Akwel expects 40% earnings drop in 2022

CHAMPFROMIER, France—French automotive and HGV equipment and systems maker Akwel has posted a 7.1-percent year-on-year increase in turnover, to $1.04 billion (unaudited) for 2022, or 11.3 percent on a like-for-like basis.

However, Akwel expects operating income to fall by around 40 percent for 2022, due to "supply constraints and difficulties in passing on the inflationary impacts recorded across all operating costs."

The like-for-like sales performance reflected respective gains of around 17 percent, 22 percent and 15 percent in quarters two, three and four, which offset a first-quarter decline of around 4 percent, Akwel reported Feb. 9.

In the final quarter, for instance, Akwel's consolidated turnover of $262.3 million, was up by 11.5 percent when comparing published figures and by 14.6 percent when taking exchange rates and scope as constants.

The third consecutive quarter of increased activity was achieved "in an environment that continues to be disrupted by component shortages and inflation," Akwel noted.

The group's 2022 sales figure, however, came in around 10 percent lower than in 2019, the last financial year before the health crisis and the fall in global markets.

Currency fluctuations resulted in an annual negative impact of $40.1 million, with the Turkish lira accounting for $75.9 million and the U.S. dollar $34.9 million.

Growth was boosted particularly by increased demand in North America, where sales increased 27.2 percent year-on-year in 2022 to reached $314.2 million.

Elsewhere, Akwel's breakdown by production zone showed: France, $282.5 million (+1.5 percent); Europe (excluding France) and Africa, $282.4 million (-3.4 percent); Asia and the Middle East (including Turkey), $154.5 million (+6.7 percent); South America, $5.7 million (-21.0 percent).

For the 2023 financial year, in an environment in which visibility over the global automotive market remains very limited due to economic and geopolitical tensions, Akwel anticipates a slight increase in turnover.

Akwel defines itself as an automotive and HGV equipment and systems manufacturer specializing in fluid and mechanism management and structural parts for electric vehicles.