DGAP-News: Vitesco Technologies Group AG
/ Key word(s): Quarterly / Interim Statement/Quarter Results
Q1 2022: Vitesco Technologies reports record order intake for electrification products
Of this, €3.5 billion were attributable to business unit Electrification Technology. In total, the company booked an order volume of €4.5 billion in the past quarter. This volume includes Hyundai Motor Group’s 2-billion-euros-order for the EMR4 axle drive, which was announced recently.
In addition, another major order has recently been booked: Vitesco Technologies will supply its battery management system to a global customer for around €1.7 billion. The system is designed for the 400-volt and 800-volt architecture of battery electric vehicles and enables wireless communication between the individual components. The start of production is planned for the first half of 2024.
Group revenues in the first quarter were €2.26 billion (Q1 2021: €2.30 billion), a decrease of 1.9 percent. Adjusted for changes in the scope of consolidation and exchange rate fluctuations, revenues fell by 5.6 percent. Sales of electrification products totaled €263 million. Adjusted operating profit increased year-on-year to €45.2 million (Q1 2021: €17.1 million). This corresponds with an adjusted EBIT margin of 2.0 percent (Q1 2021: 0.7 percent). Net income in the first quarter amounted to €-11.3 million (Q1 2021: €-31.7 million). Earnings per share stood at €-0.28.
CFO Werner Volz: “The consequences of the COVID-19 pandemic, the continuing supply bottlenecks for important components such as semiconductors, price increases for raw materials and energy and the effects of Russia's aggressive war in Ukraine on global supply chains present us – like the entire industry – with major challenges. However, we were able to achieve a solid overall result again this quarter through a continued strict cost discipline. We even managed to exceed market expectations.” This led to an advance release of the preliminary financial figures for the first quarter of 2022.
Free Cashflow amounted to €48.2 million (Q1 2021: €239.1 million), mainly due to the build-up of inventories given the tight supply situation and to an increase in trade receivables. The previous year’s figure was positively influenced by proceeds from the sale of business operations and spin-off effects.
As of March 31, 2022, Vitesco Technologies has a solid balance sheet with an equity ratio of 35.9 percent (March 31, 2021: 33.8 percent). The strong liquidity position was increased and further strengthened in the past quarter by the placement of a Schuldschein loan in the amount of €200 million.
The economic impact of the Russian war of aggression in Ukraine on the entire industry, including Vitesco Technologies, cannot yet be fully assessed. In the first quarter, however, the company’s overall result was burdened by effects of inflation in the form of increased energy and transport costs. The consequences of the re-emergence of the COVID-19 pandemic in China were also noticeable in the first quarter. “The pandemic has affected the production capacities of our sites in China in various ways. Daily, we hold intensive talks with our customers and suppliers to ensure the stability and sustainability of production and supply to the greatest possible extent,” said CEO Andreas Wolf.
Business unit Electrification Technology achieved revenue of €161.7 million in the first quarter (Q1 2021: €165.2 million). Despite the sustained demand for high-voltage electric drives and power electronics, the semiconductor market shortage situation also caused a drop in sales in business unit Electrification Technology. The gross margin was nonetheless improved compared to the previous year’s quarter. Adjusted EBIT improved to €-68.1 million (Q1 2021: €-73.3 million). This corresponds to an adjusted EBIT margin of -42.1 percent (Q1 2021: -44.4 percent).
In the Sensing & Actuation business unit, revenues came in at €885.9 million in Q1 2022 (Q1 2021: €876.5 million). Adjusted EBIT amounted to €84.3 million (Q1 2021: €67.1 million). This corresponds to an adjusted EBIT margin of 9.5 percent (Q1 2021: 7.7 percent). The effects of the semiconductor shortage were also felt in this business unit, particularly in the form of higher material prices. The growth in demand in Germany and North America contributed to the improvement in results.
Expectations for the second quarter and fiscal year 2022
Vitesco Technologies expects sales of €8.6 to €9.1 billion for 2022. At the same time, the company assumes that the adjusted EBIT margin will be between 2.2 and 2.7 percent. A free cash flow of more than €50 million is expected for 2022.
KEY FIGURES FOR THE FIRST QUARTER OF 2022 COMPARED TO THE PREVIOUS QUARTER OF 2021
Source: Company information.
1) Before amortization of intangible assets from purchase price allocation, changes in the scope of consolidation, and special effects.
2) Capital expenditure without rights of use (IFRS 16).
Vitesco Technologies is a leading international developer and manufacturer of cutting-edge drive systems for sustainable mobility. With intelligent system solutions and components for electric, hybrid, and internal combustion drive systems, Vitesco Technologies is making mobility clean, efficient, and affordable. The product portfolio includes electric drives, electronic controls, sensors and actuators, and exhaust gas treatment solutions. In 2021, Vitesco Technologies generated sales of around €8.3 billion and employs a workforce of around 37,000 employees at 50 locations. Vitesco Technologies is headquartered in Regensburg.
13.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Vitesco Technologies Group AG|
|Phone:||+49 941 2031 0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1351279|
|End of News||DGAP News Service|