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 ahead.

"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 oil-and-gas market.

"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 Citi.

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 coronavirus.

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 epidemic.

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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