Knorr Bremse expects higher sales in 2018, its first results since its IPO

BERLIN (Reuters) – Manufacturer of brake systems Knorr Bremse (KBX.DE) left out concerns over global trade to forecast higher sales for 2018 on Wednesday, boosted by strong demand for its rail and utility vehicle systems.

In his first results since his stock market debut in October, Knorr Bremse said he expects the annual turnover to reach between 6.6 and 6.7 billion euros (201, 89 billion euros) between 2018 and 2018. turnover of 6.4 to 6.6 billion euros.

The supplier of the world's leading rail and truck manufacturers said earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 12.6 percent to 876 million euros in the first nine months of the year .

Sales rose 9.5% to 4.99 billion euros, boosted by an increase in truck production and by the demand for its rail braking systems in Europe.

The company, which manufactures brakes, door systems, air conditioning, driver assistance technology and steering systems, advanced 0.9% at the beginning of the session, but dropped 0 , 2% at 08:36 GMT.

Knorr Bremse sold 3.9 billion euros in securities in October. This is the second largest German stock market this year after Siemens Healthineers (SHLG.DE).

Concerns over declining demand for trucks and cars in key markets such as China and the United States weighed on other industry supplies.

Tire manufacturers such as Michelin and its rivals Continental AG (CONG.DE) and Goodyear (GT.O) were hit by weak demand in China, whose economy is slowing, and the impact of adverse movements in exchange rates and commodity prices.

Knorr Bremse, however, said that strong global demand in its rail systems sector and an increase in truck production rates had allowed his backlog to increase by 11.9 percent to $ 4.45 billion. ; euro.

It also expects an EBITDA margin of between 17.5% and 18.5% this year, compared to 18.1% in 2017.