Mesnac sees Q1 net loss on Covid impact

Qingdao, China – Machinery maker Mesnac posted €5 million (38 million yuan) net loss in the first quarter of 2020, compared with €2 million net profit recorded for the same period the year before.
 
Revenue during the three months to end of March fell by 37% year on year to €58 million, “mainly due to the delay of order delivery upon coronavirus impacts in China and overseas,” said the company’s first quarter report published in April.
 
Mesnac expects its financial results to pick up in the second quarter, but still sees up to €1.3 million of net loss in the first half of the year, compared with €8 million net profit in 2019. 
 
Last year Mesnac generated €373 million revenue, up 4% from 2018, with €10 million annual net profit. Machinery brought in over a third of its sales, while the rest came mostly from synthetic rubber materials.
 
Sales to overseas markets jumped 45% last year and contributed to 17% of the company's annual sales.  According to the machinery maker, exports had a 41% gross profit margin, compared with a 21% margin for the Chinese market.