25 July 2019
TURNOVER INCREASES +1.3% IN THE FIRST HALF OF 2019
Akwel (FR0000053027, AKW, PEA-eligible), the automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, has posted consolidated turnover of €566.5m in the first half of 2019, up +1.3% compared to the first half of 2018.
Consolidated turnover (1 January to 30 June 2019)
| In € millions - unaudited | 2019 | 2018 | Variation | Like-for-like variation (1) |
| 1st quarter | 293.0 | 280.3 | +4.6% | +6.6% |
| 2nd quarter | 273.5 | 279.0 | -2.0% | +0.2% |
| 1st half-year | 566.5 | 559.3 | +1.3% | +3.4% |
(1) Comparing like-for-like figures.
GOOD RESISTANCE IN THE 2ND QUARTER OF 2019 WHEN COMPARING LIKE-FOR-LIKE FIGURES
At €273.5m, consolidated turnover in the second quarter of 2019 was down slightly at -2.0% but almost stable when comparing like-for-like figures, with one less working day this quarter compared to the 2018 financial year. The negative impact of foreign exchange rates amounted to €6m in the second quarter, similar to the previous quarter, and remains linked to conversion differences with the Turkish lira. In a global market still in difficulty in the second quarter of the year, the determination of some customers to limit their stockpiles slowed deliveries in June, but early July volumes have returned to more normal levels.
HALF-YEAR FIGURES UP +3.4% WHEN COMPARING LIKE-FOR-LIKE FIGURES
In the first half of 2019, Akwel recorded turnover up +3.4% when comparing like-for-like figures. This performance took place in a global automotive industry under pressure, with a drop in product volumes of around -7% this half‑year, particularly in China and other key emerging markets.
Products and Functions turnover reached €538.7m (+0.8% compared to the first half of 2018), whilst Tooling turnover was €25.0m (+48.7%). The Cooling product line maintained dynamic growth of +14.1%, while the Emission Control product line confirmed its decline with a -5.7% drop this half-year, including -12.1% for SCR tanks.
PRODUCTION SITE GROWTH BEYOND FRANCE AND CHINA
The geographical breakdown of half-year turnover by production zone was as follows:
- France: €178.9m (-9.4%)
- Europe (excluding France) and Africa: €175.9m (+5.4%)
- North America: €131.9m (+6.2%)
- Asia and the Middle East (including Turkey): €75.4m (+17.1%)
- South America: €4.4m (-30.6%)
Activity remains very well focussed on North American sites, in the Europe (excluding France) and Africa region, as well as in Asia and the Middle East, despite ongoing very weak volumes in China. Once again, four sites posted monthly records in the second quarter, two each in Romania and Turkey, while two factories continue to ramp up power in Morocco and Mexico.
NET DEBT DOWN AS OF 30 JUNE 2019
The Group’s net debt was down approximately €18.2m as of 30 June 2019 compared to 31 December 2018, confirming the actions taken to optimise working capital and the planned reduction in industrial investment over the course of this financial year.
CONFIRMING 2019 AND 2020 TARGETS
Given the performance recorded during the first half of 2019, Akwel has confirmed its expectations of further increases in activity in 2019, with a return to positive free cash flow, and its target of achieving turnover in the region of €1.2 billion by 2020.
| Next press release: 2019 half-year results, Thursday 26 September 2019, after the markets close. |
| An independent family group, listed on the Euronext Paris Stock Exchange, Akwel is an automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, offering first-rate industrial and technological expertise in applying and processing materials (plastics, rubber, metal) and mechatronic integration. Operating in 20 countries across five continents, Akwel employs almost 12,000 people worldwide. Euronext Paris – Compartiment B – ISIN: FR0000053027 – Reuters: AKW.PA – Bloomberg: AKW:FP |
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