Updated:
KION Group shares fell 2.6% on Friday, October 2, after the German industrial equipment maker indicated that third-quarter adjusted EBIT would be about 7% below analyst expectations, according to Investing.com.
The company attributed the anticipated shortfall to weaker profitability in its Industrial Trucks & Services division and higher corporate costs. The shares had initially risen 1.5% before reversing direction after a pre-close call, the report said.
Warehouse automation orders also trail expectations
Investing.com reported that low capacity utilization amid subdued demand was weighing on margins in the truck division. In KION’s warehouse automation business, identified in the report as the IAS segment, the company indicated orders would be flat year over year—about 15% below analyst consensus.
The report noted that orders in warehouse automation can be uneven from quarter to quarter, but said an anticipated recovery had not emerged in the third quarter. The figures cited are company indications reported ahead of the quarter’s results; the article did not provide finalized third-quarter results.
Investing.com’s report did not specify the euro amount of the expected EBIT shortfall or give a revised full-year outlook. The share-price move and estimates in this brief reflect the report published on October 2.
