Dustin Group AB (STU:9DG) Q3 2025 Earnings Call Highlights: Navigating Challenges with ...
Gross Profit: SEK680 million, down from last year's SEK821 million.
Gross Margin: 13.4%, compared to last year's 15.0%.
Adjusted EBITA: SEK72 million, down from SEK130 million last year.
EBITA Margin: 1.4%, compared to last year's 2.4%.
Cash Flow from Operating Activities: SEK139 million, compared to last year's SEK454 million.
Leverage: Reduced to 4.3% from 6.0% last quarter.
SGA Expenses: Decreased by 14%, excluding Forex impact decreased by 11%.
Number of FTEs: Reduced by 150 or 7% compared to the same quarter last year.
Net Proceeds from Rights Issue: Approximately SEK1,240 million.
Inventory Levels: SEK1,098 million, above preferred levels.
Net Working Capital: SEK261 million, higher than last year's minus SEK205 million.
Warning! GuruFocus has detected 6 Warning Signs with STU:9DG.
Release Date: July 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Dustin Group AB (STU:9DG) achieved an organic sales growth of 2.9% in Q3, with stabilization observed in the SMB market.
The company successfully completed a rights issue, reducing leverage from 6.0% to 4.3%, which strengthens its financial position.
Cost efficiency measures have been effective, with SGA expenses decreasing by 14% and a reduction of 150 full-time employees, contributing to improved cost structure.
The strategic decision to exit the consumer market and focus on B2B is expected to enhance strategic focus and operational efficiency.
Standardization of services in the Nordics has shown clear margin support, with plans to extend this initiative to other regions for further benefits.
Gross profit decreased to SEK680 million from SEK821 million last year, primarily due to lower gross margins.
Adjusted EBITA fell to SEK72 million from SEK130 million, with a reduced EBITA margin of 1.4% compared to 2.4% last year.
The Netherlands market faced significant challenges, with price competition leading to a 20% year-over-year sales drop.
Cash flow from operating activities decreased significantly to SEK139 million from SEK454 million last year, impacted by increased inventory and delayed payments.
The Benelux region experienced a negative margin effect of 1.7%, driven by low-margin new contracts and price competition in the Netherlands.
Q: On the agreement and lower profitability in the Netherlands, are these entirely new contracts, or are they contracts being renewed with lower pricing points? A: Johan Karlsson, CEO: They are a combination of new and renewed contracts, primarily linked to frame agreements with mini tenders. The market's small volumes have led to high price competition.
Q: Do you see any gap from the refresh cycle on the LCP side, and when might this trend pick up? A: Johan Karlsson, CEO: We see signs of renewal, but market uncertainty blurs the picture. Some customers are delaying investments, but we expect increased activity from Microsoft and PC vendors to drive changes.
Q: Are there any temporary headwinds for margins due to Microsoft license agreements renewal? A: Johan Karlsson, CEO: While we lose on enterprise agreements, moving to cloud-based licenses offers better compensation. It's a trade-off, but overall, we expect it to be relatively neutral in the coming quarters.
Q: What is driving the 10% year-over-year increase in Swedish sales in Q3? A: Julia Lagerqvist, CFO: The main driver is activities within the defense sector on the public side, although there are positive signs in larger SMB segments as well.
Q: What is your turnaround plan for the Dutch market, and are you considering structural changes in Benelux? A: Johan Karlsson, CEO: We are building the SMB online business in the Netherlands and adding value through product life cycle services. In Belgium, we aim to grow market share through public tenders, improving the overall Benelux situation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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H1 2025 Results: Increase in Operating Margin & Net Cash Flow, Transformation Underway, Guidance Confirmed
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EBITDA ratio 1.8x 2.0x -20bps ORGANIZATIONAL TRANSFORMATION TO PROMOTE FURTHER ACCOUNTABILITY AND OPERATIONAL EXCELLENCE Design of a new division centric organization with clear lines of P&L responsibility to drive business performance. Launch of Simplify project to streamline organization and reduce indirect and structural costs; €110m cost base reduction target by 2028, backed by c.€150m restructuring costs over 2025–2028. CONFIRMED FULL-YEAR 2025 GUIDANCE Sales, operating margin, net cash flow, and leverage targets reiterated. Martin FISCHER, Chief Executive Officer of FORVIA, declared: "Our three key priorities — delivering performance, driving business transformation and invigorating our culture— shape our decisions and actions. The quality of our first-half results demonstrates the remarkable commitment of our teams and our strong focus on these priorities. This performance, together with the rising outcomes of self-help measures and the continued strict cost and cash control, enables us to confirm our full-year guidance in a challenging and volatile environment. It also further supports our primary objective of debt reduction. In the first half, we launched major initiatives that underpin our strategic shift. We are streamlining our operating model into a division-centric structure that enhances agility, accelerates decision-making and fosters accountability. Meanwhile, the SIMPLIFY project is building a leaner organization, generating additional cost savings. At the same time, we are transforming our business portfolio through a thorough strategic review of each business group and all product lines, while actively pursuing asset disposals. We will present our strategy and mid-term financial goals at our Capital Market Day on February 24, 2026.' H1 2025 FINANCIAL RESULTS (detailed analysis in Appendices) H1 2025 Group consolidated sales and operating income GROUP (in €m) H1 2024 Currency effect Organic growth H1 2025 Reported change Sales13,534 -205 +148 13,477 -57 -1.5% -0.4% Operating income 700 722 +3.1% As a % of sales 5.2% 5.4% +20bps In H1 2025, worldwide auto production rose by 3.1%, to 44.9 million LVs (S&P Mobility July estimate). Strong growth in Asia (+7.8%) more than offset volume decline in EMEA (-3.1%) and Americas (-2.4%). These regional variations represented an unfavorable geographic mix of close to 4 points for FORVIA. H1 2025 organic growth stood at +1.1% of last year's sales: Product sales organic growth at +2.9% were in line with market volume growth, driven by Electronics, Seating and Interiors. Tooling sales were exceptionally high in the first half of 2024. Excluding the unfavorable geographic mix, organic growth represented an outperformance of 2 points, driven by Europe and Asia excluding China. The currency effect represented a negative impact of €205 million on sales (-1.5%), that started to materialize in Q2. H1 2025 consolidated operating income of €722 million, up 20bps at 5.4% of sales. Margin development was supported by improvement in Seating, Electronics and Interiors. Tariffs had no material impact thanks to effective counter measures. The year-on-year increase in operating income to €722 million in H1 2025, mainly reflected: Increased flexibility in production costs and reduction in operating costs (hiring freeze, travel restrictions, marketing expenses cut…), The first benefits of the EU-FORWARD program which contributed to the 100bps margin expansion of EMEA to 4.1% of sales, and synergies with FORVIA HELLA, for a combined amount of €65 million, and despite: Volume effect and operational challenges in the North American Interiors and Lighting businesses, A negative currency impact of €20 million. H1 2025 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in €m H1 2025 H1 2024 Change Sales 13,477 13,534 Operating income before PPA 722 700 Purchase Price Allocation -92 -93Restructuring -248 -222 -26 Other non-recurring operating income and expense -16 -43 +27 Net financial interest -236 -250 +14 Other financial income and expense -72 79 -151 Income before tax of fully consolidated companies 59 171 -112 Income taxes -124 -59 -65 Share of net income of associates -154 -12 -142 Consolidated net income before minority interest -219 100 -319 Minority interest -50 -95 +45 Consolidated net income, Group share -269 5 -274 The consolidated net income, Group share, was a net loss of €269 million in H1 2025, penalized by €136 million non-cash financial asset depreciation related to SYMBIO joint venture, while the €5 million profit generated in H1 2024 included a capital gain on disposal of €134 million. It also reflected: Restructuring expenses The rapid pace of deployment of the EU-FORWARD program explains the high level of restructuring costs. The new operations in H1 2025 accounted for around 2,100 announced job cuts. With a total of 2,900 reductions in 2024, EU-FORWARD has already achieved half of its original target of 10,000 cuts, ahead of schedule. Net financial interest Net financial interest represented a charge of €236 million, an improvement of €14 million vs. H1 2024, notably reflecting impact of lower interest rates on floating-rate debt. Other financial income and expenses H1 2024 financial income included €134 million in capital gains realized by FORVIA HELLA from the sale of its stake in BHTC to AUO Corporation in China. Share of net income of associates: SYMBIO SYMBIO is a French company specializing in hydrogen systems for vehicles, jointly held by FORVIA, Michelin and Stellantis. Mid July 2025, Stellantis announced the termination of its hydrogen fuel cell technology development program, a decision with major implications for SYMBIO, which relies on the carmaker for over 80% of its business serious operational and financial risks for SYMBIO's future, FORVIA booked a non-cash depreciation of the financial assets related to the joint venture, consolidated under equity method, for €136 million. H1 2025 CONSOLIDATED CASH FLOW STATEMENT in €m H1 2025 H1 2024 Change Operating income 722 700 +22 Depreciation and amortization 1,040 935 +105 Adj. EBITDA 1,762 1,635 +127 Capex -274 -419 +145 Capitalized R&D -420 -507 +87 Change in WCR including factoring -24 97 -121 Restructuring -109 -90 -19 Other (operational) -27 -52 +25 Financial expenses -269 -289 +20 Taxes -221 -175 -46 Net cash flow 418 201 +217 Net cash flow increased by 108% to €418 million, with a quality improvement reflecting three recurring elements: The increase of the EBITDA that stood at 13.1% of sales, up 100bps vs. H1 2024, The 35% reduction of Capital expenditure, primarily in Europe, The 17% decrease of Capitalized R&D, essentially driven by the 11% reduction of Gross R&D (-€130 million). Change in working capital and factoring represented an outflow of €24 million, resulting from: a limited cash-out (€92 million) from working capital, with controlled inventories and net outflows from account receivables and payables, a €68 inflow from factoring to anticipate collection of tariffs recovery in the US. Amount of receivables factoring was kept below €1.3 billion at June 30, 2025. The year-on-year increase in tax cash-out mainly reflects the €68 million withholding tax refund received in H1 2024, linked to the extraordinary dividend from FORVIA HELLA received in 2023. After dividends paid to minorities (€56 million), new leases contracted (€72 million, reduced by 42%) and €90 million of other flows (mainly on change in currencies), net financial debt at June 30, 2025 was reduced by 193 million vs December 31, 2024 and stood at €6,430 million. Net debt/Adj. EBITDA ratio stood at 1.8x at June 30, 2025, vs. 2.0x at December 31, 2024. GROUP DEBT MATURITY Improved debt profile through active refinancing since the start of 2025 Since the start of the year and to date, the Group has successfully issued cumulated amount of c. €1.7 billion of new debt instruments, essentially maturing in 2030. New issuances reflected enhanced diversification of sources (Euro bond market, inaugural bond on the USD and c.€220 million of Schuldschein notes issued in July 2025). These proceeds were used to buy back 2026 maturities, now mostly cleared like the 2025 ones, as well as a portion of 2027 maturities. In parallel, the Group extended from June 2027 to June 2028 the maturity of a €650m bank loan. In all, these transactions allowed FORVIA to extend its average debt maturity1, now of 3.3 years compared to 3.1 at end of 2024. Gross debt was reduced by €321 million to €10,802 million at June 30, 2025 and gross cash by €128 million to 4,372 million. OTHER H1 2025 HIGHLIGHTS Business transformation and deleveraging We have been conducting a comprehensive review of the portfolio to prioritize leadership positions per product line over overall size. It includes an analysis across the 6 business groups and 24 product lines of the Group, to identify higher synergies, simplify scopes, and discontinue certain activities. In particular, it was decided to reduce the cash burn of the hydrogen activities while maintaining their long-term strategic importance. Concurrently, disposal processes have progressed, with the number of eligible assets revised upward and sizeable disposal processes on going. Major initiatives to boost agility and performance through a highly efficient organization The automotive industry is navigating a complex and fast-evolving environment, demanding greater agility and responsiveness. To support its profound transformation, the Group initiated two strategic projects to lead change effectively. The organization model is being transformed, with a clear P&L reporting structure defined. The new setup is division-centric, promoting higher levels of accountability and empowerment across teams. Through the SIMPLIFY Project, the Group aims to reinvent its ways of working across SG&A and indirect operations. It conducted a thorough benchmarking exercise to identify areas for improvement, leading to the definition of key structural levers, such as eliminating non-essential tasks, automating transactional activities with GenAI, and optimizing organizational design. The project ambition is to reduce the cost baseline by 110 million euros by 2028, supported by restructuring costs of c.150 million euros over 2025–2028. Order intake In H1 2025, FORVIA recorded order intake of €14 billion, compared to €15 billion in H1 2024, reflecting delayed tenders, notably in North America in the context of new tariffs imposed by the US administration. This order intake continued to demonstrate solid momentum in Electronics and in China: Electronics accounted for 34% of the total order intake Asia represented 36%, including 30% from China H2 2025 OUTLOOK AND 2025 FULL-YEAR GUIDANCE CONFIRMED The Group anticipates the production environment to remain volatile and uncertain. Based on S&P Mobility July estimates, the automotive market production is expected to reach 45 million LVs in H2 2025, slightly above H1 would represent a drop by 2.2% vs. H2 2024, with all main regions being impacted, including China. The geographic mix that was strongly unfavorable in H1 (-4 pts) is expected to level off. To preserve its performance, the Group will maintain rigorous cost control and disciplined cash management. It will also benefit from higher savings related to the EU-FORWARD program. Therefore, taking into account the tariffs enacted to date, the Group confirms its 2025 full-year guidance*: Sales between €26.3bn and €27.5bn, at constant exchange rates** Operating margin between 5.2% and 6.0% of sales Net Cash-flow ≥2024 level (i.e. 655M€) Net debt/Adjusted EBITDA ratio ≤1.8x at December 31, 2025 on a organic basis*** Beyond this organic deleveraging target, the Group is committed to restore a solid balance sheet with the objective of reducing Net debt/Adjusted EBITDA ratio below 1.5x in 2026, supported by disposals. *The guidance assumes no other major disruption materially impacting production or retail sales in any major automotive region during the year** 2024 average exchange rates: EUR/USD = 1.08, EUR/CNY = 7.79***With no net contribution from asset disposals FINANCIAL CALENDAR October 20, 2025 Q3 2024 sales announcement (before market hours) February 24, 2026 FY 2025 results announcement (before market hours) Capital Market Day A webcasted conference call will be held today at 09:00am (CET). If you wish to follow the presentation using the webcast, please access the following link: A replay will be available as soon as possible. You may also follow the presentation via conference call: France +33 1 70 91 87 06 United Kingdom +44 (0) 207 107 06 13 United States 1 (1) 631 570 56 13 PRESS ANALYSTS/INVESTORS Christophe MALBRANQUEGroup Media Relations Director+33 (0) 6 21 96 23 Adeline MICKELERGroup Head of Investor Relations+33 (0) 6 61 30 90 Sébastien LEROYDeputy Head of Investor Relations +33 (0) 6 26 89 33 About FORVIA, whose mission is: 'We pioneer technology for mobility experiences that matter to people'. FORVIA, a global automotive technology supplier, comprises the complementary technology and industrial strengths of Faurecia and HELLA. With around 250 industrial sites and 78 R&D centers, over 150,000 people, including more than 15,000 R&D engineers across 40+ countries, FORVIA provides a unique and comprehensive approach to the automotive challenges of today and tomorrow. Composed of 6 business groups and a strong IP portfolio of over 13,000 patents, FORVIA is focused on becoming the preferred innovation and integration partner for OEMs worldwide. In 2024, the Group achieved a consolidated revenue of 27 billion euros. FORVIA SE is listed on the Euronext Paris market under the FRVIA mnemonic code and is a component of the CAC SBT 1.5° index. FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen. APPENDICES H1 SALES AND OPERATING MARGIN BY BUSINESS GROUPS Sales In €m H1 2025 H1 2024 Change Organic Change SEATING 4,305 4,197 +2.6% +3.7% ELECTRONICS 2,286 2,091 +9.3% +10.0% INTERIORS 2,497 2,557 -2.3% +0.1% LIGHTING 1,849 1,968 -6.1% -5.5% CLEAN MOBILITY 2,043 2,191 -6.8% -4.2% LIFECYCLE SOLUTIONS 497 530 -6.2% -3.2% GROUP 13,477 13,534 -0.4% +1.1% Organic growth was mostly driven by Electronics and Seating: Sales in Seating benefited from robust dynamic in China, especially with BYD and Chery. Europe recorded mid-single digit growth supported by BMW (frames and complete seats) and Renault (Master and 5 E-Tech), Sales in Electronics rose double-digit with solid growth in all regions. Sales were mostly driven by Japanese OEMs in Asia, by VW and Stellantis in Europe and GM in North America, Interiors: Organic sales were flat, penalized by strong comparable on tooling sales in North America and Europe. Sales in China rose at double-digit, supported by ramp up of programs with BYD, Lighting business was penalized by discontinuation of programs, Clean Mobility were down mid-single digit, notably penalized by the disposal of Hug Engineering. Sales were almost flat in Q2, supported by solid performance in North America (high single digit growth) where activity was lifted by Ford, Lifecycle Solutions activity was penalized by overall low level of its customer investments. Operating income In €m H1 2025 H1 2024 Change SEATING 239 194 +23.0% % of sales 5.5% 4.6% +0.9 pt ELECTRONICS 142 122 +17.0% % of sales 6.2% 5.8% +0.4 pt INTERIORS 48 37 +29.5% % of sales 1.9% 1.4% +0.5 pt LIGHTING 81 99 -17.8% % of sales 4.4% 5.0% -0.6 pt CLEAN MOBILITY 167 187 -10.5% % of sales 8.2% 8.5% -0.3 pts LIFECYCLE SOLUTIONS 45 62 -27.6% % of sales 9.1% 11.7% -2.6 pts GROUP 722 700 +3.1% % of sales 5.4% 5.2% +0.2 pt Group operating margin expansion in H1 2025 was supported by noticeable margin improvement at Seating, Interiors and Electronics: Operating margin expanded by 90 bps at Seating, benefiting from operating leverage in Europe and China, Operating margin improved by 40 bps in Electronics, driven by further catch-up of Clarion activities and on-going improvement of HELLA's activities, Profitability was up 50 bps at Interiors, with more than 100 bps expansion in Europe but with some underperforming plants in North America, Lighting profitability was penalized by missing volumes and operational difficulties in North America but improved in Europe, Clean Mobility maintained a high-quality margin of 8.2% despite sales decline. Operating margin was around 10% excluding hydrogen activities. Lifecycle Solutions profitability suffered from an unfavorable product mix H1 SALES AND OPERATING MARGIN BY REGIONS Sales In €m H1 2025 H1 2024 Change Organic Change Currency change Perf vs. auto prod EMEA 6,570 6,518 +0.8% +1.6% -0.8% +5 pts o/w Europe 6,421 6,353 +1.1% +1.9% -0.8% +6 pts AMERICAS 3,499 3,686 -5.1% -2.4% -2.7% - o/w North America 3,116 3,283 -5.1% -4.0% -1.1% - ASIA 3,408 3,331 +2.3% +4.0% -1.7% -4 pts o/w China 2,563 2,566 -0.1% +1.5% -1.6% -10 pts o/w Rest of Asia 845 764 +10.6% +12.5% -2.0% +10 pts GROUP 13,477 13,534 -0.4% +1.1% -1.5% -2 pts FORVIA recorded outperformance in all regions but China in H1: EMEA: In a market declining by 4% (S&P Mobility July estimate), sales in Europe ex. Russia recorded positive organic growth of 1.9%, showing 6 points of outperformance, driven by Seating, Electronics and Lighting, Americas: in North America, in a market down by 4.1%, product sales (excluding tooling sales that stood at a high level in H1 2024) dropped by only 2%, slightly outperforming the market, notably supported by Electronics and Clean Mobility, Asia: China recorded organic growth of 1.5%, supported by double-digit growth with Chinese OEMs, but underperformed the market. In the Rest of Asia, growth of 12.5% represented an outperformance of 10 points. Operating income In €m H1 2025 H1 2024 Change EMEA 268 202 +32.9% % of sales 4.1% 3.1% +1 pt AMERICAS 122 166 -26.4% % of sales 3.5% 4.5% -1 pt ASIA 331 332 -0.3% of sales 9.7% 10.0% -0.3 pt GROUP 722 700 +3.1% % of sales 5.4% 5.2% +0.2 pt Operating margin evolution were contrasted by region: EMEA: Operating margin was up 100 bps where the execution of EU-FORWARD yielded first significant results, Americas: profitability was penalized by underperformance in North America on missing volumes and operational challenges at Interiors and Lighting, Asia maintained an operating margin close to double digit reflecting strong progress in Rest of Asia and light decline in China. Q2 SALES BY BUSINESS GROUPS AND REGIONS By Business Groups In €m Q2 2025 Q2 2024 Change Organic Change SEATING 2,152 2,221 -3.1% -0.3% ELECTRONICS 1,142 1,081 +5.6% +7.9% INTERIORS 1,280 1,361 -5.9% -1.4% LIGHTING 914 975 -6.2% -4.1% CLEAN MOBILITY 1,041 1,109 -6.1% -1.0% LIFECYCLE SOLUTIONS 246 256 -4.0% +0.6% GROUP 6,775 7,003 -3.3% +0.1% By RegionsQ2 2025 Q2 2024 Change Organic Change Currency change Perf vs. auto prod (bps) EMEA 3,330 3,383 -1.6% -0.3% -1.3% +2 pts o/w Europe 3,252 3,294 -1.3% -0.1% -1.2% +2 pts AMERICAS 1,766 1,904 -7.2% -1.1% -6.2% +1 pt o/w North America 1,561 1,692 -7.8% -2.9% -4.9% - ASIA 1,679 1,716 -2.1% +2.4% -4.5% -4 pts o/w China 1,259 1,320 -4.6% +0.4% -5.0% -9 pts o/w Rest of Asia 420 396 +5.9% +8.9% -3.0% +7 pts GROUP 6,775 7,003 -3.3% +0.1% -3.4% -2 pts DISCLAIMER This presentation contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future FORVIA's results or any other performance indicator. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "objective", "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "would,", 'will', "could,", "predict," "continue," "convinced," and "confident," the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, financial projections and estimates and their underlying assumptions including, without limitation, assumptions regarding present and future business strategies (including the successful integration of HELLA within the FORVIA Group), expectations and statements regarding FORVIA's operation of its business, and the future operation, direction and success of FORVIA's business. Although FORVIA believes its expectations are based on reasonable assumptions, investors are cautioned that these forward-looking statements are subject to numerous various risks, whether known or unknown, and uncertainties and other factors, all of which may be beyond the control of FORVIA and could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties and other factors, please refer to public filings made with the Autorité des Marchés Financiers ('AMF'), press releases, presentations and, in particular, to those described in the chapter 2."Risk factors & Risk management' of FORVIA's 2024 Universal Registration Document filed by FORVIA with the AMF on March 7, 2025 under number D. 24-0080 (a version of which is available on Subject to regulatory requirements, FORVIA does not undertake to publicly update or revise any of these forward-looking statements whether as a result of new information, future events, or otherwise. Any information relating to past performance contained herein is not a guarantee of future performance. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice. The historical figures related to HELLA included in this presentation have been provided to FORVIA by HELLA within the context of the acquisition process. These historical figures have not been audited or subject to a limited review by the auditors of FORVIA. FORVIA HELLA remains a listed company. For more information on FORVIA HELLA, more information is available on This presentation does not constitute and should not be construed as an offer to sell or a solicitation of an offer to buy FORVIA securities. DEFINITIONS OF TERMS USED IN THIS DOCUMENT Sales growth FORVIA's year-on-year sales evolution is made of three components: A 'Currency effect', calculated by applying average currency rates for the period to the sales of the prior year, A 'Scope effect' (acquisition/divestment), And 'Growth at constant currencies'. As 'Scope effect', FORVIA presents all acquisitions/divestments, whose sales on an annual basis amount to more than €250 million. Other acquisitions below this threshold are considered as 'bolt-on acquisitions' and are included in 'Growth at constant currencies'. In 2021, there was no effect from 'bolt-on acquisitions'; as a result, 'Growth at constant currencies' is equivalent to sales growth at constant scope and currencies also presented as organic growth. Operating income Operating income is the FORVIA group's principal performance indicator. It corresponds to net income of fully consolidated companies before: Amortization of intangible assets acquired in business combinations. Other non-recurring operating income and expense, corresponding to material, unusual and non-recurring items including reorganization expenses and early retirement costs, the impact of exceptional events such as the discontinuation of a business, the closure or sale of an industrial site, disposals of non-operating buildings, impairment losses recorded for property, plant and equipment or intangible assets, as well as other material and unusual losses. Income on loans, cash investments and marketable securities; Finance costs. Other financial income and expense, which include the impact of discounting the pension benefit obligation and the return on related plan assets, the ineffective portion of interest rate and currency hedges, changes in value of interest rate and currency instruments for which the hedging relationship does not satisfy the criteria set forth in relationship cannot be demonstrated under IFRS 9, and gains and losses on sales of shares in subsidiaries. Taxes. Adjusted EBITDA In compliance with the ESMA (European Securities and Markets Authority) regulation, the term 'Adjusted EBITDA' has been used since January 1, 2022. Net cash flow Net cash flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal of financial assets, and new or extended leases. Repayment of IFRS 16 debt is not included. Net financial debt Net financial debt is defined as follow: Gross financial debt less cash and cash equivalents and derivatives classified under non-current and current assets. It includes the lease liabilities (IFRS 16 debt). 1 Excluding commercial paper, leases and overdraft Attachment 2025 07 28 FORVIA H1 2025 RESULTS PR_ENError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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The US and China are due to start a fresh round of talks on Monday as expectations grow that the world's two biggest economies could agree a 90-day extension to their trade war truce. The meetings in Sweden - led on Washington's side by Treasury Secretary Scott Bessent and for Beijing by Vice Premier He Lifeng - come hours after US President Donald Trump announced a framework tariffs deal with the European Union. The current 90-day truce between the US and China - which saw the two countries temporarily lowering tariffs on each other - is set to end on 12 August. Since Trump returned to the White House in January, the US and China had raised import levies on each other to more than 100%. The current 90-day tariffs pause came after top officials from the US and China met in Geneva and London earlier this year. Last week, Bessent said talks with China were in "a very good place" and suggested the new round of talks could result in a second truce. On Monday, citing sources on both sides, the Hong Kong-based South China Morning Post reported that the US and China are expected to extend the truce by another three months. The BBC has contacted the Chinese embassy in the US and the US Treasury Department for comment. The latest US-China talks come after Washington struck deals with both the EU and Japan in the last week. On Sunday, Trump and European Commission President Ursula von der Leyen announced a trade agreement framework. It ended a months-long standoff between two of the world's biggest economic partners. Last week, Trump said Washington had agreed a "massive" trade deal with Tokyo. Under the agreement, Japan would invest $550bn (£407bn) in the US while its goods sold to America would be taxed at 15% when they reach the country - below the 25% tariff Trump had threatened. The US has also struck tariffs deals with the UK, Indonesia and Vietnam. At 10%, Britain has negotiated the lowest US tariff rate so far. No similar breakthrough is expected from the US-China talks this week but, with expectations of an extension to their truce, there are hopes that global trade will not be hit by fresh tariffs disruption. Asia is reeling from Trump's tariff salvo – is anyone winning? What the US-Japan deal means for Asia and the world Sign in to access your portfolio
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- New York Times
U.S. and China Meet as Trade Truce Nears Expiration
Top officials from the Trump administration will meet with their Chinese counterparts in Sweden this week for their third formal round of economic talks since President Trump raised tariffs on Chinese imports to triple-digit levels this year. The primary goal is to extend a fragile trade truce that has prevented a devastating clash between the world's largest economies. The discussions are scheduled for Monday and Tuesday in Stockholm. Treasury Secretary Scott Bessent and Jamieson Greer, the United States trade representative, are leading the U.S. delegation. He Lifeng, the vice premier for economic policy, has been leading the talks on behalf of China. The negotiations come during a pivotal week for the global economy, which has been gripped by uncertainty as a result of Mr. Trump's chaotic trade agenda. The Trump administration has been trying to win concessions from many countries before an Aug. 1 deadline for reimposing tariffs announced in April. Those levies were suspended in order to reach trade deals. Over the last week, the Trump administration has announced deals with some of America's biggest trading partners in quick succession. Last Tuesday, the United States and Japan finally agreed to a deal that included a 15 percent tariff on Japanese imports and a pledge from Japan to invest $550 billion in the United States. On Sunday, Mr. Trump announced that he had also reached a deal with the European Union, a 27-nation bloc whose economies rely on exports to the United States. The deal would put a 15 percent tariff on many European exports, including cars. But one of the biggest unknowns is what will happen with China, which remains one of America's largest source of imports. After a tit-for-tat period of tariffs and retaliation, the two nations have come to something of an uneasy truce after talks in Geneva in May, and in London in June. On Sunday, before he met with European officials, Mr. Trump implied that some kind of trade arrangement with China might be close at hand. 'We just struck a deal with Japan as you know, and we're very close to a deal with China,' he said. This will be the first meeting between the countries without an imminent crisis, like the tariff standoff or China's economically crippling ban on rare earth exports this year. Trade experts said the list of potential topics for discussion was long, ranging from Mr. Trump's push to get China to stop the flow of fentanyl to the United States, to America's concerns about its purchases of Russian and Iranian oil, and recent exit bans that have prevented U.S. citizens from leaving China. U.S. officials appear to be looking forward to more ambitious trade talks in the months to come. Those could include Chinese purchases of American products, steps to open the Chinese market and, potentially, Chinese investment in the United States. They are also likely seeking to lay the groundwork for a potential meeting between Mr. Trump and Xi Jinping, the Chinese leader, this year. Administration officials are considering a trip to Beijing before a meeting of Asian and Pacific countries in South Korea in October, or potentially connecting Mr. Trump and Mr. Xi on the sidelines of an international meeting. Michael Pillsbury, a former government official who has advised the Trump administration on China, said this would be Mr. Trump's sixth summit meeting with Mr. Xi. Each of those summits had a minimum of two hours of dialogue, and Mr. Trump went prepared with specific deal-making requests, he said. 'The president feels it's better to deal face to face,' he said. Trade experts are also wondering whether U.S. technology controls or an agreement to transfer ownership of TikTok may be on the negotiating table. On CNBC on Thursday, Howard Lutnick, the secretary of commerce, said that the United States had submitted a proposal to China for transferring ownership of TikTok to American companies, and that the administration was waiting for the Chinese response. The topic was 'not officially' part of the trade talks, he said, 'but unofficially, of course.' Tensions between the United States and China started to spiral after Mr. Trump announced his 'Liberation Day' tariffs in early April. China was the only country to immediately retaliate, matching Mr. Trump's tariffs of 34 percent with 34 percent tariffs on American products. Beijing also set up a licensing system to restrict exports of seven rare earth elements that are processed almost exclusively in China and used in electric cars, smart bombs and other high-tech devices. Mr. Trump then responded by ratcheting up tariffs on Chinese products to a minimum of 145 percent, which brought much of the trade between the countries to a halt. The previous rounds of negotiations secured a temporary truce that included China's relaxing its restrictions on shipments of valuable rare earth minerals and magnets needed by U.S. manufacturers. In return, U.S. officials agreed to roll back limits on exports of U.S. products and technology, including ethane and airplane parts, as well as the proposed visa restrictions. U.S. tariffs on Chinese imports were scaled back to 30 percent, while China has 10 percent tariffs on American products. The truce is scheduled to expire on Aug. 12, after which tariffs would rise 10 percentage points. However, Mr. Bessent has been optimistic that the truce could be extended. In an interview on the Fox Business Network last week, Mr. Bessent said that 'trade is in a good place' with China. He added that he hoped to begin having broader discussions with his counterparts about rebalancing the Chinese economy and encouraging China to curb purchases of Russian and Iranian oil. Mr. Bessent said China was in a manufacturing slump and faced a residential real estate market crisis. He argued Beijing must focus on building a consumer economy. 'They can't export their economic problems to the rest of the world, they need to solve them,' Mr. Bessent said. U.S. companies continue to have a rash of criticisms about doing business in China, including the country's newly established rare earth licensing system. The processing time for licenses is long, American firms say, and China requests proprietary and sensitive business information as part of the applications. In a survey released this month, members of the U.S.-China Business Council said strained relations and tariffs between the two countries remained their biggest concerns. But they also said Chinese policies favoring domestic companies were eroding confidence in doing business in the country.
