Akwel cautiously optimistic about recovery prospects

Champfromier, France – Automotive and HGV components & systems maker Akwel is "cautiously optimistic about recovery in 2023", following a 30% decline in earnings last year.

The French group anticipates “slight increase in turnover”, in the context of “still very limited visibility” on the global automotive market.

However, Akwel also expects a “still tense situation” on production costs and is to focus on improving its rate of passing cost rises on to customers.

In its 2022 audited results, Akwel reported a 7.4% year-on-year increase in sales to €990 million – though still down 10% on pre-Covid levels of 2019.

Earnings (EBIDTA), fell 30.6% to €81 million amid “strong tensions on the supply of raw materials and electronic components” to the automotive market.

Here, Akwel said price increases on raw materials, components, energy, transport and labour represented an additional cost of €85 million in 2022.

Of the higher costs, it noted, 55% were passed on to customers, with the trend improving to a 60% rate in the second half of last year.

Akwel's automotive products portfolio includes fluid-management, cooling systems, door mechanisms, as well as structural components for electric vehicle powertrains.