CHAMPFROMIER, France—While confirming previous projections of moderate sales growth, automotive and HGV equipment and systems maker Akwel foresees a major decline in operating income over the 2022 financial year.
Automotive supply-chain difficulties, particularly in Europe, and rising costs of raw materials, components, energy, transport and labor "will have a major impact" on operating profitability this year, Akwel said July 28.
These increases, said the French specialist in vehicle fluid management systems, "cannot be easily passed on to sales prices. In all cases, this requires long negotiation periods.
"This time lag leads Akwel to anticipate a significant decrease in its current operating income in both the first half and second half of 2022," the company added.
For the first half of 2022, Akwel posted consolidated turnover of $496.7 million (€488.1 million), stable compared with the first half of 2021.