Amotiv shares smashed after weaker outlook
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More news: Shares in Amotiv have dived 17% to $7.31 after the automotive equipment company warned of weaker full-year revenue and earnings on the back of muted demand in its major segments.
It cited muted demand in the Australian lighting, power and electrical segment, weaker new vehicle sales in the 4-wheel drive segment and weak New Zealand new vehicle sales as reasons for the decline but said US tariffs are not likely to have a material impact on the group in FY25.
Amotiv flags flat full-year result on tepid demand
The news: Automotive equipment company Amotiv has flagged nearly flat revenue and earnings for the full year on the back of muted demand in its major segments.
The numbers: The company now expects marginal revenue growth and a marginal decline in underlying earnings for FY25 compared to the previous year. It reported a 36% slide in first-half profit in February along with a 2.3% increase in revenue.
Amotiv also said it currently gets 8% of revenue from the US and it does not expect US tariffs to have a material impact on the group in FY25
The context: Amotiv attributed the weaker result to reseller demand in Australian Lighting, Power & Electrical segment remaining muted, with no rebound evident to date, although the US market remains strong. The 4-Wheel Drive segment was impacted by weaker new vehicle sales in Australia and timing of South Africa production mix, while New Zealand new vehicle sales remain weak and are expected to stay challenged for longer. The trends across RV/caravan/truck segment remains soft, it said.
The company’s US sales are primarily Vision X products manufactured in South Korea, and also include some 4WD product manufactured in Thailand. The group is assessing a range of tactical and strategic actions to manage the risks and realise opportunities from the US tariff changes including resourcing of finished goods, re-pricing and use of alternative manufacturing and supply locations.
The source: ASX
