- The company estimates earnings growth of 4.5% to 6% next year, compared to 8% previously. It reported that orders at its woodworking machinery subsidiary fell more than 30% year-on-year (for the first three quarters);
- According to the company, the lower order volume has not yet affected the subsidiary's sales due to its substantial order backlog. However, this could lead to underutilization of production capacity and sales losses of around 15% in 2024. The company is implementing cost reduction measures.
- Duerr confirmed its forecasts for the current year and expects to achieve an 8% EBIT margin. In turn, it plans sales growth of 5% to 10% in 2024. In the current quarter, the company tentatively reported sales of €1.15 billion versus €1.22 billion estimates, with a lower than previous quarters 7% EBIT margin.
- Some analysts say that 8% EBIT may be possibe in 2026 vs previous estimated 2024 but medium and long term perspectives for both - Duerr and HOMAG are still positive. Hauck Aufhaeuser analysts trimmed target price for Duerr from 37 to 30 EUR (still 50% above current valuation).
Duerr appears to be another company 'battered' by higher interest rates affecting a weaker consumer and consequently - a slowdown in corporate business (falling machinery orders, caution instead of expanding production capacity, etc.).
Source: xStation5
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