Due to the impact of the war in Ukraine on the automotive industry and vehicle production as well as of rising inflation, Autoneum is adjusting its corporate outlook for the 2022 financial year. The market recovery will be delayed by current developments.
On the basis of the ongoing collaborative discussions with customers to participate in the sharing of the sharply increased energy and material costs, Autoneum Management Ltd. Winterthur/Switzerland, anticipates an improvement in the EBIT margin to 2.0 to 3.0% (previously: 4.0 to 5.0%) for the full year 2022. Free cash flow for 2022 is expected to be in the mid to high double-digit million range.
The company is very well positioned for the transformation of the automotive industry towards e-mobility and sustainability. Its product portfolio is suitable for all drive types, whether internal combustion, hybrid or pure electric vehicles. The medium-term forecasts that Autoneum published in November 2021 remain unchanged positive. The timing of the market recovery will be delayed by current events and will also depend on further geopolitical developments.
Since the outbreak of war in Ukraine, new bottlenecks in global supply and logistics chains have been impacting vehicle manufacturer production volumes and thus slowing the revenue and earnings development of the automotive supply industry, especially in Europe. In addition, renewed corona virus-related lockdowns in China are delaying growth in Asia. According to the revised market forecasts, global automobile production is expected to reach 80.4 million units in 2022, which represents an increase of 4.1% compared to 2021. Growth will thus be significantly lower than was still expected in mid-February.
For the first half of the year, Automeum expects an EBIT margin at break-even level.