Conti Spinoff Aumovio Struggles with Tough Market - Aumovio’s profits tumble 30% despite new deals with Chinese automakers
Aumovio, a global automotive components manufacturer, has seen a mixed performance in recent months. While it has secured contracts with Chinese automakers, its financial results have been impacted by currency effects and portfolio adjustments. The company, spun off from Continental, reported a net loss and a significant drop in earnings.
Aumovio's revenue fell by 6.9 percent year-over-year to €4.5 billion in the third quarter, with earnings before interest, taxes, and special items dropping by nearly a third (30 percent) to €150 million. The company's operating margin also shrank from 4.5 to 3.3 percent. These declines come despite Aumovio's success in securing contracts with Chinese automakers, although the specific names of these manufacturers remain undisclosed.
CEO Philipp von Hirschheydt attributed the downturn to currency effects and portfolio adjustments. Meanwhile, Aumovio has been focusing on tailoring its processes more closely to the automotive sector and operating more efficiently as an independent entity. The company sold a drum brake plant in Italy as part of these efforts.
Aumovio, with over 100 sites worldwide, continues to navigate the subdued global auto demand. Despite the recent financial setbacks, the company is optimistic about its future, as evidenced by its growing contracts with Chinese automakers. Aumovio's focus on operational efficiency and sector-specific tailoring is expected to help it weather the current challenges.
