Grupo Antolin has posted first-quarter sales down 17% to EUR1.05bn (US$1.17bn).
Sales declined due to the global COVID-19 pandemic, which caused world vehicle production to drop 35% in March and 23% in the first quarter.
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Despite the sharp fall, the supplier says its sales outperformed worldwide automotive production. Ebitda reached EUR77m compared to EUR100m in the same period the year before.
The results were strongly impacted by the drop in sales in China, since February and in other countries since mid-March, as well as by the short time frame in which to adapt the company’s cost structure to the unexpected drop in revenue because of the COVID-19 crisis.
Since the beginning of the pandemic, Grupo Antolin has put in place an action plan with several priorities:
- To protect the health and to ensure the safety of all employees: The company implemented a contingency plan against COVID-19 throughout the organisation meeting the recommendations of the health authorities
- To ensure business continuity and liquidity: Grupo Antolin has applied financial measures, such as reducing investments, controlling stocks and temporarily lowering executive salaries
- Dividend payments in 2020 have also been cancelled by shareholders. From an operational point of view, production was temporarily suspended at most plants and centres in the world following carmakers’ plant shutdowns
- Grupo Antolin has a solid financial position to face this situation with cash of EUR460m and EUR150m of credit lines and non-recourse factoring, on 30 April. Furthermore, Antolin’s syndicated lenders have renewed their support for the company by making loan conditions more flexible
- To be prepared to safely restart activity, depending on the respective health situation of each country and the decision of the customers. A prevention protocol against COVID-19 has been approved to guarantee this safe restart
In China there has been a gradual return to normal activity in all of Grupo Antolin’s plants since March.
European and NAFTA factories have progressively been resuming production since the beginning of May. Currently, 92% of European plants and 57% of NAFTA facilities are operational, albeit at low rates, below 30%.
