Turkish carmaker Tofas slips after Q2 profit miss, outlook cut

Tofas Turk Otomobil Fabrikasi

02/08/2024 09:02

** Shares in Tofas  TOASO.IS  drop more than 3% after the
Turkish automaker cut its annual targets and reported Q2 net
profit below expectations
    ** Tofas Q2 net profit slumps to 1.29 billion lira ($38.88
million) from 6.91 billion lira a year earlier, missing a
consensus estimate of 1.5 billion lira
    ** "The deviation was due to weak pricing, low volume and
softer that expected margins," brokerage Yatirim Finansman says 
    ** J.P.Morgan says the Q2 net income also missed the
broker's lower estimate by 5%
    ** Tofas cuts 2024 export guidance to 40,500-50,000 units
from 60,000-70,000 units, and local sales target to
120,000-140,000 units from 140,000-160,000 units
    ** JPM says the guidance suggests the weak volume
performance vs 2023 will continue for the rest of the year
    ** "We expect shares to underperform today with our focus
shifting to the new project production timetable and the timing
of the acquisition of Stellantis  STLAM.MI  distribution assets
in Turkey that should strengthen company's investment case into
2025" -JPM says
    ** The stock is among worst performers on Turkey's BIST 100
index  .XU100  which falls 1.64%

($1 = 33.1790 liras)

 (Reporting by Canan Sevgili)
 ((canan.sevgili@thomsonreuters.com))