Investing.com -- Shares in Landis+Gyr Group, a smart metering manufacturer, saw a significant decrease after the company lowered its revenue and earnings forecast for fiscal 2025 and announced an impairment due to its departure from the electric vehicle (EV) charging sector.
In early trading on Tuesday, shares fell as much as 15.56%.
In its revised forecast, Landis+Gyr now predicts net revenue for the fiscal year ending March 31 to drop by roughly 8% compared to the previous year. This decline is primarily driven by the Americas and EMEA regions.
Furthermore, the company has also adjusted its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin expectation for fiscal 2025. It now expects a reduced EBITDA margin of around 10%, a decrease from the previously guided range of 11% to 13%.
The decision to exit the EV charging business was made by the new executive management team, according to the company.
This decision will lead to an impairment and restructuring charges. Landis+Gyr has indicated that it will record a one-time impairment of approximately $100 million in the current fiscal year due to this exit.
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