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25th July 2019, Winterthur

Revenue growth in declining market for Autoneum

Battery undercovers made of Ultra-Silent are designed to meet the specific acoustic and thermal management requirements of electric vehicles. © Autoneum

Battery undercovers made of Ultra-Silent are designed to meet the specific acoustic and thermal management requirements of electric vehicles. © Autoneum

In a strongly declining market, Autoneum has increased revenue in local currencies by 1.9% in the first six months of 2019, thanks to numerous model ramp-ups. At CHF 1 156.1 million, revenue in Swiss francs reached the previous year’s level (CHF 1 159.4 million).

All four Business Groups outperformed the market. The turnaround programme in North America is showing progress, but the persisting operational inefficiencies at two US plants continue to impact the profitability of the entire Group. Accordingly, EBIT fell to CHF 16.4 million in the first semester, while the anticipated negative net result totalled CHF –6.0 million.

“The weak global macroeconomic environment, ongoing trade disputes and the resulting uncertainty among car manufacturers and consumers led to a further sharp decline in global light vehicle production in the first half of 2019,” the company explains. “In this difficult market environment, Autoneum was able to increase its revenue by 1.9% in local currencies in the first six months compared to the prior-year period, particularly thanks to numerous model ramp-ups.”

Results

At CHF 1 156.1 million, revenue in Swiss francs reached the prior-year’s level (CHF 1 159.4 million). While the number of vehicles produced in all regions declined, Business Groups (BG) North America, Asia and SAMEA (South America, Middle East and Africa) grew and outperformed the respective market developments, two of them significantly. Only at Business Group Europe did the sharp drop in production volumes among vehicle manufacturers result in fewer call-offs and lower year-on-year revenue.

In Business Group North America, the turnaround programme to resolve the operational problems in two US plants is showing progress, but the persisting inefficiencies continue to impact the profitability of the entire Group. In addition, the lower capacity utilisation of the European plants and the new production capacities in China not yet operational due to the market slowdown burdened the company’s result. Therefore, EBIT decreased to CHF 16.4 million in the first semester, which equals an EBIT margin of 1.4%. Excluding the effects of the initial application of the new standard for lease accounting (IFRS 16) in the first half of 2019, EBIT totalled CHF 12.8 million (prior-year period: CHF 86.4 million). The EBIT margin on a comparable basis amounted to 1.1% (prior-year period: 7.5%).

This led to the expected negative net result, which was at CHF –6.0 million (prior-year period: net profit of CHF 60.1 million).

Committed to electromobility

Autoneum is the preferred partner for automobile manufacturers for lightweight noise- and heat-reducing components. The company supplies the majority of the globally available electric vehicle models with components that thanks to their low weight enable a greater driving range while simultaneously positively influencing noise. In view of the continued increase in demand, Autoneum expanded its broad product portfolio in spring with battery undercovers made of Ultra-Silent, which are designed to meet the specific acoustic and thermal management requirements of electric vehicles.

With battery undercovers made of Ultra-Silent, the company has adapted this textile underbody technology for use in electric vehicles for the first time. Noise-reducing components are essential in electric models because noise sources such as fans, pumps and electronic drive elements are more audible due to the lack of engine noise and therefore impact driving comfort. At the same time, these battery undercovers are also especially environmentally friendly because they are mostly made from recycled PET fibres. As of 2020, the first components will be produced in series for an electric model of a German premium car manufacturer in Gundernhausen, Germany.

www.autoneum.com

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