Qualcomm grows rapidly thanks to smartphone business – Ford increases revenues by 50 percent and confirms profit targets

Munich-based truck and rail supplier Knorr- Bremse is reducing its profit expectations for the current year due to its withdrawal from Russia and the slowdown in the Chinese market. In the second quarter, earnings before taxes (EBIT) collapsed by a quarter to around 182 (previous year: 244) million euros, although sales remained stable at 1.73 billion euros. The operating return on sales (EBIT margin) shrank to 10.5 from 14.1 percent. That was below the expectations of the analysts, the brake manufacturer said on Wednesday evening. For the year as a whole, an EBIT margin of only 10.5 to 12.0 percent is to be expected; previously Knorr- Bremse had expected 12.5 to 14.0 percent. This would definitely reduce operating profit. Sales are expected to increase to 6.9 (previously 6.8) to 7.2 billion euros. In 2021 it was 6.7 billion.

Inflation has been offset by a cost-cutting program since the beginning of the year
, explained Knorr- Bremse. But the announced departure from Russia as a result of the Ukraine war not only costs the company operational business, but also leads to write-downs of 50 million euros. 20 million of them were booked in the second quarter.

But they weigh heavier Trouble in China, where prospects have clouded over in both the train and truck businesses. The weak train utilization due to the corona pandemic meant that the railway operators thinned out their fleets and invested less. The truck market in China is also cooling off. Contrary to what had been hoped, a significant short-term recovery is not to be expected there either.

The new margin expectation corresponds to an EBIT of between 725 and 865 million euros. That would definitely be less than the 920 million euros generated last year. With the previous forecast, Knorr- Bremse would have achieved between 850 million and one billion euros.


source site-18