Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's have a look at some of the individual
Speaker 3: stocks on the move today here in Europe. I'm Caroline Hepkin.
Speaker 3: I'm joined by Bimberg Report A Chlo Malay. Good morning.
Speaker 3: Let's start with Stilantis. The auto stocks had a really
Speaker 3: bad day in Europe yesterday and Stilantis are whopping crop
Speaker 3: dropped today.
Speaker 1: Yeah, absolutely massive message drop in the shares this morning,
Speaker 1: and that is because Silantis said that it will be
Speaker 1: taking charges of about twenty two billion euros as part
Speaker 1: of these kind of major restructuring of operations that includes
Speaker 1: primarily moving away from electric vehicles. So just to give
Speaker 1: an idea of some of where that money is going.
Speaker 1: Within that twenty two billion year figure, we've got about
Speaker 1: a six point five billion in payments to compensate suppliers,
Speaker 1: for example. And the CEO said that the changes were
Speaker 1: largely reflecting the cost of overestimating the pace of the
Speaker 1: energy transition. So now they're kind of walking that back.
Speaker 1: He's eliminated fully electric models and also left a joint
Speaker 1: venture with the South Korean battery manufacturer, so very much
Speaker 1: moving away from those previous ambitions under the previous the
Speaker 1: previous CEO around those electric vehicles, and there's other big
Speaker 1: parts of this restructuring strategy. One of the main things
Speaker 1: as well is refocusing on the US market, moving a
Speaker 1: little bit away from Europe as well. So charges were expected,
Speaker 1: but they are actually way ahead of what analysts had anticipated,
Speaker 1: which explains this really negative stock reaction this morning. And
Speaker 1: now it really puts pressure on the CEO who joined
Speaker 1: just last year in June, so he's not really been
Speaker 1: at the HELM for that long, but it's really putting
Speaker 1: pressure on him to show that those really big changes
Speaker 1: around electric vehicles, around moving away from Europe are going
Speaker 1: to start paying off at some point.
Speaker 3: Yeah, and still Antis's chef price down as much is
Speaker 3: eighteen and a half percent today. Sticking with automotives, how
Speaker 3: is Kongsburg firing this morning?
Speaker 1: Very well, we were talking about electric vehicles, but this
Speaker 1: is about armored vehicles, and it seems that in this
Speaker 1: environment is probably much better to be in the armored
Speaker 1: vehicle business than the electric vehicle business. So Kongsburg operates
Speaker 1: kind of across the range of industry, but the one
Speaker 1: that is really going to be the focus today is
Speaker 1: the defense side of the business. So it's signed a
Speaker 1: contract that is valued at about one hundred and forty
Speaker 1: million euros to deliver remote weapons stations to the German
Speaker 1: and Swedish Armored Vehicle System. So a remote weapons station
Speaker 1: is a system that allows to operate weapons using a
Speaker 1: joystick from inside the protection of a vehicle. So essentially
Speaker 1: we're talking about the gun that sticks out of a tank.
Speaker 1: So they provide that and so that is a big contract.
Speaker 1: And in Kongsburg also reported earning stay and you know,
Speaker 1: it had all the divisions reporting double digit growth in
Speaker 1: twenty twenty five and as well in the fourth quarter.
Speaker 1: And it also said that they had a really strong
Speaker 1: order backlog. So it seems that Consberg is in great
Speaker 1: shape overall and that really contributed to this huge jump
Speaker 1: in the shap price this morning.
Speaker 3: Yeah, very interesting. As Europe of course grapples with the
Speaker 3: fact that there are so many different tankers being built
Speaker 3: by so many different countries. You know, that point has
Speaker 3: been made frequently that there's sort of too much of
Speaker 3: a range, lack of interoperability. Yeah, I think very interesting. Okay,
Speaker 3: let's also think about all stared reporting a profit miss
Speaker 3: how investors digesting that.
Speaker 1: Well, it seems that they're actually fine with it because
Speaker 1: the company also plans to reinstate dividends and to also
Speaker 1: accelerate spending this year. So there seems to be an
Speaker 1: effort from Austed now to kind of move on from
Speaker 1: the troubles of last year when it had to deal
Speaker 1: with so much pushback from the Trump administration against the
Speaker 1: wind industry, and it also had to do this massive
Speaker 1: rights offering to boost this balance sheet. That's the rights
Speaker 1: issue that that's all we could talk about last summer,
Speaker 1: I remember. But now the company wants to return castra
Speaker 1: and for the first time since twenty twenty three, and
Speaker 1: it wants to really focus on what is next. So
Speaker 1: that's what investors are focusing on this morning, which explains
Speaker 1: the share price actually actually jumping this morning. But it seems,
Speaker 1: you know, that troubles are getting a little bit better,
Speaker 1: but the outlook is still quite uncertain for the industry.
Speaker 1: That Trump administration has not changed its stance on wind turbines.
Speaker 1: It still hates them and still wants to kind of
Speaker 1: hold the projects from for Austed and other companies within
Speaker 1: that space. The costs are still high, supply chain issues
Speaker 1: are still a problem, so it's not out of the
Speaker 1: woods just yet, but the fact that the dividend was
Speaker 1: reinstated was reassuring to investors.
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