[Stay on top of transportation news: Get TTNews in your inbox.]
Haldex reported a 13% drop in fourth-quarter revenue as well as a net loss that was less steep, compared with a year earlier, as sales to truck makers declined.
Other markets improved, however, the company said.
For the period ended Dec. 31, the Landskrona, Sweden-based company — which reports in krona — posted an approximate net loss of $7.3 million, or a loss of 15 cents per share, compared with a net loss of $18 million, or 41 cents, a year earlier.
Revenue dropped to $119.6 million from $138 million in the 2019 period.
The company is a global supplier of brake products and air suspension systems for heavy-duty trucks and trailers. Its gross margin improved by 3 percentage points to 28.6%, as the company closed production units as well as gained an increased share of aftermarket sales.
In the quarter, global new-truck production recovered, said Haldex CEO Helene Svahn, “but that demand moderated toward the end of the quarter. Sales to the truck segment fell by 24% in the quarter, primarily due to the fact that we lost a major customer in North America at the beginning of the year, and because of the effect of the coronavirus pandemic and a general market downturn.”
As for the company’s increased focus on the trailer market and aftermarket, she said that was effective.
“We achieved the same volume as in the fourth quarter of 2019. We thus had better development than the market in general,” she said.
“The aftermarket also showed a solid recovery from previous quarters, and globally we achieved the same level of sales in the quarter as in 2019,” Svahn said.
She added the costs of all the company’s ongoing savings programs had a positive impact of $5.8 million on quarterly earnings.
For the full year, the net loss was $36.3 million, or a loss of 78 cents, compared with a net profit of $600,000, 1.5 cents, a year earlier.
Revenue dropped to $480 million from $620 million in the same 2019 period.
Want more news? Listen to today's daily briefing below or go here for more info: