Akwel quarterly income falls as manufacturing disruption continues

Champfromier, France – Automotive and heavy vehicles parts supplier Akwel has seen a 10% decline in first quarter sales amid automotive and raw materials supply chain disruptions.

Sales fell to €246 million in the three months to end of March, a decline of 10.1% year-on-year and 4.4% at constant scope and exchange rate, said the supplier of fluid management systems and mechanisms 5 May.

Akwel linked the decline to continued production disruptions due to the shortage of raw materials and electronic components.

The currency fluctuations led to a €15.5-million decline compared to the first quarter of 2021, with the Turkish lira accounting for a negative effect of €20.7 million and the US dollar for a positive impact €4.9 million.

The difficulties, said the French supplier, were amplified at the end of the quarter with the events in Ukraine.

Akwel reported a decline in sales across all geographical regions, bar North America where it registered a 6% growth to €71 million.

The company’s largest markets, i.e. France and Europe saw sales fall 10% and 20% respectively to €70 million and €69 million.

Asia and the Middle East, including Turkey, reported a 15% decline in sales to €34.4 million, while South America posted a 21% fall to €1.3 million.

The group's products & functions sales reached €239 million, down 9% compared to the first quarter of 2021.

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

As for the outlook, the French manufacturer said visibility in 2022 remained “particularly weak” on the evolution of the market and the prospect of a return to more normal global automotive production.

“Difficulties in the supply of raw materials and components will continue to weigh on the organisation and activity of manufacturers and equipment suppliers,” it added.

In terms of the war in Ukraine, Akwel said while not directly exposed to the situation, it remained cautious in its annual forecasts and anticipated, at this stage, “a moderate growth of its activity in 2022.”