Zurich (awp) – Pierer Mobility’s shares lost nearly 15% on the Swiss Stock Exchange on Monday as midday approached. This fall follows the Austrian two-wheeler manufacturer’s announcement of lower sales forecasts for both the motorcycle and bicycle segments for 2024.
Around 11:05 a.m., the stock was worth 28.10 Swiss francs, down 14.5%, in an SPI down 0.2%.
The dynamics of Pierer Mobility’s main motorcycle markets in the United States and Europe have slowed considerably, the group indicated Friday evening after the close of trading.
Due to the latest monetary policy decisions in the United States, the Austrian two-wheeler manufacturer expects interest rates to remain high, which will weigh on sales expectations in the American market. Likewise, sales figures in Europe remain volatile. Ultimately, after three years of above-average success, Pierer Mobility’s sales figures this year will be 10 to 15% below expectations.
The resulting increasing costs not only weigh on Pierer Mobility, but also on dealers, suppliers and above all on the purchasing willingness of customers. “We will continue to support the dealers as best we can,” CEO Stefan Pierer said in a conference call on Monday.
Future inventory reductions, longer payment terms and increased discounts will have an impact on profitability, weighing significantly on operating income before interest and taxes (Ebit) and earnings. financial.
Added to this development is a significantly negative performance for the bicycles unit, which, as a result of depreciation and restructuring charges, is expected to suffer an EBIT loss of between 110 and 130 million euros.
The company has already taken measures to maintain its competitiveness: it has implemented stricter cost management and reduced its production volumes. The workforce also had to be adapted.
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