Higher costs and lower operating EBIT impact performance

  • Grammer shares plunged after missing earnings guidance
  • Higher costs due to plant capacity, currency losses, and personnel costs
  • Operating EBIT in Q4 significantly below previous year’s level
  • Revenue guidance for the year still expected to be met

Grammer shares took a hit as the German car-part supplier announced that it would fall short of its operating earnings before interest and taxes guidance for the year. The company cited higher costs resulting from volatile plant capacity utilization, currency losses, and a sharp rise in personnel costs in the fourth quarter. Despite this setback, Grammer still expects to meet its revenue guidance for the year. However, negotiations with customers on compensation to offset inflation-related cost increases are still pending, preventing the company from providing a new forecast for the full year 2023 at this time.

Public Companies: Grammer (N/A)
Private Companies:
Key People:

Factuality Level: 8
Justification: The article provides specific information about Grammer’s warning and the reasons behind it, such as higher costs due to plant capacity utilization, currency losses, and personnel costs. It also includes the company’s forecast for operating EBIT and revenue guidance. However, the article lacks additional context or analysis, and it does not provide any opposing viewpoints or independent verification of the information presented.

Noise Level: 3
Justification: The article provides relevant information about Grammer’s warning of missing its operating earnings guidance for the year. It mentions the reasons for the higher costs and the impact on the company’s shares. It also includes the company’s forecast for revenue guidance. However, the article lacks in-depth analysis, evidence, and actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: Grammer shares

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the impact of higher costs on Grammer’s operating earnings. However, there is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com