Univar Provides Business Update Amid Coronavirus Outbreak

Univar Solutions Inc. (NYSE:UNVR) has provided an update on its business and the actions that it is taking in response to the coronavirus pandemic.

Following the initial coronavirus outbreak in January 2020, the company has developed a focused, global, cross-functional response team, which actively monitors the situation and implements additional safety steps to better protect the well-being of its employees, customers and suppliers.

Notably, Univar and its global response team have taken some immediate and thoughtful measures. These include implementing safe work practice and maintaining distribution center operations at local and regional levels to reduce disruptions and provide a safe and reliable supply of its chemicals and ingredients.

Univar continues to expect adjusted EBITDA of $150-$160 million for the first quarter of 2020. Notably, the company expects to end the first quarter with $700 million of liquidity, which includes more than $300 million in cash-on-hand and additional availability under its committed, asset-based credit facilities.

Univar is withdrawing its earlier provided 2020 outlook on the uncertainties resulting from the coronavirus outbreak. The company plans to offer revised guidance once it gets more clarity on the implications of the coronavirus outbreak on its business.

Univar envisions that it is well-placed both operationally and financially as well as equipped to adapt when circumstances evolve.

The company’s shares have lost 46.2% over a year compared with a 50.3% decline recorded by its industry.

Zacks Rank & Stocks to Consider

Univar currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Franco-Nevada Corporation (TSX:FNV) , NovaGold Resources Inc. (NYSE:NG) and Barrick Gold Corporation (NYSE:GOLD) .

Franco-Nevada has a projected earnings growth rate of 23.6% for 2020. The company’s shares have rallied 46.6% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NovaGold has a projected earnings growth rate of 11.1% for 2020. It currently flaunts a Zacks Rank #1. The company’s shares have surged 104.3% in a year.

Barrick Gold currently has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 41.2% for 2020. The company’s shares have gained 41.1% in a year.

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