Delfingen: half-year sales down, caution expressed

(CercleFinance.com) - Delfingen lost more than 5% on the Paris Bourse on Tuesday, after reporting lower sales for the first half and expressing caution for 2024.


The specialist in cable protection and fluid transfer, notably for the automotive market, saw its sales fall by 3.9% to 224.7 million euros in the first six months of the year.

On a like-for-like basis, i.e. excluding acquisitions and exchange rate effects, sales were down by 5.6%.

In a press release, the Group explains that sales of electric vehicles have come to a standstill in North America and Europe, which has
mechanically penalized its business.

Against this backdrop, which is considered 'demanding', and in view of a still 'volatile' economic environment, Delfingen says it is remaining cautious, expecting current operating profitability to be lower than in the first half of 2023.

In a reaction note, Euroland analysts describe a 'complex' first half, with no improvement in sight for the second half.

As a result, the brokerage firm has revised its operating profit (Ebit) forecast downwards to 20.2 million euros, from 29.1 million euros previously.

Euroland reiterates its buy recommendation on the share, but lowers its target price to 48 euros from 58 euros previously.

Copyright (c) 2024 CercleFinance.com. All rights reserved.