(Alliance News) - Eurotech Spa reported Wednesday evening that it made a loss of EUR4.2 million in the first quarter from a profit of EUR100,000 in the first quarter of 2023.

Revenues of EUR11.9 million, down 50 percent from EUR24.9 million in the same period a year earlier. The U.S. area, the company explained in a note, suffered a sharp decline in the Embedded legacy business due to the phase-out of the area's largest customer, accelerated by the 2023 destocking. The European area suffered from a wait-and-see approach by customers in ramping up ongoing projects. In contrast, the Japanese area declined due to the destocking of its major customers.

Ebitda is negative EUR3.4 million from the negative figure of EUR1.6 million recorded as of March 31, 2023.

Consolidated Ebit is negative EUR4.5 million from positive EUR370,000 as of March 31, 2023, due to depreciation charged to income in the first three months of 2024.

The Net Financial Position results with debt of EUR19.2 million from EUR20.6 million as of December 31, 2023.

As for the future, the company expects the second quarter to show an improvement in sales compared to the quarter just

closed, and with a first margin in line with the figure recorded in the first three months of the year.

In addition, "in the coming months, the reorganization actions of the U.S. operations already carried out in the fourth quarter of 2023 will continue to show their net reduction effect on total operating costs, with a year-on-year benefit at the Ebitda level of approximately EUR1 million," the company concludes.

Eurotech closed 0.5 percent in the red at EUR1.66 per share.

By Chiara Bruschi, Alliance News reporter

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