Q2e: US operations stable, Germany still struggling
We expect Ferronordic to report Q2 net sales of SEK 1,205m, up 79% y-o-y due to the major acquisition of Rudd in the US. We anticipate a clear discrepancy between the company's two main segments, USA and Germany. The US operations look set to remain stable in Q2, but we note a material drop in the US July ISM PMI to 46.8 (compared to the Q2 average of 48.8), which adds some downside risk to our H2 estimates should the trend continue. In Germany, the truck market has been weak for some time with PMIs in the low 40s, and we see no clear trend shift in the near term. All in all, we estimate an EBIT of SEK 29m, of which SEK +63m from the US, SEK -15m from Germany, and the remainder from Kazakhstan and group functions.
LÄS MER
