Beit Shemesh engine company expects a 15% -20% decline in its revenues

The Beit Shemesh engine company, which is controlled by the Phimi Foundation, reported today (Sunday) that it expects a 15% -20% decline in its revenues for 2020, mainly in the parts sector, following the global corona crisis. Its total revenue for 2019 was $ 171.1 million.
The company notes that as a result, it also expects a decrease in the group's profitability for the entire year, and that it has decided to take a number of different actions, which it did not specify, in order to deal with the expenses side. Two weeks ago, it was revealed in Calcalist that the Beit Shemesh engine factory was laying off 120 workers - about 12% of its workforce.
About two months ago, the company reported its financial results for the first quarter of 2020, in which it showed a 24.4% increase in revenue, along with a 36.8% decrease in net profit. The company's revenue was $ 48.8 million at the time, compared to $ 38.9 million in the same quarter last year, which came mainly from the production of engine parts - $ 39.5 million, and about a third of them - $ 12.7 million, came from one customer, which accounted for 26% of the company's total revenue for the quarter.
 Net income was $ 3.6 million or $ 0.43 per share, compared to $ 5.7 million or $ 0.68 per share in the first quarter of 2019.
Ram Drori, CEO of Beit Shemesh Engines, told Calcalist at the time that the company relies on the civil aviation market, which has 70% of its aircraft fleet grounded, and while the various airlines are making their assessments to maintain the coffers due to the corona crisis. Which has experienced growth of 4% -5% per year, "Drori said." The year 2020 is in high uncertainty, and we do not have a complete picture that allows us to understand the full impact and how the market will return. It can also affect the rejection or cancellation of agreements, even though we are in long-term agreements of 10 and 20 years. It is important to understand that, like other companies like us that worked and did not lay off workers, there is currently no answer from the Treasury. "

Beit Shemesh Engines, which is traded on the Tel Aviv Stock Exchange at a value of NIS 407 million, is also owned by Phoenix Excellence (9.16%), Menora (8.41%), Meitav Dash (8.4%), and Migdal (6.91%), and has decreased by 76.65% since the beginning of the year .