Brenntag Trims 2013 Profit Forecast Range on Economic ConcernsSheenagh Matthews
Brenntag AG, the largest distributor of chemicals, trimmed its full-year profit forecast range amid worries about the strength of economies and after missing analyst estimates for quarterly profit and sales.
Earnings before interest, tax, depreciation, amortization and one-time items will now be between 710 million euros ($959 million) and 725 million euros, the Muelheim an der Ruhr, Germany-based company said in a statement today. Previously the company had forecast as much as 735 million euros.
Chief Executive Officer Steven Holland is pushing growth through acquisitions, announcing four this year in India, Australia and North America. The company saw no “tangible” upturn in markets in the quarter and continued to face “challenging” economic conditions, the CEO said today.
“The efficiency measures we initiated in the previous year are now taking effect” in Europe, Holland said in the company’s quarterly report. “Cost management is running well. In future, we continue to systematically press ahead with our acquisition strategy.”
Ebitda excluding extraordinary items gained 9.1 percent to 183.2 million euros in the third quarter. Analysts had predicted 183.8 million euros on average, according to data compiled by Bloomberg.
Sales rose less than 1 percent to 2.49 billion euros and net income increased 3.1 percent to 80.9 million euros. Both measures missed analyst estimates, the survey showed.
Brenntag, which distributes chemicals for Evonik Industries AG and supplies Bayer AG with sulfuric acid, has gained 22 percent this year, boosting the company’s market value to 6.2 billion euros.