Kongsberg Automotive slumps as divestment disappoints
09/08/2022 11:20
**Shares in Kongsberg Automotive KOA.OL fall around 9%
after the Norwegian car technology provider sold parts of its
operations in Canada urn:newsml:reuters.com:*:nFWN2ZL0PA
** SpareBank1 Markets analyst Ole-Petter Sjøvold says the
divested plant is part of one of the company's successful
segments that has been "quite profitable over time"
** He says some market participants might have hoped KOA
would specialise more within this segment after it sold its
interior division in 2021 urn:newsml:reuters.com:*:nL8N2RP2LA
** "Our take is that investors have bought shares in the
company on this belief, but now following the announced
divestment investors have lost some faith in this strategical
plan and thus the investment case has weakened," Sjøvold says
** The analyst adds he believes the shareholders are also
disappointed by the lack of a specific plan on what the proceeds
will be used on
** The company separately reports Q2 results, with its
adjusted EBIT falling to EUR 4 mln ($4.09 mln), which was EUR 2
mln below SpareBank1 Markets' expectations urn:newsml:reuters.com:*:nL8N2ZL2FS
** Sjøvold says the Q2 book-to-bill ratio was low especially
in the speciality products division, which he says may "leave
some sour taste for the outlook of growth in the segment"
** The stock is on track for its worst day since mid-March
($1 = 0.9771 euros)
(Reporting by Marie Mannes)
((Marie.mannes@thomsonreuters.com))