Top Stories
China, supply chain issues hurt Beiersdorf adhesives unit’s outlook
Global Banking & Finance Review®
Company
FRANKFURT (Reuters) -Beiersdorf, the maker of Nivea skin care products and Tesa glue, cut the forecast for full-year sales at its adhesives unit on Thursday due to extensive lockdowns in China and ongoing supply chain issues in the automotive industry.
FRANKFURT (Reuters) -Beiersdorf, the maker of Nivea skin care products and Tesa glue, cut the forecast for full-year sales at its adhesives unit on Thursday due to extensive lockdowns in China and ongoing supply chain issues in the automotive industry.
The Tesa adhesives unit, which serves the electronics and automotive markets and accounts for about a fifth of Beiersdorf sales, had been the group’s fastest-growing business in 2021 thanks to growth in the Chinese electronics business.
However, the recent COVID-19 surge in China hurt the unit’s growth in the first quarter, and Beiersdorf said it now expects Tesa to grow sales in the low to mid single-digit range in 2022, compared to its previous target for mid single-digit growth.
“I think the second quarter will be a challenging quarter,” Chief Financial Officer Astrid Hermann told a news conference.
“The electronics business in Asia, so much of it is centered around Shanghai. Reading the news, you will see a lot of the electronics business there is impacted. We have to see how we weather that and how we can rebound in the second half,” she said.
Beiersdorf also confirmed its preliminary first-quarter results published on April 8 and targets for its consumer goods unit announced on March 1.
(Reporting by Zuzanna Szymanska, Editing by Miranda Murray)
A supply chain refers to the entire system of production, processing, and distribution of goods, from raw materials to the final consumer. It involves various stakeholders and processes to ensure products are delivered efficiently.
The automotive industry encompasses all companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. This includes car manufacturers, suppliers, and dealerships.
Financial outlook refers to the anticipated future financial performance of a company or industry based on current trends, economic conditions, and other influencing factors. It helps stakeholders make informed decisions.
COVID-19 is a highly contagious respiratory illness caused by the coronavirus SARS-CoV-2. It led to a global pandemic starting in late 2019, significantly impacting economies and industries worldwide.
Market trends are the general direction in which a market is moving over a period of time. They can indicate shifts in consumer behavior, economic conditions, and industry developments.
Explore more articles in the Top Stories category
