Dormakaba falls on limited guidance visibility, lower dividend

Dormakaba Holding AG

31/08/2022 08:47

** Shares in Dormakaba Holding  DOKA.S  are down around 4%
after the Swiss security group announced guidance until December
only and proposed dividend below last year 
    ** The company expects organic growth slightly above its
mid-term target range of 3% to 5%, but says the guidance applies
only to the first half of the 2022/23 financial year
 urn:newsml:reuters.com:*:nL1N30709C
    ** It says the soaring inflation due to Russia's invasion of
Ukraine and higher labour costs particularly in the Americas
could only partly be offset with price increases in the short
term
    ** Dormakaba will propose a dividend of 11.50 Swiss francs
per share, below the 12.50 francs per share it paid for the
previous year
    ** "The fact that Dormakaba is providing a guidance only for
H1 demonstrates the limited visibility," Vontobel says, adding
that the dividend cut is disappointing
    ** Zuercher Kantonalbank says it seems that the EBITDA
margin of 16% to 18% previously forecast for 2023/24 will hardly
be achievable
    ** The stock is down 33% year-to-date

 (Reporting by Bartosz Dabrowski in Gdansk)
 ((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))