DGAP-Ad-hoc: Knorr-Bremse Aktiengesellschaft: Preliminary results for Q2 2020 significantly exceed expectations
Knorr-Bremse Aktiengesellschaft / Key word(s): Quarter Results/Forecast
Disclosure of an inside information acc. to Article 17 of the Regulation (EU) No 596/2014
Key word(s): Quarterly results
Moosacher Str. 80
[Stock markets and trading segments to which the share is admitted]
Preliminary results for Q2 2020 significantly exceed expectations
Munich, 16 July 2020
Knorr-Bremse AG has considerably surpassed expectations in compensating for the anticipated downturn in business caused by the Covid-19 pandemic during the second quarter of 2020. Based on initial indications, the company is anticipating revenues of approximately EUR 1.4 billion (Q2/2019: EUR 1.8 billion) and an operating EBITDA margin of approximately 17 % (Q2/2019: 19.1 %) for the reporting period April to June 2020.
According to a Vara Research report of 15 June 2020, analysts estimate revenues of just EUR 1.2 billion and an operating EBITDA margin of only 9 % for the second quarter of 2020.
In the past quarter, despite the significant impact of the Covid-19 pandemic, Knorr-Bremse benefited from the rapid effectiveness of its implemented cost-cutting measures, an earlier than expected recovery of some markets, a particularly swift recovery of the Chinese market, a relatively good development of the aftermarket share in both divisions, and a favorable product mix.
Based on the improved figures at the end of June 2020, the recovery is likely to continue overall in the second half of the year, though not as clearly as in the second quarter. In particular, Knorr-Bremse expects some of the effects that positively influenced the Rail division in the first half-year, such as advance purchases in the aftermarket business and a favorable product mix not to continue in the same way in the second half of the year. In the Truck division, demand in China is expected to normalize. The record level of production in China is therefore unlikely to be sustained, which will contribute to a slower recovery. In addition, predictions of commercial vehicle demand in the second half of 2020 are currently still subject to a high degree of uncertainty, particularly in Europe and North America.
Based on the preliminary figures of the first half-year 2020 and the expected development in the second half-year, the Executive Board of Knorr-Bremse AG publishes a new outlook for the 2020 fiscal year. Barring further lockdowns due to the Covid-19 pandemic and the resulting negative impacts on business up to the end of the year, revenues in the region of EUR 5.8 to 6.2 billion (2019: EUR 6.937 billion) and an operating EBITDA margin of 16.0 to 17.5% (2019: 18.8%) are expected for the 2020 fiscal year. This outlook for the whole of 2020 is based on current exchange rates.
The full half-year report and Q2 2020 report will be published, as scheduled, on 10 September 2020.
Explanations and reconciliations of the key financial figures used can be found in the Knorr-Bremse AG Annual Report 2019 (available at https://ir.knorr-bremse.com/download/companies/knorrbremse/Annual%20Reports/DE000KBX1006-JA-2019-EQ-E-00.pdf), specifically on pages 75 onwards and page 102.
This publication contains forward-looking statements concerning the business, financial performance and earnings of Knorr-Bremse Group.
These statements are based on assumptions and forecasts that reflect currently available information and current assessments. They are subject to a number of uncertainties and risks. The actual business development may therefore deviate substantially from expectations.
Beyond the legal requirements, Knorr-Bremse assumes no obligation to update any forward-looking statements.
|Moosacher Str. 80|
|Phone:||+49 89 3547 0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange (Third Market (MTF))|
|EQS News ID:||1095519|
|End of Announcement||DGAP News Service|