Antolin - comment

In line with the downturn in the auto parts industry, the Spanish auto parts group reported Q3 results that were reflective of the industry. Revenues declined by 5% on a like-for-like basis and 10% in a reported basis to EUR 1.02 billion. While margins improved by 55 bps to 8.4% due to cost cuts, EBITDA declined by 4 million to EUR 85 million. Leverage went up to 3.2x with cash burn at EUR 14 million. The results were below our already conservative estimates of revenues of EUR 1.15 billion and EBITDA of EUR 89 million for the quarter. We had also expected free cash flow of EUR 142 million from working capital inflow.  Liquidity weakened in Q3 to EUR 428 million but expected to improve in Q4 from proceeds of non-core asset sales. The company also reduced its guidance for FY 2024. The only positive was the growth in Technology Solutions by 11% to EUR 98 million which we feel is not enough to compensate for declines in the Product Systems segment. 

The winter has just started for the company…