Profit-taking, "conservative" guidance, soft volumes trends hurt Bekaert shares

NV Bekaert SA

19/11/2021 11:01

** Shares in Bekaert  BEKB.BR  drop 6.1%, set for worst day
since April 2020, after a "conservative" guidance, and softening
volume trends
    ** The company published Q3 sales of 1.253 billion euros
($1.41 billion), up 27% and maintained its guidance for FY
    ** ING says the guidance implies H2 underlying EBITDA of 175
mln euros vs 285 mln euros in H1 - "we see this as highly
conservative," ING adds
    ** The whole update is "strong", the brokerage adds but
nevertheless flags the rubber reinforcement division volumes
trending negative at -5.2% (compared to +30% in H1)
    ** ING sees the lack of guidance upgrade as well as
softening volume trends set to potentially concern investors
    ** KBC also points to the demand in the rubber reinforcement
division in China and Indonesia tailing off due to softening
domestic markets and lower export sales, hit by container
shortages and freight cost increases
    ** "After the solid performance of the past few weeks, there
is a little bit of profit taking," KBC's analyst Wim Hoste adds
    


($1 = 0.8857 euros)

 (Reporting by Clement Martinot and Kate Entringer)
 ((Clement.martinot@tr.com))