Granges anticipates its 2019 troubles will persist into Q1 2020 with a low single-digit sales volume decline compared to 2019. 

 

Additionally, research firm IHS estimates a 5pc decline in global light vehicle production, which, in turn, will affect Granges’ sales.

 

The company—which produces rolled aluminum it sells to automobile and HVAC companies—acquired Aluminum Konin last quarter and will add 220,000-640,000mt to its existing production capacity in 2020—a year it intends to focus on innovation, efficiency and improvements, and product development for electric vehicles.

 

Granges’ sales volumes to the automotive sector decreased to 170,600mt in 2019 from a year earlier, while HVAC and other segments fell to 176,700mt. During Q4 2019, Granges’ sales volume fell by 10.9pc to 77,900mt compared to the same quarter in 2018. 

 

The company’s auto sales declined by 25pc in Europe and 19pc in the Americas. Sales volumes in the company’s HVAC and other business segments in the Americas declined by 11pc because of destocking.

 

Granges’ operating margin in 2019 declined by 0.3pc to 7pc from 7.3pc in 2018. In Q4 2019 its operating margin declined by 1.9pc to 4.3pc compared with 6.2pc in Q4 2018. Its 2019 profit totaled $600mn, declining by 12.8pc from $688mn in 2018. The firm’s Q4 profit was $47mn, down by 68.1pc from $149mn in Q4 2018.

Leave a Reply

Your email address will not be published.