Gestamp has cut its profit by 43.7% year-on-year to 126.8 million euros, according to the company’s third quarter results published this Tuesday. The vehicle components manufacturer has been accusing the global slowdown of the car sales and the difficulties of deployment in the electric car.
The firm led by Francisco J. Riberas has suffered a slowdown in its growth due to lower vehicle sales in Europe. As detailed in a statement sent to the National Securities Market Commission (CNMV), these results have been reflected, above all, in Western Europe – its main market – where income has suffered a decrease of 298.6 million eurosfrom 8.6%, to 3,157.5 million euros.
This, the firm indicates, is explained in part by the “decrease in light vehicle production volumes in the region by -3.1%”, to which has been added a decrease in the price of raw materials.
Despite this, Gestamp presented growth in income at exchange rates constant is 6.3 percentage points higher with respect to the rest of the companies in the sector.
In Eastern Europeanother of the key regions for the group, Auto revenues grew by 6.5%until the 1,337.6 million, while in the Mercosur decreased by 6.7%, up to 674.1 million.
At a general level, the Gestamp’s turnover descended in a 1.6% between the first three quarters of this year and those of the previous one, from 9,071 million euros to 8,926 million euros.
The income item includes a contribution of 435.3 million Gescrap. Auto revenues (excluding Gescrap) fell 1.1% mainly due to a difficult comparable figure and the negative impact of the exchange rate. In terms of profitability, the gross result exploitation or ebitda fell by 7.4%, to 936 million. In terms of margin ebitdathe Auto business reached 10.6%, below the target for the year due, among other reasons, to volatility, seasonality and inflation.
Uncertainty and volatility
The firm has highlighted a complicated context for the automobile sector, in which it will have a short-term impact on the component manufacturer falling production volumesthe “uncertainty and volatility” in Europe due to the slowdown of electric vehicles.
This, together with a “extraordinarily negative currency fluctuation“, have led Gestamp to update its forecasts for 2024 to reflect lower growth and, consequently, lower operating leverage and lower free cash flow generation.
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