Shares of Duerr have dropped after the company announced a reduction in its earnings target for 2024. The decline in orders at its Homag subsidiary has prompted this revision.
At 1055 GMT on Friday, shares were trading 16.96% lower at EUR19.63.
Duerr revealed late Thursday that it now expects to achieve an earnings before interest and taxes margin before extraordinary effects of 4.5% to 6% next year, down from the previous target of 8%.
The woodworking machinery subsidiary experienced a decline of over 30% in orders between January and September compared to the same period last year. Although this decline has not yet impacted sales due to a high order backlog, it could result in underutilization of capacity and sales losses of approximately 15% in 2024. To address this, Duerr is implementing cost-cutting measures.
Despite the challenges, Duerr reaffirmed its guidance for the current year and aims to attain its 8% EBIT margin before extraordinary effects target in 2026. Furthermore, the company is targeting a sales growth between 5% and 10% for 2024.
In the third quarter, preliminary figures indicate that Duerr achieved sales of around 1.15 billion euros ($1.22 billion) and an EBIT margin before extraordinary effects of around 7%.
The full results will be reported on Nov. 9.
