Norma Group saw a boost in its shares following the announcement of higher fourth-quarter adjusted earnings, despite experiencing a sales setback due to widespread strikes at U.S vehicle manufacturers.
Shares in Norma Group were up by 6.6% at EUR15.25 as of 0835 GMT on Tuesday. However, they still remain down by 4.9% since the start of 2024.
The German machine-part manufacturer reported a 19% increase in adjusted earnings before interest and taxes for the fourth quarter compared to the previous year, reaching 23.0 million euros ($24.8 million). Additionally, the company's margin expanded from 6.4% to 8%.
Norma Group attributed the improved profitability to measures implemented to enhance production and logistics efficiency in the second half of the year.
Despite the positive earnings performance, sales declined by 5.1% to EUR286.7 million during the same period. This reduction was primarily caused by a temporary decrease in order call-offs resulting from widespread strikes at U.S vehicle manufacturers towards the end of 2023.
The company stated that these figures are preliminary and the complete results for 2023 are expected to be published on March 26.