German power supply unit developer, Friwo, has revised its earnings and revenue outlook for 2023 due to a decline in demand in Europe, particularly in the electromobility segment.
Decreased Revenue Projection
Friwo now expects its revenue for the current year to range between 120 million and 130 million euros, compared to the previous forecast of between EUR140 million and EUR160 million.
Revised Profitability Guidance
The company has also adjusted its 2023 earnings before interest and taxes (EBIT) estimate to break-even, down from the previous expectation of a slight increase in profitability.
Second Quarter Impact
According to Friwo, the updated outlook is driven by “considerably lower development in the second quarter compared to the previous year.” In 2022, the company achieved an EBIT of EUR4.3 million and generated EUR184.9 million in revenue.
Factors Affecting Forecast
The revised forecast takes into account negative currency effects and start-up costs associated with the joint venture between Friwo and Uno Minda. Friwo holds a 49.9% minority stake in this Indian supplier of electric drive solutions.
Future Growth Outlook
Despite the challenges, Friwo projects a return to sustainable profitable growth by 2024.
