|  
Wood-based panels» More news on Wood-based panels

Covid-19 leads to a slump at KAP Industrial

07.12.2020 − 

Tiered measures put in place by the South African Government to combat the spread of the coronavirus have culminated in a sizeable decrease in revenues and earnings for all segments within the conglomerate KAP Industrial Holdings over the last four months of the 2019/2020 financial year (30 June). Group revenues tumbled by ZAR2.474bn because of a Covid-related slump in demand and production stoppages related to the lockdown compared with plans that were updated in March. The assessment of projected revenues had taken account of actual revenues generated between July 2019 and February 2020 and the forecast for the four months from March to June. The Integrated Timber unit - which includes the wood-based panel producer PG Bison and the resin manufacturer and treater operator Woodchem - accounted for a good third of the revenue effect with ZAR822m. Revenues from Integrated Bedding were trimmed by ZAR242m and the Polymer unit faced a ZAR203m reduction; the other ZAR1.207bn came from the other four areas. The Integrated Timber unit suffered an even bigger hit on operating profits. These activities (ZAR427m) accounted for more than half of the total impact on group earnings of ZAR807m.

Tags of this news:

previous − Another growth in German OSB imports in Q3

Dieffenbacher lands several modernisation contracts  − next