Brenntag Target Lags Behind Estimates as Subdued Demand Persists
Brenntag AG (BNR), the world’s largest distributor of chemicals, forecast annual earnings below analysts’ estimates as global economic uncertainties persist.
Earnings before interest, taxes, depreciation, amortization and one-time items will rise to 710 million euros ($945 million) to 735 million euros this year, the company said in a statement today. Analysts had predicted 742.6 million euros on average, according to data compiled by Bloomberg.
Brenntag, based in Muelheim an der Ruhr, Germany, reported second-quarter profit and sales that missed analyst estimates, saying that market conditions are “challenging.” Earnings in Europe were hurt by an antitrust fine in France for which the company set aside 17 million euros, it said today.
“We do not see the promise of any significant improvement in the macroeconomic environment but we remain positive and confident about the underlying market opportunities,” Chief Executive Officer Steven Holland said in today’s statement.
Operating Ebitda fell 8.3 percent to 169.1 million euros in the quarter, missing a 186.4 million-euro analyst estimate. Sales rose 2.2 percent to 2.54 billion euros, also lagging behind the average estimate of 2.58 billion euros. Net income declined 15 percent to 68.7 million euros.
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