German Battery Maker Varta Lowers 2024 Revenue Forecast
German battery maker Varta AG lowers its 2024 revenue forecast due to declining demand in the energy storage market. The company now expects revenue between 820 million euros and 870 million euros, compared to the previous forecast of at least 900 million euros. Reduced production by key client Apple and a cyber attack earlier this year have negatively impacted Varta's operations.
The company attributes this adjustment to a decline in demand within the energy storage market. Varta now anticipates revenue to fall within the range of 820 million euros (US$877.56 million) to 870 million euros, compared to the previous forecast of at least 900 million euros.
This revision comes after Varta expressed concerns in April about meeting targets outlined in its year-old restructuring plan. The company's major shareholder, Michael Tojner, and a key client, Apple, reduced production of AirPods headphones, leading to potential setbacks. Varta stated that the negative impact on revenue development in 2024 will contribute to the wider forecast range.
Earlier this year, Varta faced additional challenges when it experienced a cyber attack in February. The attack resulted in a halt in production for several weeks, leading the company to postpone the publication of its 2023 financial results.
German battery maker Varta AG lowers its 2024 revenue forecast due to declining demand in the energy storage market.
The company now expects revenue between 820 million euros and 870 million euros, compared to the previous forecast of at least 900 million euros.
Reduced production by key client Apple and a cyber attack earlier this year have negatively impacted Varta's operations.
Source: REUTERS