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Chargeurs

CR
Bloomberg   CRI FP
Support Services  /  France  Web Site   |   Investors Relation
Strong 2025 ambitions, luxury flavour
Target
Upside 76.3%
Price (€) 15.7
Market Cap (€M) 391
Perf. 1W: 1.29%
Perf. 1M: 6.44%
Perf. 3M: 20.4%
Perf Ytd: 11.5%
10 day relative perf. to stoxx600: 1.17%
20 day relative perf. to stoxx600: 0.78%
Other news/comments04/05/2012

Lower volumes will impact profitability

Fact

For Q1 12, management reported revenues of €140.2m, all in all broadly stable compared to the same period last year but showing a strong decrease in volumes, -11.6%, while the mix/price effect was 8.7% and FX 2.6%.
For H1 12, Chargeurs has guided for revenues to be around €290m and operating income to be c.€9m.


Analysis

The group succeeded in further passing on price increases but volumes were negatively impacted by customers’ lack of visibility primarily in the Chargeurs Protective films and Interlining divisions. Europe remained very affected while the US is recovering.
The Wool division performed well at the top line (growth reached +5.9%) driven by the wool price (but the trends are changing with decreasing prices from 175USc/lb in January 2011 to 101USc/lb in April 2012) and selectivity in contracts.
As expected, Chargeurs is not immune from the global deterioration of consumption in Europe since last summer: customers’ lack of confidence in this difficult economic environment with a probable recession in Europe (48% group’s revenues), the increasing pressure on prices as well as the time lag between cost increases and the rise in selling prices and the fluctuations in costs…


Impact

We have already taken into account the challenging environment in our forecasts. We will see later on if it is necessary to revise down our figures further.


Updates

04 May 12 Other news/comments
Lower volumes will impact profitability

04 May 12 EPS change
A challenging 2012

19 Mar 12 Earnings/sales releases
Increasing profitability in a challenging context

21 Jan 12 Earnings/sales releases
Sales release: in line with our expectations

02 Dec 11 Other news/comments
Eduardo Malone has increased his stake

16 Nov 11 DCF Change
Visible slowdown in demand

16 Nov 11 Earnings/sales releases
Visible slowdown in order inflow for Q4

16 Nov 11 EPS change
Visible slowdown in demand

29 Aug 11 Earnings/sales releases
For H1 11, Chargeurs reported a 13.6% increas...

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