Knorr-Bremse: stock drops 8% after Q2 numbers

(CercleFinance.com) - The share of German braking systems manufacturer Knorr-Bremse is down 8% after publishing Q2 sales of 1,428 million euros, down 21.
3% organically (in line with the consensus of 1,427 million euros).

Oddo reports an operating EBITDA margin of 17.2% (down 190 bps, vs. the consensus of 17.1%), with net profit of 115 million euors, slightly above the 109 million euros expected.

Even so, management is confident in the future. The CFO and the two division managers explained that the last two months have strengthened their confidence in the annual guidance (revenues of 5.9-6.2 billion euros, operating EBITDA margin of 16.5%-17.5%).

Oddo now expects 2020e and 2021e sales of 6,087 million euros and 6,893 million euros respectively, representing an organic decline of 9.9%, followed by a 13.6% rebound. Previously it expected 6,054 million euros and 6,854 million euros respectively.


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