In the first quarter of 2020, marked by a significant decline in business at the end of the period, Legrand reported a -2.2% fall in sales, reflecting an organic decline (-7.3%) and an adjusted operating margin before acquisitions1 of 18.7%, one point lower than in the first quarter of 2019.
The health crisis has triggered a sharp deterioration in the world economic outlook with a deep recession expected in 2020, leading Legrand to suspend its targets for the year on March 26.
An organic fall in sales was confirmed in April 2020, which saw a retreat of -41% for the month.
On this basis, Legrand anticipates a marked decline in sales in the second quarter of 2020. Subject to a favorable trend in the global health situation, the second half of the year should see a sequential improvement.
Legrand is working actively to ensure continuity of service for customers, whose businesses are critical to keeping the economy functioning. On May 5, 2020, almost all of Legrand’s logistics centers were open and customer care operations (including both sales and service teams) were up and running in most of the geographical areas it serves.
In addition, Legrand is honoring all of its payment obligations, particularly to suppliers, and is maintaining its proposed dividend for 2019 at €1.34, unchanged from the previous year, compared to the €1.42 initially proposed.