Mahle reported continued losses, despite a decline in revenue
Mahle Reports Revenue Decline Amidst US Tariffs
Automotive supplier Mahle has reported a significant drop in revenue for the previous year, with earnings falling from €12.8 billion to around €11.7 billion. The company's cautious outlook for the year is largely due to the further deterioration of the situation caused by the US tariffs.
CEO Arnd Franz attributed the revenue decline to weak markets in Europe and North America, reduced sales to key customers, and lower demand for electric vehicles outside of China. Despite these challenges, Mahle managed to generate a net income of €22 million last year, a slight decrease from €26 million in the previous year.
Franz stated that the company implemented "an extensive package of measures for process and efficiency improvements" last year. These measures included optimizing sales and administrative structures, adjusting the production network, selling unnecessary real estate, and adjusting the number of employees to match the reduced revenue. As a result, the company's workforce decreased by 4,665 employees to 67,708 at the end of the year.
The operating result (EBIT) saw a significant increase, rising from €304 million to €423 million. However, revenue in the first three months of the year was slightly below expectations, according to Franz.
The name of the CEO who experienced this significant revenue decline but still generated a profit of €22 million last year is Rudolf Paulik. He was succeeded by Bernd Eckl in April 2017. Mahle remains cautious and cost-conscious this year due to intensified framework conditions, such as the recently imposed US tariffs.
Upon request, Franz did not provide specific figures for revenue and earnings expectations for the current year. However, he reiterated the company's commitment to continuous improvement and cost optimisation in order to navigate the challenging market conditions.
