Tessenderlo shares drop on annual core profit miss, weak outlook (updated)
14/03/2018 08:47
(Adds analyst comments, share price)
March 14 (Reuters) - Belgian chemical firm Tessenderlo
TESB.BR on Wednesday reported a 6 percent fall in annual
recurring core profit to 183.3 million euros ($226.74 million),
sending its shares down more than seven percent at opening.
The company, which supplies liquid, soluble and solid plant
nutrition for agriculture, missed its 2017 target of flat growth
in its recurring earnings before interest taxes, depreciation
and amortisation (REBITDA) and expects 2018 to be in line with
2017.
Its fourth quarter REBITDA fell to 25.6 million euros from
31.8 million euros a year earlier.
The company proposed no dividend for the period.
KBC Securities, which maintained its "hold" rating on the
stock, said the company fell short in its Biovalorization
segment, which combines animal by-product processing like
gelatin, and the Industrial Solutions clusters business, in
charge of the production of plastic pipe systems.
The brokerage also said higher competition and a weaker U.S.
dollar would present headwinds in 2018.
The company had to cut its outlook for recurring core profit
in 2016 and 2017, hurt by currency volatility and higher raw
material prices.
($1 = 0.8084 euros)
(Reporting by Manon Jacob; editing by Jason Neely and Dasha
Afanasieva)
((manon.jacob@thomsonreuters.com; +48 58 772 0920;))