Under the epidemic, how strong are the paint giants' desire to survive in order to survive?

The epidemic has a major impact on the second quarter

The giants have a strong desire to survive

McGarry also said, “We continued to implement the previously announced restructuring plan and saved approximately US$20 million in the first quarter
.
We are accelerating other measures and currently expect to save US$80 million to US$90 million in restructuring funds throughout the year
.
We will Continue to evaluate and manage the entire crisis, and will decide whether further cost or restructuring actions are required
.
"

Due to the impact of the epidemic, BASF announced that its members of the Supervisory Board have decided to abandon the 20% fixed salary from April 1 to the end of 2020
.
The executive director of BASF's board of directors will voluntarily give up 20% of the fixed salary in the second quarter of 2020
.
"Based on this year's development, further measures will be considered
.
"

Affected by the epidemic, in addition to the announcement of the suspension of key parts of the company's transformation on March 31, AkzoNobel also announced on April 8 that it will issue 750 million euros of bonds on attractive terms
.
In addition to issuing bonds to raise funds, Akzo Nobel is also taking other measures to protect cash flow
.
"We are closely monitoring the new crown epidemic and taking all necessary measures, including measures to reduce costs quickly and manage cash flow carefully in the short term
.
" Akzo Nobel CEO Thierry Vanlancker said
.

Based on the impact of the epidemic, Axalta has taken swift and decisive action, planning to respond to customer needs to reduce the impact on some of its business areas, including adjustments to the cost structure throughout the organization
.
"We believe that the actions we are taking, coupled with a strong balance sheet and sufficient liquidity, will enable us to
emerge from this crisis in a strong manner, " said Robert Bryant, Chairman and CEO of Axalta
.

Although operating income and profits have increased in the first quarter of 2020, Lipamez (RPM) still took active measures in February this year to enhance its financial flexibility and improve its revolving credit by obtaining US$400 million in term loans.
Available liquidity under the tool
.
In addition, in view of the macroeconomic uncertainty caused by the recent pandemic of the new crown pneumonia epidemic, Lipamez has also suspended its stock repurchase plan
.

"We will continue to evaluate the situation and long-term impact of the new crown pneumonia epidemic
.
In this environment, we will take active measures to manage cash flow by reducing working capital, capital expenditures and disposable expenditures
.
In this regard, the MAP growth plan The timing is lucky for us because we have increased our profit margins and started to see the benefits of reducing working capital plans, which has improved our cash flow this year
.
” said Frank C.
Sullivan, Chairman and CEO of Lipamac.

.

In order to ensure the liquidity of cash on hand, Nippon Paint issued an announcement on April 10 this year, stating that the company has signed agreements with Sumitomo Mitsui Banking Corporation and Mitsubishi UFJ Bank Co.
, Ltd.
on committed quotas and fund borrowing
.

According to the agreement, the two banks granted Nippon Paint's largest unsecured/guaranteed loan of 180 billion yen (approximately RMB 11.
7 billion), with a contract period of 1 year
.
At the same time, Nippon Paint also borrowed 20 billion yen (approximately RMB 1.
3 billion) from two banks
.

From the perspective of major coating companies, the most important thing is to stabilize cash flow
.
Whether it is controlling costs, cutting salaries of executives, and making loans to banks, they are all actively strengthening cash flow management
.
"Faced with the uncertainty brought about by the new crown epidemic, the paint bigwigs have put the quality of profit on a strategic position, and the immunity of the company is reflected in the cash is king
.
" Li Mingyue, an observer of the paint industry, said in an analysis
.

Li Mingyue analyzed that in the face of this extremely special epidemic, coating companies will face more serious challenges.
Companies with insufficient cash flow and low operating efficiency will take the lead in the severe market situation
.
Even for paint bosses with good cash flow, they still have to reconstruct their own cost capabilities, because dealing with uncertainty is a normal ability
.

Li Mingyue said that with the deteriorating conditions of the global coatings industry, the worries of the coating giants are also increasing day by day
.
For coating companies, if they do not have sufficient cash flow, they will be greatly tested in this epidemic
.
The epidemic has caused not only small and medium-sized enterprises to increase cash flow pressure, but also the paint giants
.
Next, how to win this cash flow "defense war" is of utmost importance! (Tu Jie)