Delignit - Missing a gear
After further positive guidance in April, Delignit’s H119 earnings shortfall (EBITDA down 16%) and full-year profit warning are all the more disappointing. In mitigation, the company has arguably been a victim of its own successful Automotive OEM business in ramping up for special call-offs that may yet materialise, while incurring higher costs than planned for a still potentially transformative motor caravan order. Management now expects 2019 revenue of €64m (ahead of last year but below the original forecast of €70m) and an EBITDA margin between 6% and 7% (originally 9.3%, as in 2018). Its confidence in Delignit’s strategic direction and long-term prospects appears to remain undimmed.Delignit AG is a Germany-based supplier of technological products and system solutions produced from the ecological, wood-based Delignit material. It operates through two segments: Automotive and Technological Applications. The Automotive division focuses on the production and sale of safety features for automobile interior and loading area protection for light commercial vehicles, such as for floors, walls and partitions. The Technological Applications segment offers floors for production sites and rail vehicles, fire safety and sound proofing in public buildings, including safety components and construction elements, as well as on tool construction, such as the production of sheet-forming tools.
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