Schefenacker 9 1/2% bonds dropped eight points to the 81-82 context after the German auto supplier posted bad second quarter results. Schefenacker posted a EUR10.6 million net loss in the second quarter and a EUR24.9 million net loss for the first six months of 2006, compared with a EUR9.3 million net loss for the second quarter and a EUR19.7 million net loss for the first half of last year.
Schefenacker's sales have been hit by a slowdown in demand for cars produced by its customers, which include DaimlerChrysler, Ford Motor, General Motors and Renault/Nissan. Sales decreased by EUR14 million, or 5.7%, to EUR229.9 million for the three months ended June 30, 2006, from EUR243 million for the same period in 2005. The auto supplier makes and supplies rear vision systems, rear and interior lighting, and auto sound systems. A company spokesman did not return calls.