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Coface reports a positive net income of €11.3m for the second quarter 2020 and continues to implement its strategic plan07/29/2020
• Turnover for the first semester: €725m, down 0.6% at constant FX and perimeter.
• Client retention and new business achieve record levels, with a positive net production of €33m.
• First effects of re-pricing are now visible (+0.2%).
• Revenues from services progress by 7%, including information services up by 13%.
• Client activities continue to slowdown – a trend expected to continue over the following quarters.
The COVID-19 pandemic has triggered a mobility crisis, mainly because of physical distancing requirements and the necessity to avoid confined spaces, to limit the virus’propagation. This has had a disastrous impact on the global transport sector, with air passenger transport being the most affected segment.
As the COVID-19 epidemic hits the United States very hard, Coface forecasts in its baseline scenario that the country's GDP will contract by 5.6% in 2020, before rebounding by 3.3% in 2021. Nevertheless, this forecast is threatened by the resurgence of the outbreak in several states, which are already pausing or even reversing the resumption of activity after the extensive lockdown of April.
After a 2019 that was dominated by trade tensions between the United States and China, Coface has observed an incipent recovery in Asia (excluding China), supported by supply chain shifts and additional liquidity from the US Federal Reserve.