German supply chain manufacturer KION issued a profit warning and opened -15% on the market.
The weak performance of the Warehouse Automation division is precisely what’s behind this. Cost inflation in materials, wages, and supply chains, component availability, and labor constraints, especially in the United States, are weighing down Q3 EBIT, leading to a loss of EUR 100 million. Orders are also clearly down in Q3 compared to a year ago, which is concerning as September has previously been an important month.
ABG sees a poor risk/reward ratio in AutoStore due to few positive drivers, continuously weakening gross margin, and declining order book growth. The company’s outlook and forecasts were lowered, and the target price was reduced to NOK 15 (16).