Lanxess has announced that it expects its core income to decline in 2020 as the global coronavirus epidemic is expected to damage its supply chains.
The company forecasts that profit before exceptional items will slash EUR 50-100 million ($56.4-112.8 million) as a result of coronavirus, with EUR20 million ($22.6 million) impact projected for the first quarter. However, the company anticipates its operating business will remain stable for the year.
2019 Results
The fourth-quarter core profit before exceptional items stood at EUR197 million ($223.5 million), slightly above the EUR185.8 million ($209.5 million) forecast by analysts on average in a consensus provided by the company.
The specialty chemicals producer managed to increase earnings before interest, taxes, depreciation and amortization (EBTDA) before exceptional items in 2019 to EUR1.02 billion ($1.15 billion), up from EUR986 milllion ($1.11 billion) in 2018, despite the weak environment through 2019.
2020 Forecast
For the full-year 2020, Lanxess said it forecasts its EBTDA to come in at EUR0.90 billion to EUR1.0 billion ($1-1.13 billion), including an impact of the coronavirus epidemic outbreak of EUR50-100 million ($56.4-112.8 million).