According to foreign media reports, car seat supplier Adient said that in the second quarter of this year (April to June), the company’s net profit fell sharply and revenue fell, partly due to weak demand in Europe and inventory problems.
Andotuo reported results from April to June this year.
photo source: Andotuo, in the quarter ended June 30, Andotuo’s revenue fell 8% year-on-year to $3.
7 billion.
adjusted net profit plunged 69% to $29 million.
adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) fell 27% to $202 million due to lower customer production Adjusted profit margin before interest, tax, depreciation and amortization fell 1.
4 percentage points to 5.
4% compared with the same period last year.
At the end of June, cash and cash equivalents were $890 million.
free cash flow (operating cash flow minus capital expenditure) was $88 million.
Andoto revealed that its sales in Europe, the Middle East and Africa all fell sharply in the second quarter of this year.
Adjusted profit margins in these regions fell sharply from 7.
2 per cent to 1.
9 per cent.
“We believe that the main reason for the poor performance is related to product launches and inventory management of some customers,” Jerome Dorlack, CEO of Andotuo, said on the earnings call on August 6th.
In Europe, we will be more cautious because of the decline in procurement volume and weak customer projects.
” Jerome Dorlack said the upgrade of the product portfolio would reduce the pressure on Andoto’s inventory glut in Europe.
In the Americas, adjusted revenue rose 4 per cent year-on-year to $99 million, despite an adverse customer mix and delays in the release of key projects from its partners.
Jerome Dorlack said it expected its sales in the Americas to return to growth as customers cleared excess inventory and pushed ahead with new product launches.
In addition, the cooperation with Chinese automakers may bring dawn to Andotuo’s future growth opportunities.
Andotuo is shifting its long-term strategic focus to Asia, particularly China, where it has achieved improved profit margins.
Andoto’s Asian sales rose about 1 per cent year-on-year, thanks to a 6 per cent increase in sales in the Chinese market.
In a report to analysts, Andoto said it had reached a new business agreement with Chinese carmaker GAC GROUP.
(Guangzhou Automobile Group Co.
) to supply seat systems for GAC MOTOR ES9 and a Guangzhou Auto car.
In addition, the company also provides interior and foam materials for BYD dolphin models, which went on sale in Thailand in July.
Based on its performance in the second quarter of this year, Andotuo lowered its full-year sales forecast from “US $14.8-14.98 billion” to US $14.
6 billion.
adjusted profit before interest, tax, depreciation and amortisation was reduced to US $870 million from US $9-920 million.
Andotuo shares fell 6.
3% to $21.
39 in midday trading on Aug.
6 after the results were announced.
In the second quarter of this year, Andoto bought back $75 million worth of shares, a total of 2.
6 million shares, and the company will continue to buy back its shares.
Photo: Andorra, Andorra ranks 16th on the US Automotive News 2024 Top 100 list of global auto parts suppliers, with global sales of $15.
4 billion selling auto parts to automakers in 2023.
, return to the first electric network home page >.
