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European Companies Continue Reinstating Guidance Amid Coronavirus Uncertainty -- Roundup

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08/07/2020 | 09:32am EDT

By Mauro Orru


This week, more European companies issued new guidance for 2020, while others revised expectations in the wake of the coronavirus pandemic compared with last week. However, several companies are still skeptical when it comes to specific targets as many European countries experience a resurgence of coronavirus outbreaks.

Below is a round-up of outlook statements from the past week.


New guidance:


--AMRYT PHARMA PLC: The Dublin-based, London-listed biopharmaceutical company expects to make revenue of $170 million-$175 million in 2020. This would be up from $154.1 million in 2019.


--COMMERZBANK AG: The German bank expects to post a loss this year "in light of the expected risk result and potential restructuring charges." Risks provisions should be in a range of 1.3 billion and 1.5 billion euros ($1.54 billion-$1.78 billion) in 2020, while the cost base should fall slightly from last year.


--DEUTSCHE LUFTHANSA AG: The German airline expects to book an adjusted earnings before interest and taxes loss in its second half and therefore sees a further significant decline in adjusted EBIT for the year.


--RHEINMETALL AG: The German defense company expects defense sales to grow by 6% to 7% for the year compared with a previous range of 5% and 7%, while its operating margin for the sector should come in around 10%. Rheinmetall said it can't give a precise forecast for the automotive sector due to persistent uncertainties.


--SIEMENS HEALTHINEERS AG: The German medical-equipment maker now expects revenue growth to be broadly flat on a comparable basis during its fiscal year, while adjusted basic earnings per share should come between EUR1.54 and EUR1.62.


Lowered Guidance:


--BAYER AG: The German pharmaceutical and chemical conglomerate lowered its outlook for the year due to the coronavirus pandemic. It now expects sales to be between EUR43 billion and EUR44 billion, and earnings before interest, taxes, depreciation and amortization before special items of around EUR12.1 billion, both on a currency-adjusted basis.


--PIRELLI & C. SpA: The Italian tire maker slightly lowered its 2020 outlook, projecting revenue in a range of about EUR4.15 billion and EUR4.25 billion, from previous estimates of around EUR4.3 billion to EUR4.4 billion, citing greater exchange-rate volatility. The company also expects a 2020 adjusted EBIT margin of around 12%-13%, down from previous estimates of around 14%-15%.


--SOCIETE GENERALE SA: France's third-largest listed bank by assets expects cost of risk for the year to be at the bottom of its 70 to 100 basis points guidance.


Backed guidance:


--FERRARI NV: The Italian sports-car maker backed its guidance for 2020, narrowing it within the previous range to reflect better visibility. It said it now expects revenue for the year to be greater than EUR3.4 billion, adjusted Ebitda to be EUR1.075 billion-EUR1.125 billion and adjusted EBIT of between EUR650 million and EUR700 million.


--INTESA SANPAOLO SpA: The Italian bank expects net income of at least EUR3 billion in 2020 and at least EUR3.5 billion in 2021.


--MERCK KGaA: The German pharmaceuticals and chemicals company backed the outlook it had previously given for 2020, assuming that its business will be affected by the pandemic "to varying degrees," it said. The company guided for a slight increase in net sales to a range between EUR16.9 billion and EUR17.7 billion. It expects Ebitda pre to be in a range between EUR4.45 billion and EUR4.85 billion, with the lower end of that range slightly above previous expectations.


--SIEMENS AG: The German engineering conglomerate continues to expect a moderate decline in comparable revenue for its fiscal year.


--UNICREDIT SpA: The Italian bank confirmed its profits guidance for next year. It also confirmed its guidance for a cost of risk of between 100 basis points and 120 basis points for this year.


Lifted Guidance:


--HIKMA PHARMACEUTICALS PLC: The pharmaceutical company raised its outlook for its injectables and generics divisions. It now sees full-year revenue from its injectables business in the range of $950 million to $980 million, with a core operating margin of between 38% to 40%. In its generics division, the company now sees full-year revenue in the range of $720 million to $760 million, with a core operating margin around 21%, taking into account the expected launch of generic Advair Diskus in the second half of the year.


--INFINEON TECHNOLOGIES AG: The German chip maker now expects revenue around EUR8.5 billion for the year ending Sept. 30 compared with previous expectations of about EUR8.4 billion. Infineon expects a segment result margin for the group of around 13%, up from previous forecasts of about 12%.


--KONINKLIJKE AHOLD DELHAIZE NV: The Netherlands-based owner of grocery chains such as Stop & Shop and Giant Food now expects to report low-to-mid 20% growth in underlying EPS, compared with previous guidance of mid-single-digit range this year.


Withheld Guidance:


--ACCOR SA: The French hospitality group said it doesn't have enough visibility to provide a 2020 Ebitda guidance range.


--ADIDAS AG: The German sporting-goods company said it wasn't able to provide a full-year outlook due to uncertainties around the further development of the coronavirus pandemic.


--ALLIANZ SE: The German insurer didn't provide an updated 2020 outlook for its operating profit due to continuing uncertainties related to the pandemic.


--HSBC HOLDINGS PLC: Europe's largest bank by assets said it would provide an update on its medium-term financial targets and dividend policy when announcing its year-end results for 2020.


--HUGO BOSS AG: The German premium-apparel company expects a gradual improvement in the second half of the year but still can't provide a reliable forecast for 2020 due to continuing uncertainties. However, it expects a credit impairment charge for 2020 between $8 billion and $13 billion. This compared with an earlier forecast made in April, when the bank said it would set aside as much as $11 billion for bad loans this year.


--WOLTERS KLUWER NV: The Netherlands-based information, software and services company said guidance for the whole of 2020 remains suspended as of May due to uncertainty caused by the pandemic.


Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94


Stocks mentioned in the article
ChangeLast1st jan.
ACCOR 4.27% 22.95 Real-time Quote.-47.28%
ADIDAS AG 4.42% 283.8 Delayed Quote.-6.21%
AHOLD DELHAIZE N.V. 0.04% 25.8 Delayed Quote.15.68%
ALLIANZ SE -1.52% 163.06 Delayed Quote.-24.19%
BAYER AG 2.04% 54.96 Delayed Quote.-26.03%
COMMERZBANK AG -2.60% 4.126 Delayed Quote.-23.22%
DEUTSCHE LUFTHANSA AG 1.58% 7.564 Delayed Quote.-54.63%
FERRARI N.V. -0.94% 181.58 Delayed Quote.9.69%
HIKMA PHARMACEUTICALS PLC 2.43% 2530 Delayed Quote.24.06%
HSBC HOLDINGS PLC 1.10% 290.25 Delayed Quote.-51.50%
HUGO BOSS AG 0.46% 21.76 Delayed Quote.-49.93%
INFINEON TECHNOLOGIES AG 0.30% 23.45 Delayed Quote.15.12%
INTESA SANPAOLO S.P.A. -1.80% 1.6122 Delayed Quote.-30.09%
MERCK KGAA 0.73% 124.7 Delayed Quote.17.51%
PIRELLI & C. S.P.A. 2.06% 3.819 Delayed Quote.-27.20%
RHEINMETALL -0.24% 75.08 Delayed Quote.-26.50%
SIEMENS AG -0.60% 112.34 Delayed Quote.-3.02%
SIEMENS HEALTHINEERS AG 0.56% 37.66 Delayed Quote.-12.54%
SOCIÉTÉ GÉNÉRALE -1.18% 11.512 Real-time Quote.-62.44%
UNICREDIT S.P.A. -3.14% 6.745 Delayed Quote.-46.51%
WOLTERS KLUWER 1.76% 73.02 Delayed Quote.10.37%
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