The truck and train brake specialist Knorr-Bremse has reduced its sales expectation for the current year.
The consequences of the strong euro burdened, the company listed in the MDAX announced on Thursday in Munich. The result forecast and the prospects for the free fundamentally confirmed Knorr-Bremse.
“We are successfully steering through restless times. Above all, our strong after -market business and our strategic measures help to compensate for market weaknesses well and secure our profitability,” commented CEO Marc Llistosella.
The adjusted result before interest and taxes improved by four percent in the second quarter to EUR 262 million in the second quarter, as the company announced on Thursday in Munich. Increases in the train division were responsible for this. In contrast, business with truck continued to suffer from a weak market environment in North America and had to accept considerable losses.
The corresponding operational profit margin in the group improved by 0.6 percentage points to 13.1 percent. For the current year, management continues to strive for 12.5 to 13.5 percent. In the second quarter, the group sales decreased slightly by 0.7 percent to just under 2 billion euros. Here, the management expects 7.8 to 8.1 billion euros – after 8.1 to 8.4 billion.
The share recently rose by 0.58 percent to 87.30 euros via Xetra and continued its good development this year. So far, the course has increased by around a quarter. The reduction in sales goals is not surprising, says UBS analyst Sven Weier. According to Fabio Hölscher from Warburg Research, indicators and outlook largely met expectations.
JPMorgan expert Akash Gupta gave a view of the order book: the order inputs were better than expected. The new business fell by 0.9 percent to 2.1 billion euros due to the weaker truck business. However, the train business pulled almost 13 percent more orders on land. At the end of June, Knorr-Bremse can look at an order pad of 7.3 billion euros, an increase of seven percent compared to the previous year.
The company expects positive effects from the Federal Government’s investment program for further business development. “We are also confident that we can compensate for the announced US tariffs,” said CFO Frank Weber.
/NAS/MNE/MIS
Munich (dpa-Afx)
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