Home 190710 AkzoNobel | BASF warning: a red flag?
190710 AkzoNobel | BASF warning: a red flag?

190710 AkzoNobel | BASF warning: a red flag?

 

No. pages 10

Description

 

 

On Monday 8 July 2019, BASF issued a profit warning for the full year, in which it particularly referred to weak Industrial Production and a slump in Car Manufacturing; two sectors in which the major producers of coatings and paints are active too.

AkzoNobel's 15/20 targets are based upon a CAGR of 2% in revenue up to and including 2020. Last year, the company recorded -/-4% revenue growth and the 1.7% and 2.8% top-line growth we expect for 19FY and 20FY respectively would be insufficient to deliver just that. Hence, the delivery will increasingly depend on the development of the company's gross margin and delivery on OPEX reduction.

In this update, we will assess AkzoNobel's ability to deliver upon the 15 by 20 targets and explore whether our investment case is still intact.

 

 

 

 

 

 

Created Date: Wednesday July 10, 2019 16:38:51
Last Updated Date: Wednesday July 10, 2019 16:38:51
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