European Corporate Roundup: ABB, LVMH the Latest to Issue Warnings
30 Marzo 2020 - 8:17AM
Dow Jones News
By NewsPlus
ABB Withdraws 2020 View As It Expects 1Q Revenue Decline Amid
Coronavirus
ABB said that it is withdrawing its 2020 financial guidance as
it expects lower revenue and operational earnings margins in its
first quarter amid the coronavirus pandemic.
The Swiss engineering company said it wasn't able to assess the
"exact impact" of the pandemic on its first quarter results, but
forecasts revenues in all business segments to decline and orders
to be slightly less hit.
Its operational earnings before interest, taxes and amortization
margins across the divisions are also expected to decline in the
same period.
ABB is accelerating measures to mitigate the hit of the pandemic
with steps such as cutting nonessential costs and adjusting
capacity "ahead of what looks set to be a difficult second
quarter."
In the company's second largest market, China, its three main
production sites in Shanghai, Beijing and Xiamen "have largely
returned to normal" and business is improving.
LVMH Expects Lower 1Q Revenue as Coronavirus Measures Hit
LVMH said that it expects revenue to fall between 10% and 20% on
year in the first quarter, hit by measures taken by authorities
around the world to fight the coronavirus pandemic.
"In the short term, the measures taken by public authorities to
combat the Covid-19 pandemic have resulted in the closure of
production sites and stores in several countries which will have an
impact on the group's results," the French conglomerate said.
"This impact cannot be accurately calculated at this time
without knowing the timing of a return to normal in these
countries."
Unicredit Withdraws Dividend, Buyback-Program Proposals
UniCredit said that it has withdrawn its 2019 dividend proposal
as recommended by the European Central Bank, while also postponing
its share-buyback program.
Unicredit said it is offering to shareholders of the territorial
foundations--that are also shareholders of the bank--interest-free
loans up to the amount of dividends.
(END) Dow Jones Newswires
March 30, 2020 02:02 ET (06:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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