Dowlais Group PLC, a specialist engineering group focused on the Automotive sector, has released a trading update for the four-month period to 30 April 2024. The company's performance during this period has been broadly in line with expectations, with some segments outperforming the market while others faced challenges.
The Group achieved £1.7 billion of adjusted revenue in the period, representing a year-on-year decline of 1.9%. This decline was primarily attributed to weakness in the ePowertrain product group of the Automotive business, while segments like Powder Metallurgy, Driveline, and the China joint venture (JV) experienced growth ahead of the market. Despite translational foreign exchange headwinds of £90 million, the Group managed to achieve adjusted operating margins of 6.1%, up 30bps over the same period of the prior year.
In the Automotive segment, Driveline and the China JV operations saw growth ahead of the market, while the ePowertrain segment faced challenges due to increased volatility in BEV production volumes. The Powder Metallurgy segment had a strong start to the year, with adjusted revenue growth of 4.0%, outperforming the market.
Looking ahead, the Group anticipates revenue for 2024 to be slightly below the prior year at constant currency, with performance more weighted to the second half of the year. Despite some uncertainty, the Group remains confident in its ability to achieve operating margin expansion and grow free cash flow for the full year.
Liam Butterworth, CEO of Dowlais, commented on the performance, highlighting the resilience of Driveline and the strong performance of the JV in China and Powder Metallurgy. He also noted the challenges faced by the ePowertrain product group and the increase in adjusted operating margins.
The Group's interim results will be announced on 13 August 2024. For further information, enquiries can be directed to Teneo or the Investor Relations team at Dowlais Group PLC.