technotrans SE Confirms Profitability Forecasts Amid Challenging Economic Environment

Technotrans SE reports Q1 2024 revenue of €56.0 million, down from €68.3 million last year, but confirms profitability forecasts for 2024 and 2025. The company expects business to pick up in H2 2024 driven by major orders and its ttSprint efficiency program.

author-image
Aqsa Younas Rana
New Update
technotrans SE Confirms Profitability Forecasts Amid Challenging Economic Environment

technotrans SE Confirms Profitability Forecasts Amid Challenging Economic Environment

technotrans SE, a leading technology company, released its quarterly interim statement on May 14, 2024, providing an update on its financial performance and outlook. Despite a weak economic environment, the company has confirmed its profitability forecasts for the current and upcoming financial years.

Why this matters: The confirmation of profitability forecasts by technotrans SE amidst a challenging economic environment is a positive sign for the technology industry as a whole, indicating resilience and adaptability in the face of uncertainty. This development may also have implications for the broader economy, as tech companies are often seen as bellwethers for overall economic health.

In the first three months of 2024, technotrans SE reported consolidated revenue of €56.0 million, a decrease from €68.3 million in the previous year. The company's consolidated EBIT also declined to €0.4 million from €3.5 million in the prior year, resulting in an EBIT margin of 0.7% compared to 5.2% in the previous year. The adjusted EBIT margin stood at 2.0%, while the return on capital employed (ROCE) decreased to 10.3% from 13.0% in the prior year.

Despite the challenging start to the year, the technotrans Board of Management remains optimistic about the company's future prospects. They expect business to pick up in the second half of 2024, driven by major orders in key future technologies and the launch of the ttSprint efficiency program. The ttSprint program has already incurred restructuring expenses of €0.7 million in the first quarter of 2024 as part of its implementation.

Looking ahead, technotrans SE has confirmed its forecast for the current financial year. The company expects revenue to range between €245 and €270 million, with an EBIT margin between 5.5% and 7.5%. Additionally, the mid-term targets for the 2025 financial year remain unchanged, demonstrating the company's confidence in its strategic direction and ability to navigate the current economic landscape.

The company's focus on key future technologies and the implementation of the ttSprint efficiency program are expected to drive an increase in profitability in the second half of 2024. By leveraging its expertise and strategic initiatives, technotrans SE aims to strengthen its market position and deliver sustainable growth for its shareholders.

Key Takeaways

  • technotrans SE confirms profitability forecasts for 2024 and 2025 despite weak economy.
  • Q1 2024 revenue: €56.0 million, down from €68.3 million in previous year.
  • EBIT margin: 0.7%, adjusted EBIT margin: 2.0%, ROCE: 10.3%.
  • Company expects business to pick up in H2 2024 driven by major orders and ttSprint program.
  • 2024 forecast: revenue €245-270 million, EBIT margin 5.5-7.5%, unchanged mid-term targets for 2025.