French vehicle-leasing and fleet management company, ALD Automotive, saw a sharp drop in its share price on Monday, following the firm's revised projections for its 2026 cost-to-income ratio. The company now anticipates the ratio to be 52%, a significant increase from its previously forecasted 47%. The adjustment is attributed to mounting inflation and escalating information-technology expenses.
The impact of these revised projections was clearly visible in the market on Monday. By 04:27 ET (08:27 GMT), ALD Automotive's shares had plummeted by 13.1%, trading at €8.57 (€1 = $1.0673).
Simultaneously, Societe Generale (OTC:SCGLY), the majority stakeholder in ALD Automotive, also presented a more conservative financial outlook. The French banking giant has reduced its revenue growth target for the period spanning 2022-26. The bank now expects growth to fall somewhere between 0% and 2%, a significant decrease from its earlier estimate of at least 3%.
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