Amotiv revenues fall 5% in tough first quarter
Key points
- Amotiv reported a 5% drop in like-for-like first-quarter revenue due to weak vehicle sales and flooding in Thailand.
- Persistent Middle East conflict, higher interest rates, and weaker consumer sentiment forced a revised financial perspective.
- The company is executing cost-reduction initiatives to counter elevated operating costs and supply chain disruptions.
Amotiv (ASX:AOV) reported a 5% decrease in like-for-like group revenue for the first quarter of FY27 due to weak vehicle sales and flood disruptions in Thailand.
The revenue decline contrasts with management's August expectations of modest revenue growth for the full fiscal year.
Higher operating costs were driven by inflationary pressures alongside one-off expenses from a US customer legal dispute and warehouse logistics.
Management expects challenging trading conditions to persist for the remainder of the fiscal year.
Following the announcement, the Amotiv share price was down at $5.40.
The company's Lighting, Power and Electrical Division recorded flat revenue, while revenue grew marginally in the Powertrain and Undercar division.
Amotiv continues to implement its Amotiv Unified initiatives to reduce operating costs and offset weak consumer sentiment.
