Knorr-Bremse Reports Dip in Profit Amid Weak Revenues

Knorr-Bremse AG faces challenges in its fourth quarter with a significant profit drop and declining revenues. Despite this, the company is optimistic about future growth with expected revenue increases for fiscal 2025.

Date: 20-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Knorr-Bremse reported a substantial decline in earnings per share, falling 90.3% to 0.11 euros from 1.13 euros a year ago, indicating a negative financial impact on shareholders for the quarter.

Net Income
The company's net income plummeted by 86.1% to 24.8 million euros compared to 178.0 million euros from the previous year, which raises concerns regarding its profitability prospects.

Revenue Growth
For the fourth quarter, revenues decreased by 4% to 1.99 billion euros from 2.07 billion euros the prior year, signifying a need for improvement in sales performance.

Operating EBIT
Operating EBIT stood at 241.6 million euros, down 5.1% from last year. The operating EBIT margin slightly declined to 12.2%, indicating potential challenges in maintaining operational efficiency.

Future Projections
Despite the current downturn, Knorr-Bremse projects positive revenue and earnings growth for fiscal 2025, estimating revenues between 8.10 billion euros and 8.40 billion euros, along with an operating EBIT margin of 12.5% to 13.5%. This optimism suggests a strategic plan for recovery.

Dividends and Corporate Strategy
The company also aims to distribute increasing dividends for fiscal 2024, reflecting confidence in future cash flow. Moreover, potential restructuring costs of up to 50 million euros are expected to optimize production, which could improve long-term profitability.

Stocks: KNRRY