Metair earnings recover after difficult patch – Business Day

Vehicle parts maker Metair reported a better set of results on Thursday.

Metair’s automotive components vertical division showed a steady recovery after disruptions linked to new vehicle launches a couple years ago.

Thus, headline earnings per share rose 23% to R2.81 in the year to December, which was in the upper end of its guidance.

Group revenue was up 6.3% to R9.5bn, as the automotive component vertical regained stability, helping to push net profit to R587.57m from R468.05m.

Group margin expanded to 8.9% from 8.2%, supported by the margin recovery in the automotive component businesses.

The automotive components vertical segment sells product solutions ranging from lighting, ride comfort and heat exchange to vehicle electrical distribution and plastic part solutions.

The group also has an energy-storage business, which sells batteries to the after-market and industrial clients.

The battery business enjoyed a particularly strong performance in Romania and Turkey, partially offset by the weaker Turkish lira, the company said in a statement.

Metair exports products produced in SA, Turkey and Romania to original equipment manufacturers, making it sensitive to currency fluctuations.

By Andries Mahlangu, 15 March 2018