Tower crane manufacturer Yongmao in China has lowered its financial forecast for 2020.
The new forecast is financial guidance for the second half of the 12 months to 31 March 2020 and the ensuing 12 months. For the six months to the end of March 2020 Yongmao said it expected to record a significantly lower net profit compared to the same period last year. The decline in net profits is attributed to lower revenue in China in light of the national lockdown to combat the Covid-19 pandemic in the first quarter of 2020. In addition, the company said it incurred costs when it consolidated its Beijing operation to Fushun where it is headquartered.
At the time of writing in June the company was finalising its group results for the financial year to the end of March and said it would announce them before 29 July.
As a company manufacturing primarily in China, Yongmao said the full and partial lockdowns as a result of the coronavirus Covid-19 disrupted the operations of its customers and of freight forwarders. This led to delays and-or postponement of deliveries.
Production resumed at the company’s production plants in China on 10 February 2020 with approval from the local authority. Implementation of new health and safety measures in the manufacturing facilities means the plant has not been operating at its optimal capacity, Yongmao said.