Declining Revenue TrendSustained revenue decline reduces scale benefits and weakens bargaining power with suppliers. Over months this erodes operating leverage, pressures per-unit margins, and constrains reinvestment capacity, making recovery more difficult without structural market share gains or new product wins.
Negative Profitability & ROEPersistent negative EBIT and net losses degrade retained earnings and have pushed ROE negative, limiting internal funding for growth and exposing the company to dividend cuts or capital measures. Over the medium term this weakens creditworthiness and strategic flexibility.
Cyclical End-Market ExposureConcentration in automotive and electronics ties revenue to macro and technology cycles. Structural downturns or demand shifts in these sectors can materially reduce order volumes and idle capacity, creating sustained pressure on utilization, pricing, and long-term margin sustainability.