Automotive headwinds are buffeting magnetics technology company Kendrion (Headquarters of Kendrion Commercial Vehicles in Markdorf, Germany, which is part of its Automotive Division pictured above) which reports an 8% decline in revenues for the first half of 2019. Kendrion, whose company motto is “we magnetize the world”, attributes the decline to weakness in the automotive business particularly affecting its units that serve manufacturers of passenger cars. The company also does a big business in components for commercial vehicles.
For the first half of the year, revenues fell to 109 million from 119 million EUR in the first half of 2018. Profits took a hit, falling from 15.8 million to 8.3 million EUR. Meanwhile, the company plans to continue its growth plans in making permanent magnet brakes for robotics and two other areas of focus.
“We have had a difficult first half of 2019, as the global automotive market continues to be challenging,” said Joep van Beurden, CEO, in Amsterdam where the company is headquartered. It is publicly listed on the Amsterdam exchange but much of its operations, and its roots, are in Germany.
Global car production declined by 6.7% compared with the first half of 2018, with weakness in all major markets, and especially China, said van Beurden. “Industrial markets weakened as well and purchasing managers’ indexes around Europe are now pointing towards a contraction in industrial activity. This has had a significant impact on our revenue, which declined by 9% compared with the first half of 2018. Automotive revenue decreased by 12% and Industrial by 4%.”
Expect more of the same from the car business for the second half of the year, warned van Beurden, noting that cost-containment and streamlining of operations is underway. “We firmly believe in our longer-term prospects and continue to invest in our three focus areas: automotive and specifically in products relevant to the development of autonomous, connected, electric, shared vehicles, the so called “ACES”, permanent magnet brakes for robotics and in China. We see opportunities for healthy growth in all areas.”
Kendrion develops and manufactures electromagnetic systems and components for both industrial and automotive applications. Its automotive business serves both the passenger car and commercial vehicle markets. Its automotive product lines are extensive. They include many electromagnetic solenoids and actuators as well as mechatronic systems and their integration in customer-specific applications used primarily in the area of fuel systems, engine management, active damping, sound design and assistance systems. Other products include electromagnetic brakes and clutches, permanent magnet brakes, electrodynamic actuators, holding solenoids, stroke solenoids for parking locks, rotary angle and linear sensors. The company employs about 2,400 people worldwide.
For more info, see www.kendrion.com.