Natuzzi Provides Update on Impact of Coronavirus on Its Operations
February 24 2020 - 4:44PM
Business Wire
Natuzzi S.p.A. (NYSE:NTZ):
In response to the evolving situation related to the coronavirus
outbreak in China, the Company is following the guidelines of local
authorities as it prioritizes the health and safety of its
employees, suppliers and retail partners. Indeed, the well-being of
our colleagues and friends in China is of paramount importance. We
continue to closely cooperate with local health experts as this
emergency continues.
Our Chinese plant – located in Shanghai - currently serves both
the Asian and the North American markets and represents
approximately one-fourth of our production capacity planned for
2020.
In accordance to safety guidelines, our Chinese plant was closed
for two weeks, in addition to the Chinese New Year holiday period.
While operations in the Chinese plant have just re-started, we
currently expect a gradual return to normal operating conditions by
April.
On the basis of such assumption, the Company expects for 1q2020
a disruptive impact on revenues between €10.0 million and €15.0
million at consolidated level that could be recovered starting from
May 2020.
The situation has been continuously evolving, and as such, these
are our best estimates so far that could materially change if there
is meaningful deterioration from current trends.
As it is customary in the upholstery business, some components
of our production are provided by third-party Chinese suppliers
that are experiencing the same production delay. The Company has
been activating a series of alternative solutions to reduce the
impact of these delays, that could result in extra-costs.
On the other hand, it is too early to estimate the impact to the
consumers’ demand in China, since the magnitude of the impact will
depend on the evolution of the coronavirus outbreak. We are closely
cooperating with our Chinese retail partners to mitigate the impact
on business.
In fiscal year 2019, the Chinese market represented less than
10% of our consolidated sales.
We will provide an updated guidance as we get more
visibility.
CAUTIONARY STATEMENT CONCERNING
FORWARD-LOOKING STATEMENTS
Certain statements set forth in this press release constitute
forward-looking statements within the meaning of the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements involve risks and uncertainties that
could cause the Company’s actual results to differ materially from
those stated or implied by such forward-looking statements. More
information about the potential factors that could affect the
Company’s business and financial results is included in the
Company’s filings with the Securities and Exchange Commission,
including the Company’s most recent Annual Report on Form 20-F. The
Company undertakes no obligation to update any of the
forward-looking statements after the date of this press
release.
About Natuzzi S.p.A.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. is Italy’s
largest furniture house and one of the most important global
players in the furniture industry with an extensive manufacturing
footprint and a global retail network. Natuzzi is the European
lifestyle best-known brand in the upholstered furnishings sector
worldwide (Brand Awareness Monitoring Report - Ipsos 2018) and has
been listed on the New York Stock Exchange since May 13, 1993.
Always committed to social responsibility and environmental
sustainability, Natuzzi S.p.A. is ISO 9001 and 14001 certified
(Quality and Environment), OHSAS 18001 certified (Safety on the
Workplace) and FSC® certified (Forest Stewardship Council).
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version on businesswire.com: https://www.businesswire.com/news/home/20200224005936/en/
NATUZZI INVESTOR RELATIONS Piero Direnzo |
+39.080.8820.812 | pdirenzo@natuzzi.com
NATUZZI CORPORATE COMMUNICATION Vito Basile (Press
Office) | +39.080.8820.676 | vbasile@natuzzi.com
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