AKWEL, the automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, has posted consolidated turnover of €273.5 mil in the first quarter of 2020.
The turnover was down by -6.6% compared to the first quarter of 2019, and it was also down by 5.9% when comparing like-for-like figures, including an exchange rate impact of €2.3 mil, according to a statement.
This quarterly performance reveals two very contrasting trends: significant growth in business in the first two months of the year (+4.0%), followed by a sharp decline in March (-27.5%) with steep falls in the automotive market as a result of the Covid-19 crisis.
Under these exceptional conditions, AKWEL has largely outperformed its market (with global production down by 23.6% over the same period) due to its dynamism at the start of the year and low level of exposure to the Chinese market.
In addition, the net financial debt (excluding IFRS 16) has fallen by €24.2 mil since Dec 31, 2019, due to record cash flow generation during this quarter. In this time of crisis, AKWEL attaches particular importance to preserving its financial resources and has succeeded in once again generating major cash surpluses during April.
It already appears that the second quarter will be more difficult than the first, with more heightened and global exposure to the crisis except in China, where the group’s three sites have already resumed their activities since mid-March.
With its capacity for fast decision-making and adaptation, its effective strategic model and a particular strong financial position, AKWEL is well placed to come through this unprecedented crisis in the automotive market (€1 = RM4.714). – May 18, 2020, Bernama
