Coronavirus outbreak to wipe off $70m to $90m from Vertiv’s Q1
The company expects the coronavirus to negatively affect its first-quarter net sales by $70 million to $90 million and adjusted EBITDA by $28 million to $36 million due to shipment and supply chain disruptions.
Vertiv Holdings Co (NYSE: VRT) reported its full-year 2019 financial results with net sales of $4.4 billion, 3.4% higher than 2018, and 5.6% higher on an organic basis when adjusted for changes in foreign currency exchange rates.
The company reported a full-year 2019 net loss of $141 million declined 55% and adjusted EBITDA of $542 million increased 7.8% from 2018 driven by the higher sales and a 50 basis point improvement in adjusted EBITDA margin to 12.2%.
Vertiv finished the fourth quarter with record quarterly orders – a 12% sequential increase from the third quarter and a 3% increase from last year’s fourth quarter.
“We are pleased with our full-year 2019 performance as we delivered financial results consistent with expectations communicated at the end of last year including sales growth, profitability and cash flow,” said Rob Johnson, Vertiv Chief Executive Officer.
“In addition, as a result of our three-year transformation program, we have solidly positioned the company for long-term success.
“We believe our long-term value creation opportunities are manifold, including targeting top-line growth at 1.5x the market, expanding margins 500 basis points – simply to match peers – and gaining differentiated competitive advantage through technology investments.
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“We are excited to execute upon these many opportunities while leveraging the leadership and past success of our Executive Chairman, David Cote.”
Fourth-quarter net sales were flat at $1,172 million, equalling the record quarterly sales from last year’s fourth quarter and organic sales grew 1.0%, with two-year stacked net sales growth of approximately 10%.
David Cote, Vertiv Executive Chairman and former Honeywell CEO, added, “I am proud to serve as Executive Chairman of Vertiv and to have the opportunity to introduce the many successful strategies that served us well at Honeywell and enabled us to increase shareholder value significantly during my tenure.
“I see many similarities between Vertiv today and Honeywell two or three years after I joined in 2002. Vertiv checks all the boxes for me: a great position in a good industry, an ability to differentiate with technology, and significant growth upside for both organic sales growth and margin expansion.
“I firmly believe that with these attributes, coupled with Vertiv’s strong leadership team, we have the opportunity to deliver outsized shareholder returns.”
Johnson added that the company will continue to monitor the dynamic impact of the coronavirus on its sales and operations for both the first quarter and full-year 2020.
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