Aumovio Exceeds Q1 Profit Expectations With Cost Cuts and Improved Margins
Q1 Financial Results and Strategic Initiatives
Stronger Operating Profit and Margins
May 7 (Reuters) - German automotive supplier Aumovio reported a better-than-expected first-quarter operating profit on Thursday, helped by cost cuts and an improved product mix.
The company, spun off from tyre maker Continental last year, posted an adjusted operating profit of 106 million euros ($124.6 million), up from 93 million last year. Analysts polled by Vara had expected 102.5 million euros.
Its profitability margin improved to 2.4% from 1.9%, coming ahead of the 2.3% expected by analysts.
CEO Statement and Outlook
"Despite persistent market weakness, we have achieved a solid start to our first full fiscal year," said CEO Philipp von Hirschheydt, confirming full-year guidance.
Operational Developments and Cost Reduction
Investor Interest in Key Sites
Aumovio, which manufactures brakes and safety systems, vehicle software, displays and electronics, said it has identified suitable investors for its sites in Mechelen, Belgium, and Rheinboellen, Germany.
Both transactions remain subject to regulatory approvals and are expected to close in the coming months.
Job Cuts and Margin Targets
Cost-Reduction Programme
The company aims to cut up to 5,500 jobs worldwide by the end of the year under a major cost-reduction programme focusing on 45 production sites at most, as it seeks to become leaner and boost margins. It is aiming for a long‑term operating margin of 6%–8%, compared with 3.9% in 2025.
($1 = 0.8509 euros)
(Reporting by Amir Orusov; Editing by Subhranshu Sahu)
