Duerr slides after 2024 EBIT margin forecast revision
20/10/2023 06:46
** Shares in Duerr DUEG.DE are seen down 10% in premarket
trade after the German machinery maker warned it would miss its
2024 target of an 8% EBIT margin due to a "strong decline" in
order intake at its HOMAG unit
** ** The group confirmed its 2023 EBIT margin target of
6.0-7.0% before extraordinary effects, but lowered its target
for 2024 to 4.5-6.0%, with sales growth of 5-10%
** Orders at HOMAG fell by 32% in the first nine months of
the year due to the "continued downturn in the market for
woodworking machinery", the company said in a statement
** The achievement of the 8% target margin previously
forecasted for 2024 requires business at HOMAG to recover and is
expected for 2026 at the earliest, it added
** "Warning for FY24 not unexpected, but clearly worse than
feared," a local trader says, adding early quote might be "very
low" as the news exacerbates an already downtrending share price
** Stock is down 25% ytd
(Reporting by Anna Mackenzie)
((Anna.mackenzie@thomsonreuters.com))