JOST adjusts 2024 forecast amid commercial vehicle demand dip

NEU-ISENBURG - JOST Werke SE, a global manufacturer of commercial vehicle systems, has revised its financial outlook for 2024, reflecting a downturn in demand within the commercial and agricultural vehicle sectors. The company released preliminary results for the third quarter, showing a 15.7% drop in sales to EUR 246.3 million compared to the same period last year.

The decline in sales led to a decrease in adjusted earnings before interest and taxes (EBIT) to EUR 26.5 million for the quarter, down from EUR 33.4 million in the third quarter of 2023. Despite the lower sales, JOST reported an adjusted EBIT margin of 10.8%, slightly down from 11.4% the previous year. For the first nine months of 2024, JOST's sales fell by 12.6% to EUR 843.0 million, with adjusted EBIT declining 14.0% to EUR 94.9 million.

Citing a cooling in the transportation sector in Europe and North America, along with delayed market recovery in the agricultural sector, JOST now anticipates a reduction in sales of around 15% for the full year, a more significant drop than the single-digit decline previously forecasted. Adjusted EBIT for 2024 is expected to fall in the low double-digit percentage range, with the adjusted EBIT margin projected to be between 10.5% and 11.0%.

The company has been able to maintain a high level of profitability due to the flexibility of its business model and strict cost discipline. JOST's final interim financial results for the third quarter of 2024 will be published on November 14, 2024, alongside an interim report, followed by a virtual conference for analysts and investors.

The information presented in this article is based on a press release statement from JOST Werke SE.

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Source: Investing.com