08 July 2020
Geelong, Australia, Wednesday 8 July 2020: Carbon Revolution Limited (ASX: CBR) today provided a market update on COVID related demand issues.
This update is further to Carbon Revolution’s ASX releases from earlier this year which noted the impact of COVID-19 on global automotive supply chains and consequent withdrawal of guidance for FY20.
Carbon Revolution CEO Jake Dingle said that until this point it has navigated through COVID related challenges without significant disruption to the business and team.
“We now believe that demand for our wheels in Q1 FY21 will be affected by ongoing factors related to COVID-19. This will result in Carbon Revolution’s sales growth being affected during the first half of FY21.
“In response to this situation we must make difficult decisions to protect the interests of the company, including reductions in the workforce engaged in production activities and the restructuring of shifts to optimise the business for these short-term changes in throughput.
“Notwithstanding this, we expect to deliver sales growth in FY21 and are confident that this temporary change has no effect on the medium to long-term demand for our wheels or on our growth prospects.
“I’m confident that this situation is temporary, and we will get back on track as our customers return to normal operating conditions. I would also like to acknowledge the enormous efforts and resilience of our whole team through such a challenging period for our business and the local community here in Geelong,” Mr Dingle said.
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