Akwel earnings down amid soaring materials, energy costs
23 Sep 2022
Sales improve marginally but market remains “widely disrupted”
Champfromier, France – French automotive and HGV equipment and systems maker Akwel has seen a “marked decrease” in first half earnings (EBITDA), due mainly to increasing costs.
Over the first six months of the year, the French group posted a 35% decrease in earnings to €42 million, on 0.7% higher sales of €491 million.
Sales, said Akwel in a 22 Sept statement, improved due to a strong 18.4% growth in North America in a “market that remains widely disrupted by supply limitations.”
The group linked the significant drop in earnings to the sharp increase in inflation, impacting the cost of raw materials, components, energy, transport, and labour.
“For Akwel, these substantial rises represent a cost increase of €31.6 m over the half year and are partially and gradually reflected in sales prices,” the French automotive supplier added.
The group noted that as part of its growth strategy, it had set itself the target of accelerating the development of product potential in 2022.
This, it said, will mean continuing to expand a 2020 partnership with Tallano Technologie to scale up the Tamic solution developed for capturing fine particles emitted during vehicle braking.
In addition to fluid management and mechanisms, Akwel will also increase focus on structural components for electric vehicles, such as electronic modules, battery pack interiors, EV flaps, service battery casings, and cable ducts.
“The group will be able to seize the many opportunities linked to the rapid roll-out of electric vehicles while building on its existing technological expertise and resources,” it added.
As for the full year outlook, Akwel confirmed “moderate turnover growth” for 2022, with the third quarter expected to bring “good performance.”
While anticipating to see the effects of sales price increases in the second half, the group said it remained ‘cautious” about its earnings forecast.