Impacts on the automobile business of Covid-19 and the transition to e-mobility are being seen at the order desks of German machinery maker Aumann – and likely others in the worldwide coil winding and electrical manufacturing industry. Considered a bellwether for the health of the industry, the company reports a significant drop in its overall revenues amidst a continuing increase in its e-mobility sector.
For the first quarter of this year, Aumann reported revenue of €48.1 million. Sales in its e-mobility segment increased again, and was up 11.8% on the same quarter of the previous year at €29.8 million. By contrast, sales in its traditional sectors fell a whopping 55.1%.
Uncertainty in connection with the global COVID-19 pandemic affected the automotive industry in the past quarter and, for the first time, directly affected its business, said the company. Order intake was down 8.2% year-on-year at €38.6 million in the first quarter. Developments in the two segments were mixed.
While order intake in the E-mobility segment had a modest start to the year in the first three months at €13.9 million due to delays in contracts for new projects, the classic segment stabilized for the second quarter in a row at €24.5 million. However, the order backlog in e-mobility is still higher than in the classic segment.
In addition to the weak economic environment and the existing challenges in the automotive industry, the global COVID-19 pandemic is increasingly impacting the operations of our customers and thus Aumann itself, the company reported.
In June, Aumann decided to cease operations by year-end at its smallest plant in Hennigsdorf which has annual revenue of around €11 million and 65 employees. Its leaves the company with six plants worldwide and about 1,300 employees. The action is part of a set of measures to adjust its cost structure to weaker demand in the automotive industry, said the company.
For info, visit: www.aumann.com