Norma Group, a specialist in connection technology, surpassed analyst expectations with a stronger-than-anticipated second-quarter performance, rewarding shareholders with a 13% stock surge to €18.02. While adjusted operating profit fell 10% to €23.4 million, the decline was far less severe than feared. Revenue dipped 5% to €290.4 million, pressured by a weak dollar and sluggish demand, particularly from Europe’s struggling automotive sector—a key market for the company. The operating margin slipped slightly to 8.1%, with net profit dropping to €5.2 million from €6.5 million a year earlier.
Cost-Cutting Measures Offset Headwinds
Management remains proactive, targeting €82.5–91.5 million in savings by 2028, including €4.5 million this year from closing two Chinese sites. The planned sale of its water management division could fetch over €800 million, while efforts to diversify beyond automotive aim to reduce sector dependence. Interim leadership reaffirmed full-year guidance, projecting revenue of €1.1–1.2 billion and a 6–8% operating margin. A former Bosch executive is set to take the helm in November, signaling a potential shift in strategy. Despite persistent challenges, Norma’s resilience suggests cautious optimism for investors.
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