CCie Automotive, the large Spanish auto parts maker, said first half operating profits rose 10% to EUR36m, boosted by strong international sales and cost cutting.
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Revenues increased 10% to EUR451m while earnings before interest, tax, depreciation and amortisation (EBITDA) also rose 10% to EUR68.2m. Net profit increased 20% to EUR22m.
Cie’’s results came shortly after fellow Spanish parts maker Ficosa International reported a 6% turnover rise to EUR824m in 2005, driven by growth in the emerging markets.
In a statement, the Barcelona-based firm said net profits totalled EUR14m but did not provide a year-ago comparison.
Cie said strong demand for its parts from emerging markets in Latin America and eastern Europe helped boost profits. This, coupled to efforts to streamline manufacturing and other efficiencies, helped it offset weak growth at home and in western Europe.
Cie said Brazil, Czech Republic and Mexico were particularly buoyant markets during the period and that they now account for 33% of sales.
The company added that emerging markets are key to its future growth and that it has struck a joint venture with Mexican counterpart DESC Automotriz to grow in Mexico and the NAFTA block.
The deal follows the acquisition of Sada Forjas in Brazil and negotiations to purchase Romanian rival Matricon, Cie said.
It predicted that 2006 sales and profits would grow by a two-digit figure.
“We are confident that the [high demand] trend will continue,” chief executive Ignacio Martin said.
Ficosa, which makes mirror and control systems, said a high number of vehicle launches in emerging markets bolstered its bottom line. The company said it invested EUR36m last year to expand its international presence.
Ficosa added that the expansion was crucial to offset the negative effects of “zero growth” in key markets such as Europe and NAFTA.
Ficosa, whose customers include Nissan, Mazda, Fiat and PSA Peugeot-Citroen, noted that it has established a new antenna-making unit which it hopes will drive future revenues.
Ivan Castano
