European Industrials Companies Warn of Coronavirus Hit -- Roundup
Several European industrials companies warned that they expect
the coronavirus to negatively affect their businesses this week.
Their shares took a battering in the stock market as equities
around the world nosedived on heightened worries around the effects
of the epidemic not just on China's economy, but globally.
Here's what the companies said:
BASF 4Q Profit, Sales Fell; Warns of Coronavirus Hit
BASF SE on Friday warned of the negative effects of the
coronavirus for the current year as it reported lower net profit
and sales for the fourth quarter of 2019.
The German chemical company expects the negative effects of the
coronavirus to have "a significant impact world-wide," especially
in the first two quarters of this year.
This forecast doesn't take a world-wide spread of the virus into
account, it said.
"However, we don't expect the corona effects to be fully offset
during the course of the year," the company's Chief Executive
Martin Brudermueller said.
Renold To Feel Direct Hit of Coronavirus in Operations
Renold PLC said Friday that the outbreak of coronavirus is
having a direct hit on group operations and that limited visibility
in third-party supply chains adds uncertainty in the months
"The impact of coronavirus, with the extended shutdown of one of
our major factories and continuing uncertainty over Chinese supply
chains, has happened close to the end of our financial year and
there is no opportunity to recover the operating profit shortfall
before March 31," the U.K. industrial chains and power-transmission
products supplier said.
Solvay Shares Tumble on 4Q Results; Warns of 1Q Coronavirus Headwinds
Solvay SA's shares fell Wednesday after the company reported its
results for the fourth quarter of 2019, saying it expects the
coronavirus epidemic to harm its first quarter of 2020.
The Belgian chemical company said it expects organic underlying
Ebitda to fall between 0% and 3% on year in 2020, and that it
expects consequences in the first quarter of 2020 from the 737 MAX
production halt, the coronavirus epidemic, and challenges in the
"The impact from coronavirus is estimated to be around 25
million euros ($32.3 million) in 1Q with further updates should the
impacts last longer than expected," said analysts at U.S. bank
Arkema Warns of Coronavirus Hit, 2019 Profit Fell
Arkema said Thursday that adjusted net income and sales fell in
2019 due to a challenging macro environment, and warned it expects
a hit of about 20 million euros ($21.8 million) to its Ebitda at
the end of February due to uncertainties related to the
The French chemicals company said it expects the economic
environment to remain volatile in 2020 and to achieve Ebitda growth
comparable to 2019 levels, excluding the blow of the coronavirus
Morgan Advanced Materials: 2020 to Be Hit by Coronavirus
Morgan Advanced Materials PLC on Tuesday posted a higher net
profit for 2019 but said disruption from the novel coronavirus
would hurt its performance over 2020.
The supplier of ceramic, carbon and composite products said the
coronavirus epidemic led to an extended shutdown of its
manufacturing facilities in China, and it therefore expects a hit
of 7.0 million pounds ($9.0 million) in revenue and GBP3.5 million
in headline operating profit for 2020. It expects group organic
constant-currency revenue in the range of flat to modest growth
over the current year.
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(END) Dow Jones Newswires
February 28, 2020 11:09 ET (16:09 GMT)
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