Akwel reports decline in sales, profits for 2021

CHAMPFROMIER, France—Automotive and heavy vehicles parts supplier Akwel has seen a 35-percent year-on-year decline in operating income on slightly lower annual sales in 2021.

The French group posted consolidated sales of $1.04 billion (€922.4 million) in 2021, down 1.6 percent compared to last year but "up 2.8 (percent) comparing like-for-like figures," said the manufacturer of fluid management systems Feb. 10.

While sales were up 26 percent at $550 million in the first half, third- and fourth-quarter results saw declines of 19.3 percent and 22.4 percent, respectively, to bring the down the overall revenue to $1.04 billion.

The group's products and functions sales reached $997 million in 2021, with a slight 2.5-percent growth experienced in "cooling activities," and a 1.9-percent growth within "mechanisms."

The division manufactures air intake pipes, oil and fuel cooling systems, and mechanisms for opening and closing doors.

Currency fluctuations resulted in a significant negative impact of $45.5 million over the year, with the Turkish lira accounting for $34.8 million and the U.S. dollar accounting for $11.1 million, Akwel added.

Akwel said the 2021 financial year as a whole was characterized both by an upturn in activity following the 2020 crisis and by a major lack of visibility regarding supply.

In a context of high volatility in terms of manufacturers' production levels, the automotive supplier said it succeeded in "keeping up with its clients' demand."

The French group noted, however, that supply limitations will weigh on the current operating income for 2021, which it said, "is expected to have fallen by around 35 (percent) for a similar level of margin to the 2018 and 2019 financial years."

Akwel did not provide further details, but according to its previous results statements, the company's earnings stood at $147 million and $140 million in the years 2019 and 2018, respectively. Operating margin in 2019 was 8.4 percent, up 1.1 percent compared to the year before.

The group noted that visibility regarding the global vehicle market over 2022 remained poor.

"Akwel nonetheless anticipates an increase in its turnover and will focus its efforts on its industrial model," the group said, adding that "new mobility solutions" will be the center of focus for its upcoming investments.