Gestamp slips on weak 2024 outlook and challenges in North America
28/02/2024 10:21
** Shares of Spanish auto parts manufacturer Gestamp
Automocion GEST.MC fall around 6% after providing
weaker-than-expected 2024 outlook and new restructuring plan in
North America on Tuesday
** Co reported EBITDA of 1.37 billion euros in 2023 vs 1.21
billion euros a year ago, while net profit stood at 281 million
euros vs 260 million euros in 2022
** "(Gestamp's) management expects low-single-digit
outperformance in 2024 on an overall flattish market in the Auto
business, with growth being driven by China, while reported
Ebitda margin is expected to be flat to slightly better in
2024", says JPM
** "This guidance does not assume to build in any negative
raw material impacts for 2024 and excludes extraordinary costs,"
broker notes
** JPM said auto business performance of Gestamp was dragged
down by North America and it expects operational challenges to
persist in the near term
** Gestamp announced it put in place a performance
turnaround plan for the NAFTA region
** Share on track for its worst day in over a year
** Including today's fall the stock has dropped by 15.05%
YTD
(Reporting by Maria Luiza Amaral)
((Mia.Amaral@thomsonreuters.com; +48 58 769 66 00))