Duerr Tumbles as China Manufacturing Shrinks: Frankfurt Mover
Duerr AG (DUE) fell the most in 2 1/2 months after a report showed China’s manufacturing industry, a key market for the German maker of painting plants for the automobile industry, shrank more than economists had predicted.
Shares in Bietigheim-Bissingen, Germany-based Duerr dropped as much as 7.3 percent, the most since April 5, and were trading 3.9 percent lower at 46.87 euros as of 9:42 a.m. in Frankfurt. About half the three-month daily average number of shares traded.
“Some 30 percent of Duerr’s business is in China, so while the manufacturing decline isn’t a game changer for them, it has an impact on the market’s sentiment,” Hamburg-based Hauck & Aufhaeuser analyst Philippe Lorrain, who has a hold rating on Duerr stock, said by telephone.
Chinese manufacturing slipped to 48.3 in the preliminary reading of a Purchasing Managers’ Index (EC11FLAS) released today by HSBC Holdings Plc and Markit Economics, less than the 49.1 median estimate of 15 economists in a Bloomberg News survey.
Of the 680 million euros ($859 million) in new orders the 118-year-old German company received in the first quarter, 45 percent came from China, driven by rising demand for passenger cars, Duerr said last month.
Duerr, which counts General Motors Co. (GM), Bayerische Motoren Werke AG and Toyota Motor Corp. (7203) among its customers, reported a 22 percent increase in first-quarter earnings before interest and taxes to 36 million euros in May. Sales slipped 3.5 percent to 543 million euros.
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