Incap Ramping Up Factories in India; Outlook for 2021 Remains Unchanged

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Incap announced on 10 May 2021 that it had temporarily closed down its factories in Tumkur until 24 May 2021. On 24 May 2021, Incap announced that the lock-down had been extended until 7 June 2021 and that it had been granted a permission for partial operation of its factories. Currently, the lock-down in Karnataka has been extended until 14 June 2021. Incap’s factories in India have been operating with reduced capacity since 24 May 2021 and Incap continues to ramp up the production to be able to begin full operation on 14 June 2021.

“We are fully committed to support the local government in its actions to contain the virus and to protect the health and safety of our employees. In addition to following strict restrictions guaranteeing social distancing at our factories, we continue to organise vaccination drives in order to help our employees and their families get vaccinated. To support the local community, we have donated computers for the centre that is in charge of the monitoring and controlling the pandemic situation of the Tumkur area. As we are ramping up our production, we will continue to focus on limiting the effects that the current restrictions may have on our customer deliveries,” says Otto Pukk, President and CEO of Incap.

The closure and the partial operations of the factories in India do not have an impact on the company’s outlook for 2021 published on 21 April 2021. Incap’s previously announced outlook for 2021:

Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020.

The increase in revenue and operating profit estimate is driven by the strong development at the Indian factories and the ramp-up of the factory expansion, that has proceeded faster than expected. Furthermore, the visibility related to the customers’ forecasts and the company’s own assessments of the business development has improved.

The estimates are given provided that there are no major negative changes in the coronavirus pandemic situation, currency exchange rates or in component availability and they are based both on Incap’s customers’ forecasts and the company’s own assessments of the business development.