DVS Technology - Machine tools market under pressure

Significantly weaker markets and increased costs ahead of a ramp up in production, drove DVS TECHNOLOGY’s 2019 revenue and reported EBIT down 1% and 49%, respectively. A comprehensive cost and efficiency plan was initiated after the H119 results and should bring savings in 2020. The coronavirus crisis has materially worsened the economic outlook and management now expects 2020 revenues and EBIT to be significantly lower compared to last year. The market contraction is also affecting the company’s financial position, but management has stated that its financial resources should be sufficient to meet its existing payment obligations.