Growing oil prices influenced Europe’s industry landscape

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Growing oil prices influenced Europe’s industry landscape

October 26, 2018 - 16:19
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Growing oil prices influenced Europe’s industry landscape, as such companies as BASF SE, Electrolux AB and LafargeHolcim Ltd. inform about higher production costs, Bloomberg reports.

Photo © Gerd Altmann, CC0 1.0

Growing oil prices influenced Europe’s industry landscape, as such companies as BASF SE, Electrolux AB and LafargeHolcim Ltd. inform about higher production costs, Bloomberg reports.

The fact of growing Brent price by 14% this year is mentioned too often in a row of new earnings reports issued on Friday. Percent of unit cost growth due to oil prices for companies is the highest in recent years. After long period of low prices, this problem is added to necessity to adapt to trade war between the US and China as well as to divorce between EU and the UK.

Shares of most companies fell on Friday. Electrolux lost 14%, BASF 2,1%. LafargeHolcim did not support the trend and grew by 5,4%.

Autoproducers and supplies also complain about rising costs of raw materials that caused decline in sector’s equities. Daimler AG, Renault SA and Valeo SA informed about increasing unit costs as well as about negative effect of slowdown in China and Eruope’s new emission tests.