OPmobility revenue falls, but outpaces global vehicle production
First-Half 2024 Financial Performance and Market Analysis
By Mathias de Rozario
July 22 (Reuters) - French car parts supplier OPmobility reported a 2.4% fall in its first-half revenue on Wednesday, as it continued to be affected by weakness in the automotive industry and a weaker U.S. dollar.
Stock Market Reaction
Shares in OPmobility were up 2.3% at 09:45 GMT in Paris, after rising as much as 4.6%.
Revenue and Currency Impact
The group's consolidated revenue was €5.20 billion ($5.93 billion) in the first six months of the year compared with €5.33 billion a year ago.
Currency Fluctuations
Excluding currency effects, revenue rose 0.2%. The group said currency fluctuations, mainly linked to the U.S. dollar, reduced revenue by 136 million euros.
Comparison with Global Automotive Production
Despite the decline in reported sales, OPmobility outperformed global automotive production, according to Mobility Global forecasts published earlier this month.
Analyst Commentary
The results confirmed its ability to outperform a declining global car production market thanks to North America, TP ICAP Midcap analysts said.
Operating Margin Stability
Midcap said the operating margin was stable at 4.8% despite inflation of several key inputs linked to the conflict in the Middle East.
Regional Performance
Europe
Revenue in Europe, OPmobility's biggest market, underperformed the region's automotive production, falling 2.9%.
CEO Commentary on Europe
"We knew we’d have fewer launches this year compared with last year. It turns out that, on top of that, some have been postponed, but would normally be delayed until the second half of the year," CEO Félicie Burelle said in a call with journalists.
She added that while the region has not yet returned to its pre-pandemic level, its manufacturers are suffering from fierce competition from China.
North America and Asia
To offset Europe's weakness, OPmobility is expanding in North America and Asia, where revenue outperformed local automotive production.
Chinese Joint Venture Expansion
The company finalised the expansion of its Chinese joint venture YFPO into module assembly and decorative lighting during the second quarter.
Outlook
OPmobility also confirmed its 2026 outlook while monitoring the situation in the Middle East, which had so far had only a limited impact on volumes.
($1 = 0.8767 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
