Duerr (XTER:DUE, Financial), a German mechanical and plant engineering firm, was a top detractor for the quarter. Although we believed the company’s fiscal-year earnings results were decent, they proved disappointing to investors as net income, revenue and earnings fell short of analysts’ estimates. However, free cash flow generation was strong, order intake set a record and finished up 31% year-over-year, and management’s guidance for 2022 largely aligned with our expectations. We spoke with CFO Dietmar Heinrich in January and new CEO Jochen Weyrauch in March. We believe the company remains well-placed to restore profitability to pre-Covid-19 levels. In our view, Duerr remains a compelling investment with multiple avenues for growth in the core business as well as exciting options in battery coating, medical technology and software.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund first-quarter 2022 commentary.