StockMarketWire.com - Concrete leveling technology group Somero Enterprises said it had furloughed about a fifth of its workforce, while warning it would miss its revenue expectations due to the Covid-19 crisis.

The company had also cancelling all bonus and profit-sharing payments for the calendar year 2020, a decision it said impacted all employees not on sales commission plans

Combined, the the cost saving measures were expected to save around $5.0m on an annualised basis.

Somero said the Covid-19 pandemic had resulted in current trading falling about 25% below levels required to achieve the market expectation at the start of the year of $90.0m in 2020 revenues.

Still, the company said it remained profitable and cash generative.

It added that it expected to continue to be cash generative, even in a scenario where revenues fel an additional 20% from current levels, to approximately $54.0m.

'Uncertainty around the scale, duration and impact of the Covid-19 pandemic on Somero's end markets in the non-residential construction industry, makes it difficult at this time to provide further guidance on the Company's financial performance in the rest of 2020 and beyond,' Somero said.

'While extended project backlogs reported by our customers prior to the Covid-19 pandemic, particularly in the US, indicate the non-residential construction market was active and healthy entering this period, financial performance for 2020 and beyond will depend on a number variables over which the company has no control.'




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