 

As a result of current uncertainty relating to the COVID-19 pandemic, Incap withdraws its current guidance for 2020. General uncertainty about overall economic development has weakened the predictability and it is currently too early to quantify the impact on Incap’s financial performance.

Incap’s outlook, issued in the Financial Statement Release on 26 February 2020, was:

“Incap estimates that following the acquisition of AWS Electronics Group Incap’s revenue will be significantly higher than in 2019 and operating profit (EBIT) slightly higher than in 2019 as there will be one-time integration and transaction costs (for example purchase price allocation amortization). The estimates are given provided that there are no major changes in currency exchange rates or in component availability. Incap's estimates for future business development are based both on its customers' forecasts and on the company's own assessments.”

Incap continues to closely monitor the situation in all its markets and follows the instructions provided by the local governments and health protection agencies.

"The health and safety of our employees, customers, and partners are our highest priority. Our focus, dedication, and support are unwavering as we navigate through these extraordinary times. Despite the current uncertainty, our trust and belief in the long-term prospects of Incap remain unchanged", said Otto Pukk, President and CEO.

For additional information, please contact:
Otto Pukk, President and CEO, Incap Corporation, tel. +372 508 0798

INCAP IN BRIEF
Incap Corporation is an international contract manufacturer. Incap's customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. After the acquisition of AWS Electronics Group in January 2020, Incap has operations in Finland, Estonia, India, Slovakia, U.K and Hong Kong, and the company employs approximately 1300 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.