OPmobility Revenue Drops 2.4% Amid European Weakness and Dollar Impact
First-Half 2024 Financial Performance Overview
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.
Revenue Figures and Currency Effects
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.
Excluding currency effects, revenue rose 0.2%, with the group citing a €136 million impact from currency fluctuations, mainly linked to the U.S. dollar.
European Market Performance
Revenue in Europe, OPmobility's biggest market, fell 2.9%, underperforming the region's automotive production, according to Mobility Global forecasts published earlier this month.
CEO Commentary and Market Challenges
"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.
Expansion Strategies in Other Regions
To offset Europe's weakness, OPmobility is seeking to expand in North America and Asia, where revenue outperformed local automotive production.
The company finalised the expansion of its Chinese joint venture YFPO into module assembly and decorative lighting during the second quarter.
Outlook and External Factors
OPmobility also confirmed its 2026 outlook while monitoring the situation in the Middle East, which has so far only had a limited impact on volumes.
($1 = 0.8767 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
