JLT Mobile Computers takes precautionary measures to ensure stability during the prevailing global Corona crisis
A number of proactive efforts and cost savings will make it possible for JLT to overcome the unpredictable market situation and to gear up as soon as circumstances allow it.
Växjö, Sweden, 7 April 2020 * * * JLT Mobile Computers, leading supplier of rugged computers for challenging environments, announces the initiation of a precautionary action program aiming to prepare the operations for the challenges and opportunities which may arise from the ongoing crisis caused by the COVID-19 pandemic. The efforts included in the program will create conditions for JLT to be able to manage the situation at hand in a long-term sustainable manner.
The market situation is highly uncertain and JLT monitors the crisis closely as it unfolds while engaging in close dialogue with suppliers, partners, distributors and customers. Since JLT’s offering often contributes to the latter parts of the customers’ project cycles, the first quarter has not seen any material decline in the order intake (see press release ‘JLT Mobile Computers report development of sales volume for the first quarter 2020’, 2020‑04‑07). However, the order intake is expected to decrease further on in the ongoing corona crisis. In JLT’s sales approach meeting with customers at their respective facilities is an essential component. Given the current circumstances, this is not possible. The sales effort is thus hampered, which is expected to have a negative impact on the sales for some time to come.
JLT has a solid financial position and a strong net liquid position. In addition, the product portfolio is competitive and up-to-date, and the customer base is diversified. A number of precautionary measures have already been taken to minimize the risk of disruptions to the supply capacity, such as increased stocks of componentry and built computers and alternative processes to maintain the production and repair capacity. Thanks to these measures, no supply disruptions have occurred. JLT is thus facing this crisis with a stable foundation, but taking the unsettled times into account and with a view to the company’s long-term prosperity, additional proactive measures are now being taken.
In addition to the already completed efforts, the action program includes an intention to carry out part-time temporary lay-offs of the employees in the Swedish company in accordance with the rules regarding short-time work proposed by the government, and to carry out reductions in staff in the US operations. At the same time, the senior management has decided to cut their salaries by 10 percent. Additionally, the planned costs and investments for the year in every part of the company have been scrutinized to identify possible cost savings and reprioritizations. JLT continues the activities related to the most strategic projects in order to be able to gear up when the crisis fades. The Board of Directors of JLT Mobile Computers has furthermore resolved to withdraw its proposal of dividend for the year (see press release ‘The Board of Directors of JLT Mobile Computers withdraws the proposal of dividend for the financial year 2019’, 2020-04-07).
Good financial stability and the action program detailed above will enable JLT to continue development even in these uncertain times, and eventually to strengthen its market position.
This information is information that JLT Mobile Computers AB (pub) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:10 am CET on 7 April 2020.
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