Winterthur, Switzerland — Autoneum, the automotive interiors and seating company, generated sales of CHF 730.6m ($794m) in the first half of 2020, a fall of 37% on the same period in 2019.
EBIT across the business went from CHF16m in the first half of 2019 to a loss of CHF 32m in the first half of 2020.
Chairman Hans-Peter Schwald and CEO Matthias Holzammer explained the situation in a joint letter to shareholders. 'Like the entire automobile industry, Autoneum was massively impacted by the effects of the coronavirus pandemic in the first half of the year,’ they said.
‘The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites.'
They added that the reduction in revenue of 27% reflects the development of the market in the first half of 2020, which contracted 32% year-on-year.
The company responded by cutting costs and laying off staff where possible. It said that this and earlier efficiency improvements could not offset fixed costs which are related to capacity. Cash flow was increased by spending less on investments and updating lending arrangements.
Looking ahead, Autoneum expects its revenue to develop along with the market. 'Although customers’ production volumes should increase in the second half of 2020… latest forecasts indicate that they will remain clearly below the level of the second half of 2019,' the company said.
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