Jefferies was struggling to find the positives in Dowlais Group PLC (LSE:DWL)'s interim update today, saying it was “a very challenging” set of results.
First-half numbers were more or less in line but new full-year guidance of £320-325m was well below the US bank’s estimate of £340m even without the boost from the hydrogen disposal.
“ePowertrain was down double-digits on extreme BEV (battery electric vehicles) volatility, while customer destocking also impacted the business," said Jefferies.
Restructuring guidance has moved higher, so leverage will go up at year-end, while the strategic review of Powder Metallurgy should surprise no one, said the US bank.
Shares in the auto parts and powders rallied to be around flat at 5 61.3p after a weak start.