Datron - Fighting its corner

DATRON has accompanied news of 23% lower EBIT in H119 with a full-year profit warning. While the former was not unexpected, given a bumper comparative, previous guidance that profit would be H2-oriented may no longer be the case owing to worsening conditions (estimated industry order intake down 17% for 2019) and order delays in DATRON’s key domestic and US markets. Management now expects 2019 revenue of c €55m vs its May 2019 guidance of €60m and EBIT between €4m and €5m (originally €6m). It remains confident that, as in H119, investment-led growth, supported by strong finances, will continue to drive clear market outperformance, especially by its premier CNC milling machines.