Akwel anticipates ‘sharp decline' in 2022 operating income

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.

Over the first six months, markets were "negatively affected by supply problems in raw materials and electronic components and by international geopolitical tensions," the company reported.

Akwel did note a "higher level of activity" in the second quarter, with reported turnover up 13.1 percent. On a like-for-like basis, the second quarter increase was 16.9 percent, driven by strong growth in North America.

The gains resulted in stable half-year turnover, up 5 percent year-on-year on a like-for-like basis.

Turnover in Akwel's products and functions segment rose 1.3 percent year-on-year in the first half to $481.5 million. Sales at the company's cooling and air activities increased by 8.3 percent and 2.2 percent, respectively, driven by market-share gains. Its depollution product sales declined 2.6 percent.

Sales by market region were:

• France, $139.2 million (down 1.5 percent);

• Europe (excluding France) and Africa, $138,2 million (down 11.4 percent);

• North America, $146.8 million (up 18.4 percent);

• Asia and the Middle East (including Turkey), $69.6 million (down 2.7%); and

• South America, $2.95 million (down 10.0 percent).