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Wabererʼs issues profit warning

The board of road haulage company Wabererʼs International has adjusted its outlook for the year 2018 and now expects full-year group EBITDA to slightly decrease compared to EUR 85.8 million last year, the company said on the website of the Budapest Stock Exchange (BÉT) on Thursday.

Earlier expectations projected an increase in full-year EBITDA. In line with earlier expectations, the management still anticipates achieving double-digit revenue growth in 2018 compared to 2017, according to a report by state news agency MTI.   

Wabererʼs statement said the adjustment in expectations is primarily attributable to recent changes in the European transportation market, as the stressed labor market situation in the region and cost-induced price increases, resulting in lower truck utilization, both put pressure on profitability.

The firmʼs management considers these effects as temporary and expects market conditions to gradually normalize in the second half of the year, according to the statement. At the same time, the management has initiated several measures to improve the adaptivity of the organization and internal processes to better respond to changes in a more volatile market. They expect such initiatives to improve profitability next year, subject to market conditions.

In the first quarter of 2018, Wabererʼs revenues rose 15.3% to EUR 178.9 mln, MTI noted.