A WORD FROM THE CEO
Financially this year has been very successful, but the joy has been suppressed by the negative consequences followed by Covid-19. The year started very strong in all segments but as of April the sales dropped dramatically in some segments. Turnover for the year is at all time high level and the success is to be found mainly for applications used for infrastructure driven projects such as wind power and energy transmission.
We have been positioned well to grasp good volumes of application to special cables as well as bushings within this area. Applications targeting automotive had a dramatic drop when many car manufacturers closed down during second quarter but, we have experienced a good recovery during quarter four amongst our main customers.
For certain segments, such as applications within food service, the demand is still low due to the pandemic and its related restrictions/limitations. High turnover paired with good cost control and increased focus on working capital have generated good profitability as well as cash flow performance during the year. We have continued to focus on improving quality, flexibility and efficiency in production, with positive results. During the year we have successfully upgraded our big laminator to increase quality and availability.
We continuously take on new challenges to develop new applications. During 2020 we are engaged in more customer driven development projects than in the previous year. For 2021 we foresee a continued good demand for our customized technical flexible laminate applications. We have a good order pace at the end of 2020 and generally positive indications from our customers. Hesitance is mainly related to customers within the food service industry, still facing a weak and unpredictable outlook. We will continue to invest in equipment to meet customer demands, increase capabilities and increase efficiency further.
/ Pernilla Janze, CEO.
IMPORTANT EVENTS IN 2020
- Strong focus on minimizing risk of spreading Covid-19 amongst employees and other stakeholders.
- All time high turnover has caused high activity in terms of fulfilling current demand within the electrification area, and at the same time we have developed applications and production processes to meet new and extended requirements from customers.
- More active sales in the packaging area has generated many interesting trials for customers.
- During the year a thorough work has been performed to set a business plan for the coming years, which was approved by the Board in December.
Skultuna Induflex supplies a number of different customers found in various markets and value chains. Being a material expert with a continuous focus on quality, speed and flexibility Skultuna Induflex has gained long lasting customer relationships over the years.
Through reinforced energy and drive in combination with increased focus on main target segments, the company is well positioned to further strengthen its market position and leverage on the foundation created in the merger. We are closely following and supporting the progress.