Autoneum (AUTN) H2 2019 earnings summary

Executive summary

• Organic revenue growth of 2.5% outpaced a 5.6% global light-vehicle production decline; operating profitability was sharply lower, mainly due to North American losses.

• 2019 net result was CHF -77.7 million after CHF 68.0 million of fixed-asset impairment; free cash flow improved but remained negative at CHF -9.9 million.

Financial highlights

• Revenue rose to CHF 2,297.4 million from CHF 2,281.5 million; organic growth was 2.5%.

• EBITDA was CHF 164.0 million, 7.1% of revenue, including IFRS 16 effects; excluding IFRS 16, EBITDA was CHF 126.0 million.

• EBIT before CHF 68.0 million of impairment effects was CHF 35.0 million, with a 1.5% margin; reported EBIT was CHF -32.9 million, with a -1.4% margin.

• Net result was CHF -77.7 million versus CHF 74.7 million in 2018; basic EPS was CHF -20.82 versus CHF 11.83.

• Free cash flow improved to CHF -9.9 million from CHF -40.7 million, despite lower earnings.

Outlook and guidance

• 2020 global automobile production was forecast to fall 1.9% to 87.2 million light vehicles; revenue growth was expected at market level.

• Guidance targeted significantly higher profitability and a slightly positive net result, supported by the North America turnaround and related measures.

• Free cash flow was expected in the mid-double-digit million range, supporting lower net debt; profitability recovery was expected in 2021, with a return to a sound level in 2022.

• 2020 priorities included reducing North American losses, raising manufacturing performance, controlling costs, lowering inventory, and developing dedicated BEV components.