BERLIN (dpa-AFX) - Knorr-Bremse AG (KNRRY.PK), a German manufacturer of braking systems, announced the sale of R.H. Sheppard Co., Inc. to the US investor Balmoral RHS Acquisition Corp.
Sheppard develops and manufactures commercial vehicle steering systems as well as adjacent products and services to utmost quality standards. Its revenues in the 2023 fiscal year came to approximately US$150 million. The transaction encompasses the entire Sheppard business. Sheppard was previously an operating unit of Bendix Commercial Vehicle Systems LLC, a subsidiary of Knorr-Bremse and part of the Commercial Vehicle Systems division.
The sale of Sheppard will result in a one-time, non-cash, and non-operating net loss of approximately 60 million euros. This will negatively impact earnings per share by about 0.37 euros in the fourth quarter of 2024, Knorr-Bremse said.
In addition, the Executive Board of Knorr-Bremse decided on a fair value adjustment for the carrying amount of a receivable from the sale of Kiepe Electric GmbH of just under 50 million euros. Although the write-off is also a one-time, non-cash charge and will not have an impact on the operating result, it will negatively affect the fourth quarter of 2024 earnings per share by 0.31 euros.
Knorr-Bremse plans to propose a dividend for the 2024 fiscal year that is at least stable so as to reflect its continued strong operating performance. The company confirmed the operating guidance for sales, EBIT margin and free cash flow in line with third-quarter reporting.
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