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Markets News

Spain's Tecnicas Reunidas cuts 2020 sales target amid COVID-19 pandemic

MADRID, Nov 11 (Reuters) - Spanish engineering firm Tecnicas Reunidas on Wednesday lowered its sales target for this year as a result of the fallout from the COVID-19 pandemic on the oil and gas industry.

The company said its most recent internal budget implies sales revenues would be above 3.5 billion euros ($4.14 billion)this year compared with 4.7 billion euros in 2019 and 5.2 billion to 5.5 billion euros forecast in December.

The company, a key supplier to the oil and gas industry, had said it would not meet its full-year sales target in May.

The budget assumes the environment does not get worse in the remainder of the year, the company said, adding it still expected the margin of earnings before interest and taxes would be 3%.

Tecnicas Reunidas said its revenue in the first nine months of the year fell 18% to 2.81 billion euros and net profit shrank 69% to 7.3 million euros.

$1 = 0.8460 euros Reporting by Inti Landauro; Editing by Edmund Blair

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