📋 Tender Overview
Vitesco Technologies a leading international developer and manufacturer of advanced drive technologies for sustainable mobility published its results for the second quarter and for the first half of 2022 today. The companys performance exceeded expectations in the second quarter despite ongoing shortages of semiconductors production outages in China due to lockdowns and the impact of worldwide increases in inflation. New orders at Vitesco Technologies also remained robust. In the quarter under review orders amounting to 3.7 billion were received including 3.0 billion in the electrification market. The major order of 1.7 billion announced in May which is for a battery management system that Vitesco Technologies is supplying to a global customer was included in the volume of new orders for the second quarter of 2022.A major highlight was our success in signing a cooperation agreement with the Renault Group. This partnership will allow us to continue stepping up our growth in the field of electrification and work with the Renault Group to develop a power electronics solution that is unique in the market.Andreas Wolf CEO of Vitesco TechnologiesUnder this partnership the Renault Group is also entering into a multi-year agreement with Vitesco Technologies concerning power electronics for hybrid Renault vehicles. From 2025 onward Vitesco Technologies will also supply the Renault Group with a high-voltage box for electric vehicles which houses both a DCDC converter and a charger.Another solid quarter in difficult market conditionsThere were again many challenges to overcome in the second quarter. We did so by maintaining a disciplined approach to costs and focusing on operational efficiency. This enabled us to cope well with the lockdowns in China due to COVID-19 for example. Reaching successful agreement with our customers on the first price adjustments also had a positive impact on our sales and earnings.Werner Volz CFO of Vitesco TechnologiesConsolidated sales amounted to 2.17 billion in the second quarter Q2 2021 2.09 billion a rise of almost 3.3 percent. The sales from electrification products included in this total came to 235 million. Adjusted for changes to the scope of consolidation and exchange-rate effects sales fell by 1.4 percent. Adjusted EBIT was down compared with the prior-year period at 32.9 million Q2 2021 64.7 million which equates to an adjusted EBIT margin of 1.5 percent Q2 2021 3.1 percent. Net income increased to 36.7 million Q2 2021 0.2 million while earnings per share EPS rose to 0.92. Sales for the first half of 2022 went up by 0.6 percent to 4.42 billion H1 2021 4.40 billion. Adjusted EBIT edged down by 4.5 percent to 78.1 million H1 2021 81.8 million giving an adjusted EBIT margin of 1.8 percent H1 2021 1.9 percent. However net income improved markedly from a net loss of 31.5 million in the first half of 2021 to net income of 25.4 million in the first six months of 2022. Earnings per share stood at 0.63 for the first half of 2022. Free cash flow amounted to 1.6 million Q2 2021 65.7 million. The situation remained difficult as regards the global supply of semiconductors but despite this we still achieved a positive free cash flow primarily as a result of non-recurring items. Furthermore the figure for the prior-year period had been boosted by the effects of the spin-off. As of June 30 2022 Vitesco Technologies had a sound balance sheet with an equity ratio of 40.4 percent Juni 30 2021 32.0 percent. Significant inflation effects in the form of increased energy and transportation costs due in no small part to Russias war of aggression in Ukraine weighed on the companys overall earnings. Lockdowns in China because of COVID-19 were also a challenge for the industry and therefore for Vitesco Technologies especially at the start of the quarter under review.The growth of our business in North America and the positive effects of exchange rates compensated for the lockdown-related slowdown in production that occurred in China in the second quarter.Andreas Wolf CEO of Vitesco TechnologiesPerformance of the business unitsThe Electrification Technology business unit achieved sales of 147.0 million in the second quarter of 2022 Q2 2021 147.2 million. Adjusted EBIT declined slightly to -69.7 million Q2 2021 -66.1 million equating to an adjusted EBIT margin of -47.4 percent Q2 2021 -44.9 percent. The earnings of the Electrification Technology business unit continued to be impacted by the additional expenses incurred as a result of the situation in the semiconductor market and the increases in material prices. Demand remained high for high-voltage electric drives and power electronics which was reflected particularly clearly by the large volume of new orders. The Electrification Technology business unit registered orders totaling 2.3 billion in the second quarter.Sales increased in the Electronic Controls business unit in the second quarter of 2022 to 922.2 million Q2 2021 888.9 million. Adjusted EBIT amounted to 19.7 million Q2 2021 50.7 million equating to an adjusted EBIT margin of 2.1 percent Q2 2021 5.8 percent. This business unit also incurred additional expenses due to the situation in the semiconductor market and increases in material prices and these expenses weighed on earnings. Positive effects were mainly felt as a result of strong growth in the core technologies especially in Germany and North America. In the Sensing Actuation business unit sales for the second quarter of 2022 amounted to 844.4 million Q2 2021 807.9 million. Adjusted EBIT amounted to 84.1 million Q2 2021 71.2 million equating to an adjusted EBIT margin of 10.0 percent Q2 2021 8.9 percent. This business unit also felt the impact of the semiconductor shortage primarily as a result of higher material prices.
