|
Dowlais Group PLC on Tuesday said it expects to achieve the top end of its full-year guidance range for its operating margin and revenue, despite ‘mixed’ industry conditions. The London-based automotive engineering firm said in a trading statement that its adjusted revenue stood at £3.7 billion for the nine months ended September 30. This represented a year-on-year reported adjusted revenue decline of 1.2%, which Dowlais attributed to £84 million in foreign exchange headwinds. In the Automotive division, adjusted revenue increased by 1.6% year-on-year to approximately £3.0 billion, with recovery from ePowertrain and growth in China partially offset by a decline in Driveline. The impact of tariffs on operating profit in the period was £22 million, and was largely on the Automotive segment. Adjusted operating margin was 7.2% in Automotive, an increase of 160 basis points year-on-year, driven by commercial recoveries, performance initiatives and restructuring, which helped to offset the effect of tariffs. Powder Metallurgy’s adjusted revenue in the period declined by 1.1% year-on-year due to lower volumes. Looking ahead, Dowlais said it did not anticipate full-year performance to be ‘materially affected’ by tariffs, saying it expected ‘to fully recover these additional costs from customers through commercial actions and other performance initiatives.’ Dowlais added that there may be a timing lag for recovery, potentially extending into 2026. The company said it expects full-year performance to be near the top end of its guidance range for 2025 of flat to a mid-single digit adjusted revenue decline and an adjusted operating margin of between 6.5% and 7.0% in constant currency. Chief Executive Liam Butterworth said: ‘We delivered a quarter of solid execution in a volatile environment, with performance supported by our diversified portfolio, strong cost discipline, and continued execution of our global restructuring programme. We also remain confident in our ability to fully recover the cost of current tariffs through commercial initiatives over time. ‘Looking ahead, while industry conditions remain mixed, we now expect full-year performance to be towards the top end of our guidance range. At the same time, our proposed combination with American Axle continues to progress well, with only two regulatory approvals outstanding, and represents a transformational opportunity to accelerate our strategy and create a more resilient and competitive global business with significant scale.’ Shares in Dowlais declined 0.2% to 82.80 pence on Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
