The car supplier Stabilus unpacks the red pencil and strokes 450 jobs. The savings program should secure the company’s competitiveness in the long term, the specialist for trunk gas springs announced on Thursday evening in Koblenz. While the costs of the renovation gnaw well at the group profit in the current year, Stabilus boss Michael Büchsner maintains his forecasts for day-to-day business. The news on Friday morning was poor.
The Stabilus share lost around 3 percent to 24.25 euros shortly after the start of the trade and was therefore the largest loser in the small-level index SDAX. The paper has lost around a fifth since the turn of the year.
Management justified the planned cuts with a difficult market environment. Weak worldwide growth, continuing increasing costs and structural changes in important target markets had a stressful effect. The board now wants to tighten the organization of the company, reduce personnel and operating costs and merge locations.
The costs of the renovation should amount to 18 million euros. Due to the corresponding provisions, the group result should only reach 25 million euros in the current financial year by the end of September. Analysts had recently expected an average of 47.1 million. As planned, sales should be around 1.3 billion euros as planned. About 11 percent of them should remain as a profit before interest, taxes, taxes and special effects.
Stabilus: sales and result decline in Q3
The savings program is to be implemented essentially in the coming financial year by the end of September 2026. In the following financial year 2027, the board expects savings of around 19 million euros. “The costs of the transformation program will have been amortized after a year,” emphasized the company. From the 2028 financial year, management expects annual cost savings of around 32 million euros.
According to the information, the reduction of 450 positions is particularly likely to be the regions of Europe, the Middle East and Africa (Emea) and meet America. Stabilus wants office and production areas in Germany, the USA, relocate and merging in Singapore and Thailand.
In the third business quarter until the end of June, the company had declined declines in sales and results. Stabilus has been suffering from a weaker demand from the great car manufacturers for a long time. Many of the manufacturers have to struggle with a strong drop in sales – also because of a weak demand on the important Chinese market. In addition, the automotive group is difficult for the US’s customs policy.