FRANKFURT (dpa-AFX) - Stabilus shareholders are likely to suffer a significant setback on Friday. The automotive supplier's shares were trading more than seven percent below their Xetra closing price in pre-market trading on the Tradegate platform after the automotive supplier announced the previous evening that provisions for a cost-cutting program in the current fiscal year would weigh on earnings.
Stabilus estimated the costs of the cost-cutting program at €18 million. Consolidated earnings for the fiscal year are therefore likely to be only €25 million, which is below the average analyst estimate of €47.1 million.
According to one trader, the cost-cutting measures appear sensible. However, their necessity underscores that the market situation remains difficult and that the company must make additional efforts to achieve the strategic goals set for 2030.
