Granges anticipates lower profitability this quarter because the automotive industry has been significantly impaired by the COVID-19 crisis.
The company’s total sales volume of rolled aluminium products, most of which are sold to the automotive industry, dropped by 1.1pc in Q1 2020 to 89,900mt from 90,800mt in Q1 2019. Its rolled aluminum product sales to Asia’s automotive industry declined by 16.6pc to 16,700mt in Q1 2020 compared to 20,000mt in Q1 2019.
Granges’ sales volume in the European automotive industry decreased by 16.9pc to 13,700mt in Q1 2020 from 16,500mt in Q1 2019. Sales in the Americas fell by 7.8pc to 7,800mt in Q1 2020 from 8,500mt in Q1 2019. Thee company attributed its flagging automotive sales across the three continents to the pandemic hampering and decelerating light vehicle production.
Sales volumes of rolled aluminium products for HVAC and other niche market in Americas increased by12.7pc to 51,700mt in the first quarter of the year from 45,900mt in Q1 2019. This increase has been attributed to production ramp ups at Granges’ Huntingdon and Newport facilities.
The firm’s net sales dropped by 1.5pc to $314mn in Q1 2020 from $319mn during the same period the year prior, while its adjusted operating profit significantly declined by 23.6pc to $22mn in the first quarter of the year compared to $28mn in Q1 2019.