AD PLASTIK
War, chip shortage nearly wipe out all Q1 net profit for auto supplier / “Demanding period ahead”
 The shop floor at the headquarters plant in Solin, Croatia (Photo: AD Plastik) |
Leading Croatian car industry supplier AD Plastik (Solin; www.adplastik.hr/en) says net profit last quarter fell almost 98% to HRK 0.6 mn (EUR 80,000) from the year-earlier period due to effects from the Ukraine war and problems with securing semiconductors.
The company’s website says the processor has Russian plants in Samara and Kaluga, and the automotive sector there has been hard hit by the war. “Car manufacturers in that market have stopped their production activities and, although our factories are ready to resume production, at the moment it is impossible to accurately predict when production in Russia will restart,” said Marinko Došen, president of the management board at AD Plastik.
“At the same time our European factories have been working according to plans even though, due to the lack of semiconductors, production capacities of some customers are still somewhat reduced.”
European car sales took a beating in the first quarter, and growth this year is expected to be moderate at best (see Plasteurope.com of 10.05.2022).
Compared to the first three months of 2021, operating revenue in the first quarter slumped 23% to HRK 251.8 mn, the company said, noting that EBITDA was off nearly 53% to HRK 24.7 mn.
The company’s website says the processor has Russian plants in Samara and Kaluga, and the automotive sector there has been hard hit by the war. “Car manufacturers in that market have stopped their production activities and, although our factories are ready to resume production, at the moment it is impossible to accurately predict when production in Russia will restart,” said Marinko Došen, president of the management board at AD Plastik.
“At the same time our European factories have been working according to plans even though, due to the lack of semiconductors, production capacities of some customers are still somewhat reduced.”
European car sales took a beating in the first quarter, and growth this year is expected to be moderate at best (see Plasteurope.com of 10.05.2022).
Compared to the first three months of 2021, operating revenue in the first quarter slumped 23% to HRK 251.8 mn, the company said, noting that EBITDA was off nearly 53% to HRK 24.7 mn.
“Evolving situation” said to require resilience
“Our primary task in the upcoming period is to preserve financial stability as well as business sustainability and reduce negative impacts,” Došen said. “We are focused on the realisation of existing projects and expanding the portfolio of development and production projects in order to strengthen our position as a development supplier in the European market.
“We have been intensively monitoring the evolving situation and are ready for various scenarios, depending on its further development and circumstances. We are aware that there is a very demanding period ahead, but we are also sure that we will once again show and confirm our resilience and proceed to conduct stable business in the long run.”
Along with its two Russian facilities, the company has three plants in its home country of Croatia, and one each in Hungary, Romania, and Serbia. The processor says it employs 3,000 and supplies components to a range of major carmakers.
“We have been intensively monitoring the evolving situation and are ready for various scenarios, depending on its further development and circumstances. We are aware that there is a very demanding period ahead, but we are also sure that we will once again show and confirm our resilience and proceed to conduct stable business in the long run.”
Along with its two Russian facilities, the company has three plants in its home country of Croatia, and one each in Hungary, Romania, and Serbia. The processor says it employs 3,000 and supplies components to a range of major carmakers.
12.05.2022 Plasteurope.com [250229-0]
Published on 12.05.2022