OPmobility's revenue rises amid reorganization, weak auto market

By Mathias de Rozario and ‌Etienne Breban

Oct ​21 (Reuters) - OPmobility ​reported higher third-quarter revenue on Wednesday, even as the French car parts supplier restructures its business amid broader auto industry weakness.

The ‌company's consolidated revenue rose 2.8% on a like-for-like basis to €2.44 ⁠billion ($2.74 billion), driven by growth across its business areas.

Its exterior and lighting solutions unit, which ‌makes up 44% of total revenue ‌and holds leading market positions in bumpers and tailgates, continued to lead the performance. The global picture, however, remained uneven.

OPmobility's like-for-like sales underperformed Mobility ​Global's automotive production forecast in North America and Asia, falling 5.9% and 11.6%, respectively.

“China, in particular, remains pretty challenging,” CEO Félicie Burelle said ⁠in a post-earnings call. Domestic vehicle sales in China fell 24% in the quarter, making it a critical ​and tense market for the company, she added.

Meanwhile, European sales growth of 8.6% outperformed the broader market.

"It was mainly driven ​by our activity in Eastern Europe," Burelle ‌said. "In Western Europe, however, we still do see a weaker demand, with some additional shutdowns that have been communicated over ⁠the last weeks."

Earlier in October, OPmobility lowered its 2026 targets and said it would cut about 770 jobs in Europe, citing lower automotive production forecasts, changes in customer ⁠activity and delays in the hydrogen mobility market.

Burelle said raw material inflation, especially in resins ​and components like printed circuit boards and memory chips, has squeezed margins.

Some pass-through mechanisms exist for these costs, but with a lag of three to six months, while negotiations ‌with customers are becoming harder because automakers are also under pressure, she added.

"The decision to ease restrictions on combustion ‌engine vehicles does not change much for OPmobility. We are sticking to a strategy ⁠of diversifying our propulsion systems," ‌finance chief Olivier Dabi ​said during a press call.

($1 = 0.8903 euros)

(Reporting by Mathias de Rozario and Etienne Breban in Gdansk; Editing by Diti Pujara and ‌Milla Nissi-Prussak)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Barclays cuts Cirrus Logic price target to $95 from $130, cuts to Underweight
• Meta shares climb ahead of quarterly earnings report
• BofA flags five chemical stocks amid tough Q3 earnings outlook