NEU-ISENBURG (dpa-AFX) - Jost Werke sees itself on track to meet its annual targets after a strong opening quarter. The commercial vehicle supplier remains on track for growth in the new year after a record 2022 and has subsequently confirmed its forecast. Sales and operating profit significantly exceeded analysts' average estimates in the first quarter. The figures were well received on the stock market, with Jost shares rising by around 2.7 percent to €49.35 in early trading.

Sales in the first quarter rose by 9.6 percent to 341.6 million euros, the company, which is listed in the small-cap index SDax, announced on Monday. Growth was driven by the transportation sector, where Jost enjoyed robust demand for components for trucks and trailers. Concerns about the rapid rise in prices for energy, fertilizers and seeds in 2022, on the other hand, have led to a reluctance to buy among farmers. As a result, sales of agricultural components have dropped significantly.

"In Asia-Pacific Africa and North America in particular, we benefited from very high demand for our products, but we also managed to grow in Europe compared to the previous year," Jost CEO Joachim Dürr said, according to the statement. In Europe in particular, however, Jost felt the impact of high costs for raw materials, energy and alloying. On the other hand, the recovery of the Chinese market had a positive impact.

Adjusted earnings before interest and taxes (Ebit) increased by 15.5 percent to 39.7 million euros from January to the end of March. The figure significantly exceeded the average analysts' estimates provided by the company itself, as it did for sales. Jost also became more profitable at the start of the year, with the adjusted EBIT margin rising from 11 percent in the same period last year to 11.6 percent. This was mainly due to an improvement in supply chains and higher production capacity utilization.

Below the line, the SDax company earned 24 million euros, an increase of 11.6 percent. In addition, free cash flow improved significantly from minus 12.8 to plus 13.3 million euros, even though Jost invested heavily, first and foremost in a new production plant in India. According to CFO Christian Terlinde, the company has set the right course. As already known, Terlinde will leave the Group after the second quarter and will be replaced on September 1 by Oliver Gantzert, who is currently still Chief Financial Officer at the automotive supplier Kamax Group from Homberg in central Hesse.

Jost confirmed the forecast: 2023 sales and operating profit are expected to increase in the low single-digit percentage range. The margin is expected to improve slightly, but with the proviso that the Ukraine war does not spread beyond the region. Last year, despite the Russian war of aggression, Jost's sales and operating profit were higher than ever before thanks to good business in North America and Asia./niw/mne/stk