AKWEL Faces Expected Charge Impacting Financial Year Profitability
AKWEL's Financial Outlook for Fiscal 2025
AKWEL, an esteemed supplier in the automotive and truck industries, is preparing for a probable non-recurring charge that may significantly affect its earnings for the upcoming financial year. This scenario emanates from a recent customer agreement concerning quality issues related to SCR tanks that AKWEL produces.
Understanding the Customer Agreement
The customer agreement aims to resolve outstanding litigation regarding the quality of SCR tanks. This resolution is critical for AKWEL, as it delineates the nature and consequences of the challenges they’ve been facing. The agreement signifies a step toward stability and a commitment to improving product quality, but it comes with financial implications that cannot be overlooked.
Estimated Financial Impact
As it stands, the impact on AKWEL's fiscal earnings could reach approximately -19 million euros. This figure follows adjustments due to provisions previously set aside for potential claims. However, there remains a glimmer of hope as this one-off charge may be mitigated by insurance coverage that the Group has secured.
Future Communication Plans
AKWEL is committed to transparency and will provide updates as they validate the amounts covered by their insurance partners. This information is crucial for stakeholders who are keenly observing the company's financial health and future outlook.
About AKWEL
AKWEL is an independent, family-owned business that specializes in fluid management systems, mechanisms, and structural components for electric vehicles. With a robust foundation in industrial and technological expertise, the group excels in material application, transformation, and mechatronics integration.
Global Presence and Workforce
With operations in 20 countries across five continents, AKWEL prides itself on employing 8,600 dedicated team members worldwide. This international footprint allows the company to innovate and contribute to the global automotive industry significantly.
Key Financial Event
This announcement aligns with AKWEL's routine financial disclosures, as the company prepares for its next major communication regarding first-half 2025 sales, which is set for July 24, 2025. Investors and analysts alike will eagerly await these results to better understand the company's performance and strategic direction.
Contact Information
For further inquiries, stakeholders can reach out to:
AKWEL
Benoit Coutier - Finance & Legal VP
Tel: +33 4 50 56 98 68
Press Relations
Jean-Marc Atlan - Email: jean-marc.atlan@ekno.fr
Tel: +33 6 07 37 20 44
Investor Relations
Mathieu Calleux - Email: akwel@actus.fr
Tel: +33 1 53 65 68 68
Frequently Asked Questions
What is the estimated financial impact on AKWEL?
AKWEL anticipates a non-recurring charge of around -19 million euros for fiscal 2025 due to quality issues with SCR tanks.
Is this charge expected to be mitigated?
Yes, the charge may be partially reduced by insurance coverage that the group has in place.
When will AKWEL provide further updates?
AKWEL plans to communicate additional details after validating insurance coverage amounts and during their next financial reporting on July 24, 2025.
What type of products does AKWEL specialize in?
AKWEL specializes in fluid management systems, mechanisms, and structural parts for electric vehicles, catering to the automotive and truck industries.
Where is AKWEL located?
AKWEL operates globally, with a presence in 20 countries across five continents, employing 8,600 people worldwide.
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