For the fiscal one-year period, the top contributing stock was Duerr (XTER:DUE, Financial), a German-based global mechanical and plant-engineering firm. Due to Covid-19, demand for Duerr's customers' products has fallen and, as a result, customers have needed less of the company's aftermarket services. Duerr's order intake and revenue have, therefore, declined. However, this drop in demand appears to have bottomed. In the second quarter, the company reported that demand has improved significantly since June. Duerr has also launched three separate and aggressive restructuring programs that combine to target EUR60 million in cost savings by 2021. In addition, the company's free cash flow generation has improved significantly over the past several quarters and its balance sheet remains robust. We believe that management will build value for shareholders via restructuring efforts and that the rebound in end market demand will support higher earnings for the company.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund third-quarter 2020 commentary.
