Helios Technologies Provides Business Update Due to COVID-19 Pandemic
March 24 2020 - 5:37PM
Business Wire
Helios Technologies, Inc. (Nasdaq: HLIO) (“Helios” or the
“Company”), a global industrial technology leader that develops and
manufactures solutions for both the hydraulics and electronics
markets, today provided a business update surrounding the COVID-19
pandemic and resulting uncertainty. Broad measures taken by
governments, businesses and others to limit the spread of the virus
are adversely affecting the Company and its customers.
Helios’s global locations and production facilities remain fully
operational at this time with the exception of the Company’s Faster
facility in Italy. Government mandates in that country will require
the temporary closure of the Company’s manufacturing location,
which was and will remain open through March 25th for warehousing
and shipping only. Effective March 26th, it will temporarily close
until April 3rd, pursuant to the current mandate. Italian-based
employees whose positions are amenable to remote work will continue
to work from their homes and will continue to provide support to
our customers. Helios is pleased to report that risk mitigation
efforts undertaken in China have resulted in the successful
reopening of its operations there.
Wolfgang Dangel, the Company’s President and Chief Executive
Officer, commented, “We remain focused on doing what is necessary
in an attempt to limit the spread of COVID-19 while protecting our
business and customers. The health, safety and welfare of our
global employees, customers and communities is our top priority and
our obligation. We have been and will continue to be proactive in
this regard. We have adopted measures in all of our facilities to
allow for social distancing and implementation of additional
cleaning protocols while remaining focused on meeting our
customers’ needs. Our office personnel are encouraged to work
remotely, to reduce the risk of spreading the virus from group
interaction. Our global customer service personnel remain available
to respond to customer inquiries.”
As a result of the evolving economic impact of COVID-19, the
Company believes that its 2020 financial results will be impacted,
especially beginning in the second quarter, but the magnitude and
duration of the impact is uncertain. In addition, production at any
of its facilities may be further impacted as a result of possible
future government, market or Company actions due to COVID-19. For
these reasons, Helios is withdrawing its 2020 guidance. The Company
plans to provide an update when it announces its first quarter
results, currently scheduled for May 4, 2020.
Mr. Dangel concluded, “Given our commitment to cash flow and
debt reduction, we entered this downturn well capitalized.
Accordingly, we believe that we are well positioned from a
liquidity perspective to manage the uncertainty in the near to
medium-term.”
About Helios Technologies
Helios Technologies is a global industrial technology leader
that develops and manufactures hydraulic and electronic control
solutions for diverse markets. The Company operates in two business
segments, Hydraulics and Electronics. The Hydraulics segment
markets and sells products globally under the brands of Sun
Hydraulics in relation to cartridge valve technology, Custom
Fluidpower with regard to hydraulic system design and Faster in
connection with quick release coupling solutions. Global
Electronics brands include Enovation Controls and Murphy for
fully-tailored solutions with a broad range of rugged and reliable
instruments such as displays, controls and instrumentation
products. Helios Technologies and information about its associated
companies is available online at www.heliostechnologies.com.
FORWARD-LOOKING INFORMATION
This news release contains “forward‐looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934.
Forward‐looking statements involve risks and uncertainties, and
actual results may differ materially from those expressed or
implied by such statements. They include statements regarding
current expectations, estimates, forecasts, projections, our
beliefs, and assumptions made by Helios Technologies, Inc.
(“Helios” or the “Company”), its directors or its officers about
the Company and the industry in which it operates, and assumptions
made by management, and include among other items, (i) the
Company’s strategies regarding growth, including its intention to
develop new products and make acquisitions; (ii) the Company’s
financing plans; (iii) trends and global conditions affecting the
Company’s financial condition or results of operations, including,
without limitation, the effect of the global pandemic caused by
COVID-19; (iv) the Company’s ability to continue to control costs
and to meet its liquidity and other financing needs; (v) the
declaration and payment of dividends; and (vi) the Company’s
ability to respond to changes in customer demand domestically and
internationally, including as a result of standardization. In
addition, we may make other written or oral statements, which
constitute forward-looking statements, from time to time. Words
such as “may,” “continue,” “remain focused,” “expects,” “projects,”
“anticipates,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” variations of such words, and similar expressions are
intended to identify such forward-looking statements. Similarly,
statements that describe our future plans, objectives or goals also
are forward-looking statements. These statements are not
guaranteeing future performance and are subject to a number of
risks and uncertainties. Our actual results may differ materially
from what is expressed or forecasted in such forward-looking
statements, and undue reliance should not be placed on such
statements. All forward-looking statements are made as of the date
hereof, and we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Factors that could cause the actual results to differ materially
from what is expressed or forecasted in such forward‐looking
statements include, but are not limited to, (i) conditions in the
capital markets, including, without limitation, demand for the
Company’s stock, the interest rate environment and the availability
of capital; (ii) changes in the competitive marketplace that could
affect the Company’s revenue and/or cost bases, such as increased
competition, lack of qualified engineering, marketing, management
or other personnel, and increased labor and raw materials costs,
the continued availability of labor and raw materials as a result
of the global shutdown due to COVID-19; and (iii) new product
introductions, product sales mix and the geographic mix of sales
nationally and internationally. Further information relating to
factors that could cause actual results to differ from those
anticipated is included but not limited to information under the
heading Item 1. “Business” and Item 1A. “Risk Factors” in the
Company’s Form 10-K for the year ended December 28, 2019.
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version on businesswire.com: https://www.businesswire.com/news/home/20200324005777/en/
Karen L. Howard / Deborah K. Pawlowski Kei Advisors LLC (716)
843-3942 / (716) 843-3908 khoward@keiadvisors.com /
dpawlowski@keiadvisors.com
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