The telecom equipment supplier ADVA Optical Networking now expects a negative proforma operating profit margin in the first quarter due to the corona virus.
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Due to the current situation in China, the management board expects bottlenecks at the company’s suppliers, ADVA said on Tuesday evening in Meiningen-Dreissigacker. Whether and to what extent the situation in China will continue to deteriorate or improve cannot yet be reliably predicted.
However, the Management Board assumes that only a few sales will be postponed to the following quarters and that the decline in the operating profit margin will soon compensate for this in the annual assessment. This is expected to increase further in 2020 and account for over five percent of sales. The proceeds are expected to rise to over 580 million euros in the current year
However, investors were already pulling the ripcord. ADVA’s share price on the Tradegate trading platform plummeted in initial reactions by up to seven percent. In the late evening, the minus there compared to the Xetra closing price from the previous day was 6.08 percent to EUR 7.73.
ADVA also published the first key figures for the fourth quarter in the announcement. Sales increased by 14.9 percent year-on-year to EUR 151.1 million. The pro forma operating result increased from 8.1 (margin 6.2%) to 10.3 million euros (margin 6.8%).
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MEININGEN-DREISSIGACKER (dpa-AFX)
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