TomTom has withdrawn its expectations for 2020, but that is no big surprise, according to ING analyst Marc Hesselink. The navigation company announced this on Tuesday before the market. Before the corona outbreak, the company was already expecting a 5 percent decline in sales. Now, according to the company, it is impossible to predict what this year will look like. Several car factories are closing down and the company can therefore sell fewer products to them.

According to the original forecast, the company anticipated a revenue decline of about 2020 percent for 5. Free cash flow was initially expected to be 5 to 10 percent of sales. CEO Harold Goddijn spoke in an explanation of unprecedented times, so that a new outlook for 2020 cannot yet be issued. 

The CEO indicates that TomTom has a strong balance sheet, which means the company is well positioned to cope with the current circumstances. W.el the company decided to halt the share buyback program as of today. In the meantime, 2,35 million own shares had been repurchased for 16,6 million euros. At the end of March, the company had no debt and 435 million euros in cash. The TomTom share has fallen by 60 percent since the peak.

Also read: TomTom signs deal with Microsoft Connected Vehicle Platform