MUNICH (dpa-AFX) - Truck and train brake manufacturer Knorr-Bremse continued to benefit in the third quarter from good business in its train division. In the truck supply business, on the other hand, the weakness of the sector as a result of the economic downturn continues to make itself felt. The company does not anticipate any far-reaching recovery here in the coming year either. Following the completed takeover of Alstom's rail signaling technology in North America, the Munich-based company is now aiming for slightly higher sales this year. The share, which has performed well since the beginning of the year, fell on Thursday.

The MDax share initially slipped below the 77 euro mark after the start of trading, but recovered somewhat and was last down a good 3.5 percent at 77.75 euros. This means that investors still have a third of the share price up this year. Stronger development in the train business has more than made up for the weakness in trucks, wrote analyst Lucas Ferhani from the US investment bank Jefferies. As expected, the Group has adjusted its sales outlook to reflect the acquisition. This should not affect the mid-market estimates.

Akash Gupta from JPMorgan, however, was somewhat surprised that the Group was sticking to its forecast range for the operating margin. After all, this allows for a wide range of results for the fourth quarter.

The challenging environment in the truck market is likely to persist in 2025, the Group said, giving an initial insight into its plans. Demand is likely to remain at roughly the same level as this year. Sales in the division will only grow slightly, if at all, as will the operating margin. In the rail vehicle business, Knorr-Bremse anticipates growth in the mid-single-digit percentage range in the coming year. The operating margin should even increase significantly.

In Thursday's press release, Group CEO Marc Llistosella spoke of a "crisis-proof" rail division. While turnover and earnings increased significantly in the third quarter, the commercial vehicle business suffered losses.

Overall, turnover climbed by just under one percent to 1.91 billion euros, while incoming orders fell by just under two percent to 1.94 billion euros. In contrast, earnings before interest and taxes (EBIT) adjusted for special effects rose by around five percent to 235 million euros, while the margin increased by 0.8 percentage points to 12.3 percent. Profit rose slightly from 137 million euros in the previous year to just under 140 million euros.

Instead of 7.7 to 8.0 billion euros in sales, Knorr-Bremse is now aiming for 7.8 to 8.1 billion euros this year. In terms of operating margin before interest and taxes and free cash flow, the management is sticking to its previous targets. CEO Llistosella is aiming for a margin of 11.5 to 13 percent. The cash inflow should amount to between 550 and 650 million euros./men/zb/stk