2023-10-25 12:49:00
Zurich (awp) – The Zug producer of floor coverings, glues and transmission belts Forbo warns that it will not turn around the bar in the second half of the year, contrary to the hopes expressed by its management at the end of a gloomy first half.
The group explains in its warning published Wednesday that it faced headwinds on the foreign exchange front between July and the end of September, in addition to a reduction in demand.
Calculating a foreign exchange handicap of 80 million Swiss francs on revenues and 10 million on operating profit (Ebit), the chemist suggests a 10% decline in its turnover over the entire financial year. Net profit should be around 100 million, as in 2022, instead of the 130 million articulated at the end of July.
Already less optimistic than management so far, Vontobel is preparing to further lower its own forecasts for the year once more. The Zurich management bank nevertheless emphasizes that liquidity generation remains robust and renews its purchase recommendation on the stock.
This new warning on results, eleven months following a previous one and an unexpected change at the head of the company, does not help to improve the reliability of the outlook given by management, notes the Zurich Cantonal Bank (ZKB). The low valuation of the stock and the planned launch of a share buyback program might nevertheless bring investors to better feelings, continues the cantonal establishment.
In fact, the course regained color at the beginning of the followingnoon. At 2:13 p.m., the registered stock was still down 3.0% to 999.00 Swiss francs, following having lost more than double in the first exchanges, in an SPI exactly in balance.
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