(AOF) – Delfingen, an automotive equipment manufacturer specializing in solutions for protecting on-board networks and tubes for fluid transfer, posted turnover up 4.5% to 107.8 million euros in the fourth quarter of 2023. The turnover for the year 2023 amounts to 456.7 million euros, an increase of 9.5%. The group is lowering its current operating margin target for 2023 to around 6%, compared to 6.5% initially set, due to lower activity at the end of the year. Current operating profit would nevertheless be up 30% year-on-year.
The group anticipates, continuing the first half, the generation of positive free cash flow, and a reduction in its working capital requirement over the entire financial year.
“Strengthened by its strategic reference positions with the main global cable manufacturers, and despite the slowdown observed at the end of the year”, the equipment manufacturer underlines that it has “continued to outperform the global automotive market in 2023” (+1 point) , driven by the Asia (+8.3 points) and Americas (+2.6 points) zones “while continuing to rationalize the product portfolio in Europe”.
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Negotiations with manufacturers
On average, equipment manufacturers represent between 60 to 85% of the manufacturing cost price of a vehicle. According to the Federation of Vehicle Equipment Industries (Fiev) negotiations are very tense with manufacturers regarding the passing on of the increase in costs. The price increases concern electronic components, raw materials, such as steel, nickel, lithium or palladium, energy and transport. The equipment manufacturers mainly negotiate with Stellantis and Renault to set up indices to pass on the increases. They are also betting on innovation, differentiation, moving upmarket and internationalization.