AAK: expects higher Q3-2020 operating profit than forecasted

Malmo / SE. (aak) Swedish AAK Group (former AarhusKarlshamn AB) expects to report an operating profit for the third quarter 2020 that is slightly higher than the corresponding quarter last year, well above what was expected at the beginning of the third quarter, and higher than current market expectations. Volumes are still lower compared to last year’s levels but have continued to improve since the end of May 2020. Cost reduction measures initiated early in the second quarter, additional savings from the optimization program communicated at the end of June, as well as a favorable product mix and slightly better volumes have had a better-than-anticipated effect on operating profit. It is too early to have a view on the development for the coming quarters, given the continued uncertainty and volatility. AAK will make further comments on market development and possible effects on the company in connection with the interim report for the third quarter 2020 which will be published on October 22, 2020.