Autoneum has posted first-half net profit before special effects up 1% to CHF61.2m (US$65m) while sales rose 2.4% to CHF1.1bn.
“Despite a weak market environment, Autoneum continued its growth and increased net sales in local currencies by 4 % in line with guidance,” said an Autoneum statement. “Automobile production in Europe, Asia and in the SAMEA region (South America, Middle East and Africa) rose compared to the first half of 2016, whereas production volumes in North America were declining.
“Despite the swelling inventories of automobile manufacturers in North America and correspondingly lower call-off orders at Autoneum, net sales of Business Group North America were almost on a par with the previous year.
“In contrast, Business Groups Europe, Asia and SAMEA recorded organic sales growth that considerably exceeded the market level in the first six months. This growth was largely driven by delivery of high-volume models in Europe and market share gains in Asia.”
In particular, the improvement of Business Group Europe’s operating result enabled the supplier to increase its profitability. EBITDA before special effects grew to CHF129.3m in the first half of 2017 (prior-year period: CHF123.8m), corresponding to an EBITDA margin of 11.6%.
Based on anticipated further softening of demand in the North American market in the second half of 2017, Autoneum expects net sales growth in 2017 to be above market, but below the annual target of 4% to 5% and the EBIT margin to exceed 8%.