By Giulia Petroni
This week, a number of European companies came out of hiding
regarding 2020 guidance, offering new targets or revising previous
ones in the wake of the coronavirus pandemic. Other companies,
however, are still on the sidelines, citing lingering uncertainties
and low visibility as new outbreaks spread across Europe.
Below is a round-up of outlook statements from the past
week.
New guidance:
--BT GROUP PLC: The U.K. telecommunications group issued
full-year guidance, saying it expects adjusted earnings before
interest, depreciation, taxes and amortization for the year ending
March 31, 2021 to be between GBP7.2 billion and GBP7.5 billion.
Adjusted revenue for the year is expected to fall between 5% and
6%.
--NESTLE SA: The Swiss food and beverage giant expects organic
sales growth between 2% and 3%. It also expects its underlying
trading operating profit margin to improve and an increase in
underlying earnings per share in constant currency and capital
efficiency.
Lowered Guidance:
ENGIE SA: The French energy company expects net recurring income
between EUR1.7 billion and EUR1.9 billion and capital expenditure
at between EUR7.5 billion and EUR8 billion, assuming a continued
and gradual return to normality across geographies. The company
withdrew guidance in April.
FRESENIUS SE & CO. KGAA: The German health-care company
expects sales growth of 3% to 6% at constant currencies and net
income growth of between minus 4% to positive 1%. The company had
previously guided for sales growth of 4%-7% and net income growth
of 1%-5%, both at constant currencies.
LEONARDO SPA: The Italian aerospace-and-defense company expects
2020 revenue between EUR13.2 billion and EUR14 billion, and orders
between EUR12.5 billion and EUR13.5 billion. Guidance assumes no
virus resurgence or further lockdowns. Leonardo suspended its 2020
guidance in May.
MTU AERO ENGINES AG: The German engine manufacturer released new
guidance, saying it expects revenue between EUR4 billion and EUR4.4
billion, compared with EUR4.6 billion in 2019. Adjusted EBIT margin
is expected between 9% and 10%, down from 16% the prior year. MTU
Aero scrapped guidance in March, having previously expected revenue
and adjusted earnings before interest and taxes for 2020 to grow at
a high single-digit percentage.
SCHNEIDER ELECTRIC SE: The French energy-management group now
expects revenue to fall between 7% to 10% organically, and adjusted
earnings before interest, taxes and amortization margin to fall by
between 50 basis points and 90bps organically, implying a margin
between 14.5% to 15%.
SIEMENS GAMESA RENEWABLE ENERGY SA: The Madrid-listed turbine
maker guided for revenue between EUR9.5 billion and EUR10 billion
and its EBIT margin before PPA and integration and restructuring
costs to fall between -3% and -1%. This equates to a reduction of
EUR1 billion in revenue and EUR200 million-EUR250 million in
profitability compared to the previous guidance, which was
withdrawn in April.
Lifted Guidance:
DELIVERY HERO AG: The German food-delivery company raised
revenue guidance to a range of between EUR2.6 billion and EUR2.8
billion. It had previously targeted revenue of between EUR2.4
billion and EUR2.6 billion.
NOKIA CORP: The Finnish telecoms giant lifted full-year guidance
as profitability and cash generation strengthened. The company now
expects 2020 adjusted earnings per share of EUR0.25, plus or minus
5 cents, and an adjusted operating margin of 9.5%, plus or minus
1.5 percentage points, from EUR0.23 and 9% respectively.
SANOFI SA: The French pharmaceutical company raised guidance for
business earnings per share for the year. It now expects business
EPS to grow between 6% and 7% at constant exchange rates for 2020,
up from a previous forecast for a 5% rise.
Backed guidance:
ASTRAZENECA PLC: The British pharmaceutical giant said 2020
guidance remains unchanged, and that it continues to expect total
revenue to increase by a high single-digit to a low double-digit
percentage and core EPS to increase by a mid-to-high-teens
percentage.
ATOS SE: The French IT company backed its guidance for 2020,
assuming a progressive recovery over the second half of 2020 and
2021. This includes a revenue fall of between 2% and 4%
organically, an operating margin rate at 9% to 9.5% of revenue and
free cash flow of between EUR500 million and EUR600 million. Atos
cut its targets in April due to the coronavirus pandemic.
GLAXOSMITHKLINE PLC: The British pharmaceutical giant maintained
its 2020 adjusted EPS guidance--a decline in the range of 1% to 4%
at CER--but said there are still some risks to its business
performance over the year, for example the timing of a recovery in
vaccination rates.
SAP SE: The German software company reiterated its 2020 outlook,
saying it expects operating profit to be in a range of EUR8.1
billion to EUR8.7 billion at constant currencies, and total revenue
in a range of EUR27.8 billion to EUR28.5 billion at constant
currencies.
TELEFONICA DEUTSCHLAND HOLDING AG: The German telecommunications
company backed its full-year revenue and operating income guidance
and said it is on track to achieve its expansion targets. It added
it expects revenue for 2020 to be flat or slightly positive on the
year. Oibda is forecast to remain stable or slightly positive on
the year too, it said.
VOLKSWAGEN AG: The German car maker didn't provide detailed
guidance for the year. It confirmed its previous outlook comments,
expecting full-year sales to be "significantly" below prior-year
level and operating profit to be "severely" below last year's
figure but still positive.
Withheld Guidance:
AIRBUS SE: The European plane maker said it still won't issue a
new guidance for the year as visibility remains low, particularly
in regard to deliveries. Full-year guidance was withdrawn in
March.
BASF SE: The German chemical company said it still couldn't
provide a full-year outlook and added it doesn't see third-quarter
EBIT before special items improving significantly on quarter,
partly due to generally lower demand in August. The 2020 outlook
was withdrawn at the end of April.
ESSILORLUXOTTICA SA: The Franco-Italian optical giant said it is
unable to reinstate guidance for the year as the situation is too
volatile, after scrapping it in March.
WACKER CHEMIE AG: The German chemical company refrained from
providing specific guidance for the year. However, it said it
expects sales, Ebitda and Ebitda margin to be below 2019 levels.
Net cash flow is expected be higher.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
July 31, 2020 09:48 ET (13:48 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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