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Continued Strong Development in NOTE During Q2 and the Plant in Windsor Reopened
May 15, 2020 | NOTEEstimated reading time: 1 minute
At the end of March and in line with the British authorities' decision to limit all unnecessary travel and industrial operations, the Windsor plant suspended production. The plant in Windsor accounts for about 10% of NOTE's total sales. The closure is subject to the UK authorities' support measures, which include, among other things, full compensation for the salary cost of laid-off staff. Based on instructions from the local authorities, NOTE has taken the necessary steps to reopen the plant for production. Capacity utilisation at the Windsor plant is expected to increase gradually during May and June. As previously announced, the temporary suspension of production at the Windsor plant is expected to result in a production loss in Q2 of approximately SEK 20 million.
NOTE's operations continue to develop very strongly and all plants in Europe and China are now operational. Demand in the second quarter remains high, both from customers in the medtech area and other segments. The availability of electronic components is still relatively good. Given the strong order situation, with many new projects in the upturn phase, there are good conditions that sales in the second quarter will amount to approximately SEK 500 million, which corresponds to growth clearly exceeding 10%. Both operating profit and operating margin are also expected to strengthen during the second quarter.
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