Italian conglomerate CIR sees no improvement in second-quarter results at its auto components unit Sogefi after a weak first quarter, CEO Rodolfo De Benedetti has said.
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Sogefi’s net Q1 result swung to a loss of EUR8.8m from a profit of EUR9m a year earlier. It said full-year sales would be significantly lower than the prior year and it was cutting costs, Reuters reported.
“In the quarter which is under way there are no particular signs of change or improvement … [The business climate] is very demanding,” De Benedetti told the news agency on the sidelines of a conference.
Asked about Fiat’s proposed tie-up with Opel, he said it could have “more advantages than disadvantages” for Sogefi because it could get more business from a combined company.
Fiat’s partnership with Chrysler could also drum up more business for Sogefi, he added.
Sogefi’s supplies to GM Europe are “marginal”, he said. In 2008, Sogefi got 8.6% of its sales from Fiat.
