Flat but complex first half for Autoneum

Winterthur, Switzerland — Autoneum, which supplies automotive seating and interiors, had Group sales of CHF 1.16 bn ($1.17bn) almost unchanged on the same period in 2018.

EBIT across the business plunged 81.0% and hit CHF 16.4m the first half of 2019.

'Trade disputes and the resulting uncertainty among car manufacturers and consumers led to a further sharp decline in global light vehicle production in the first half of 2019,' said Martin Hirzel, CEO.

The company's Europe business sales subsided by 6.70% between the first half of 2018 and 2019. They reached CHF 467.6m in the first half of 2019. This compares with CHF 501.2m the first half 2018.

Autoneum said EBIT in the division fell much more sharply, by 43.25%. It hit CHF 24.8m the first half of 2019. This compares with CHF 43.7m the 2018 period.

European revenue fell between the reporting periods, but at a slower rate than the market in the region, Autoneum said. Lower capacity utilisation and higher labour costs hit EBIT.

Autoneum's North America business sales grew by 6.42% between the first half of 2018 and 2019. They reached CHF 502.5m the first half of 2019. This compares with CHF 472.2m in the first half of 2018.

However, EBIT in the division dived 279.89%. Divisional EBIT was 33.1m in loss in  the first half 2019. This compares with CHF 18.4m in the first half of 2018.

Hirzel said that 'the turnaround program to resolve the operational problems in two US plants is showing progress. But the persisting inefficiencies continue to impact the profitability of the entire Group.'

The company's Asian business sales shrank by 1.73% between the first half of 2018 and 2019. Sales reached CHF 125.1m the first half of 2019. This compares with CHF 127.3m in the first half of 2018.

Meanwhile, EBIT in the division shrank by 46.90%. It reached CHF 6m in the first half 2019. This compares with CHF 11.3m in the first half of 2018.

The business held 'its ground in a sharply shrinking and highly competitive market, especially in China. Higher call-offs by German and Japanese automobile manufacturers offset the decline in volumes among US customers,' said Herzel. The fall in Swiss Franc terms, was due to currency effects. Chinese automotive production is in a slump and the company's expansion is hitting EBIT. Cost saving plans are in place.

The company's SAMEA business grew sales by 13.57% between the first half of 2018 and 2019. They reached CHF 63.6m the first half of 2019. This compares with CHF 56m in the first half of 2018.

At the same time, EBIT in the division rose by 35.48%. It reached CHF 4.2m in the first half 2019. This compares with CHF 3.1m in the first half of 2018.

Vehicle production in the South America, Middle East, Africa region fell by 15% in the first half of 2019. But financial performance was better because of high volume orders from Japanese customers in Argentina and Brazil. A large order from a French Carmaker in Turkey also helped the numbers.

Currency Conversion: XE.com