Rational falls as higher component costs dent Q2 margins

Rational AG

03/08/2022 11:27

** Shares of German kitchen appliance maker Rational
 RAAG.DE  are down 4.3% after soaring costs hit Q2 margins
 urn:newsml:reuters.com:*:nASM000LXG
    ** Baader Helvea says the quarterly numbers are
characterised by still good but normalised demand, higher sales
and lower margins
    ** The company reports Q2 gross margin of 53.5% vs 56.6% in
the same period in 2021, and EBIT margin of 19.5% against last
year's 24.7%
    ** "In comparison to the surprisingly solid 1Q22 level,
Rational's 2Q22 gross margin worsened ... due to the significant
rise in component costs and only limited effect from Rational's
product price increases in sales recognition" - Baader
    ** The company remains cautious on soaring costs in
materials procurement and logistics, and warns future sales
performance will be largely determined by the availability of
components
    ** "Despite excellent long-term growth opportunities and the
expected significant margin recovery from 2023 on, we still
consider Rational's valuation as high," Baader says
    ** The stock is the worst performer on the German mid-cap
index  .MDAXI 

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))