23.11.2020

Snorkel recovery begins

Snorkel’s third quarter results have been published showing a strong pickup compared to the second quarter.

Total revenues for the nine months to the end of September were $86.5 million, 49 percent lower than in the same period last year. The business posted a loss of $9.8 million compared to a profit of $799,000 last year.

Looking at the third quarter, sales were $26.3 million, an increase of 56 percent compared to the second quarter, but 54 percent down on the same quarter last year. The net loss was $2.5 million, compared to a profit of $1.3 million last year.

The results were disclosed by Tanfield which still owns a 49 percent stake in the Snorkel business, although that the subject of legal action by Snorkel owner Don Ahern.

Vertikal Comment

The second quarter was very badly affected by various Lockdowns and supply line issues which disrupted production. The third quarter has clearly picked up since then, as have margins, but it is not sufficient to put the company back into profit. As with other manufacturers Snorkel will almost certainly be looking at 2021 for a return to more normal trading.