SCHRAMBERG, GERMANY – Schweizer Electronic has adjusted its forecast for the 2024 financial year based on preliminary results for the first half of the year.

The company said its sales forecast of EUR140 million to EUR150 million ($152.8 million to $163.7 million) remains unchanged due to the successful start of large-scale production of embedding technology, which is benefiting significantly from the weak demand for battery electric vehicles.

Schweizer said it is, however, affected by the current difficult overall economic situation in the German economy, particularly in the German automotive industry. As a result, capacity utilization at its plant in Schramberg, Germany, has deteriorated noticeably, and the company now expects EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR2 million to EUR5 million ($2.2 million to $5.5 million) after previously projecting EUR10 million to EUR11 million ($10.9 million to $12 million) for 2024.

Schweizer said its trading business with its Asian partners is developing positively, those earnings contributions could not fully compensate for the losses at the German plant.

The company said it has initiated a program to improve earnings in order to take account of the capacity utilization situation at the plant in Schramberg, and expects the measures to begin to take effect in the coming months.

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