2023-10-17 11:25:10
Zurich (awp) – Building equipment manufacturer Meier Tobler saw its revenues decline in the third quarter of 2023, due to unexpected difficulties linked to the insufficient speed and stability of the processes of its new service center, which resulted in delays and incomplete deliveries. A warning which resulted in a sudden drop in the share price on the Swiss Stock Exchange.
The turnover achieved by the Lucerne group between July and September amounted to 131.5 million Swiss francs, 9.1% less than over the same period a year earlier. Over the first nine months of the year, however, the balance remains barely positive (+1.2%) at 407.9 million, the company reported in a press release on Tuesday.
The management of Meier Tobler claims to be working “hard to quickly remedy the performance deficiencies of the new service center”, while admitting that the current problems will affect its autumn activities. Revenues for the fourth quarter are also expected to be down year-on-year.
Declining annual performance
Over the entire financial year, the company estimates that it will not be able to repeat the performance of 2022, both in terms of revenues, operating profit (Ebit) and net profit. The situation should normalize in 2024, even if it is “difficult to estimate the speed at which (the turnover) will be able to return to its previous level”.
Despite the reported difficulties, Meier Tobler insists that neither the distribution of dividends at least at the previous year’s level nor the ongoing share buyback program are “compromised”.
After several good operational surprises, the start-up difficulties of the new service center in Oberbuchsiten constitute bad news, says the Zurich Cantonal Bank (ZKB) in a commentary. The blow to the annual outlook is “particularly negative”, judges the establishment, which had until now expected a growth of 2.5% in turnover, however confirming its recommendation of weighting to the market.
The promises of Meier Tobler’s management regarding the return of capital to shareholders, nor the confidence displayed to return to growth next year, will not have been enough to reassure the market. At 12:40 p.m., the registered Meier Tobler fell by more than 15.3% compared to its closing price the day before, at 33.45 Swiss francs, which put it in last position in an SPI down from 0 .28%.
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