The automotive supplier Mahle says that despite difficult market conditions the company completed its 2024 financial year with a positive consolidated net result. The operating profit (earnings before interest and tax — EBIT) rose from 304 million euros to 423 million euros compared with the previous year, corresponding to an EBIT margin of 3.6%.
However, after eliminating ‘exchange rate and deconsolidation effects’ there was ‘an organic fall’ of 5.6% in sales to 11.7 billion euros. Mahle said the main reasons for this fall were weak markets in Europe and North America, as well as ‘sluggish demand’ for electric vehicles outside China.
Arnd Franz, Mahle’s chairman and CEO, said: “It is only thanks to hard work that we were able to assert our position in terms of business operations. Our Mahle 2030+ strategy is gaining traction and allows us to be profitable despite difficult market conditions. Our transformation continues to gather pace, as we have worked consistently to improve our earnings power in many areas.
“In addition, the company streamlined its portfolio in order to heighten its focus on the areas of electrification, thermal management, and efficient, sustainable internal combustion engines. Through these efforts, MAHLE was able to significantly reduce its debt by 186 million euros; and thanks to successful refinancing, the liquidity of the group is ensured.”
Regarding research and development, in the 2024 financial year Mahle invested 630 million euros in R&D, with the 5.4% investment ratio referred to sales slightly higher than in 2023. For 2024, Mahle reported 536 new inventions and 427 new patent applications, a fact that the company says highlights a determination to further reinforce its position as a driver of technological progress in the industry.
Mahle also said it remains on track with the implementation of its Mahle 2030+ strategy, for which a key growth market is China. Here, the company already cooperates with all international vehicle and engine manufacturers, as well as key Chinese OEMs. Mahle sees growth prospects for its electrification and thermal management offerings, especially in the field of new energy vehicles (NEVs).