Aumovio to pass on cost pressures from war, tariffs
Aumovio’s Financial Performance and Response to Global Challenges
By Amir Orusov
May 7 (Reuters) - German automotive supplier Aumovio said the firm would pass on higher costs linked to the Middle East war and U.S. tariffs to their customers, as it reported a first-quarter operating profit beat on Thursday.
Impact of Global Events on the Auto Parts Sector
Europe’s auto parts sector has been struggling with U.S. tariffs, softer demand and competition from China, with the Middle East conflict adding fresh pressure through supply-chain disruptions, higher raw material and energy costs.
Cost Pressures and Customer Compensation
Higher raw material, energy and memory costs linked to the conflict are being partially passed on to customers, typically with a three- to six-month lag, with compensation expected later this year to support second-half profitability, CFO Jutta Doenges said during an analyst call.
Tariffs and Future Financial Impact
The company expects a double-digit million euros impact from U.S. tariffs in 2026, which will be fully passed on to customers, Doenges told Reuters in an interview.
Quarterly Financial Results
Aumovio, 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.
Order Intake and Customer Decisions
The first-quarter order intake fell almost 32% to 3.95 billion euros, as several car producers postponed placing orders into the second quarter, the company said.
"Customers are delaying decisions, but not cancelling them – the overall pipeline remains intact," Doenges said.
Company Operations and Future Plans
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.
($1 = 0.8509 euros)
(Reporting by Amir Orusov; Editing by Subhranshu Sahu and Harikrishnan Nair)
