Knorr-Bremse AG has officially sold R.H. Sheppard Co. to Balmoral RHS Acquisition Corp., streamlining its focus on braking technologies and operational growth. This was reported by the railway transport news portal Railway Supply.

Knorr-Bremse
A view of the headquarters of the world’s leading manufacturer of braking systems for rail and commercial vehicles Knorr-Bremse in Munich. Knorr-Bremse said on Friday it is selling US steering maker systems subsidiary Sheppard. picture alliance / dpa

Knorr-Bremse AG Announces Strategic Sale of Sheppard

Knorr-Bremse AG, a global leader in braking systems, completed the sale of R.H. Sheppard Co. The $150 million transaction supports a strategic realignment toward core technologies and sustainable growth.

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The deal includes all Sheppard assets, emphasizing quality steering systems and adjacent technologies. Previously, Sheppard operated as part of Bendix Commercial Vehicle Systems, a Knorr-Bremse subsidiary.

Financial Impact on Knorr-Bremse AG’s 2024 Earnings

Knorr-Bremse AG reported a non-cash net loss of €60M due to the Sheppard sale, reducing earnings by €0.37 per share in Q4 2024. This impact remains isolated to accounting adjustments.

Additionally, a €50M write-off tied to Kiepe Electric GmbH’s sale added a €0.31-per-share loss, also non-operational. Despite these adjustments, Knorr-Bremse AG reaffirmed confidence in financial stability.

Knorr-Bremse AG’s Future Outlook and Strategic Focus

Knorr-Bremse AG pledged to maintain its dividend proposal, reflecting consistent revenue performance and growth forecasts. The company also confirmed its 2024 guidance for sales, EBIT margins, and free cash flow.

Sheppard’s sale allows Knorr-Bremse AG to prioritize braking systems, expand technologies, and strengthen competitiveness. Analysts predict reinvestment into innovation and acquisitions to sustain growth.

Knorr-Bremse AG emphasized long-term stability, operational efficiency, and shareholder value by focusing on targeted strategies. This approach highlights adaptability and resilience amid evolving market conditions.

Source: www.rttnews.com

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