Gentherm has posted second-quarter product revenue down 44% to US$136.1m.
"I am proud of the team for their strong execution in the second quarter despite the unprecedented uncertainties created by the worldwide COVID-19 pandemic," said Gentherm president and CEO, Phil Eyler.
"While the company's revenue performance reflects the challenges in the underlying markets, our ongoing disciplined approach to managing expenses allowed us to reduce operating expense by 30% from a year ago. In Medical, we delivered double-digit revenue growth both year over year and sequentially.
"Importantly, we generated a 24% increase in cash flow from operations in the first half of 2020 versus the prior-year period.
"While the COVID-19 pandemic will continue to create challenges and uncertainties in the near term, the momentum we are seeing in new awards, winning the coveted General Motors Supplier of the Year award, coupled with aggressive cost management and our strong balance sheet position us well to continue to deliver over the long term."
Automotive revenues declined 45.8% year over year. All product categories saw revenue declines except Electronics. Adjusting for foreign currency translation, organic Automotive revenues decreased 44.9% year over year.
As a result of the unprecedented uncertainty facing the automotive industry and global economy, Gentherm withdrew its 2020 guidance on 25 March, 2020 and is not providing an update at this time.
However, the company expects product revenues in the third quarter of 2020 to improve sequentially to be in the range of US$210m to $240m.