A 5% dollar drop and stock shock? What Trump firing Powell could trigger
Investing.com -- Shares of Opmobility climbed 6% today as the company reported first-quarter consolidated sales that exceeded market expectations.
The sales figure of €2,694 million was approximately 3% above the consensus, indicating a like-for-like (LFL) year-on-year (YoY) growth of around 2.2%. Economic revenue for the quarter reached €2,981 million, marking a 3.3% LFL increase, with joint venture revenues contributing €287 million, up by 14.8%.
The company’s performance was particularly notable in several regions and divisions. Opmobility outpaced global production by approximately 1.8 percentage points, with significant regional variations. In China, the company faced a 12 percentage point decline, attributed to the rise of electrification among local OEMs.
Conversely, Asia excluding China saw a substantial outperformance of around 21 percentage points. North America’s performance dipped slightly by 2 percentage points, impacted by lower modules assembled in Mexico. Europe, however, experienced a robust increase of 15 percentage points, supported by the ramp-up of Modules at Slovakia and Czech Republic sites for Skoda and Volkswagen (ETR:VOWG_p).
By division, Exteriors & Lighting saw a marginal decline of 0.8% LFL YoY, while Modules soared with a 12.1% increase, and Powertrain fell by 2.6%. The company highlighted key product launches during the quarter, such as bumpers for the BYD (SZ:002594) Seal. On the topic of tariffs, Opmobility generated €1.8 billion in revenue in the US, with over 80% produced locally. The company’s focus remains on component supply, with directed purchases representing roughly two-thirds and free purchases about one-third.
Despite the uncertain geopolitical context, Opmobility has maintained its outlook for the fiscal year, aiming to post 2025 financial aggregates (operating margin, net result Group share, and free cash flow) above those of 2024. The company is actively implementing cost reduction measures, including a decrease in structural costs and indirect production expenses, as well as a slowdown in investments, to cope with limited visibility over production volumes for the year.
"Slightly positive on maintained FY guidance and Q1 revenue beat. However, we expect investors to remain cautious on potential tariffs impact," UBS analysts wrote in a note.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.