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Investing.com -- Inchcape PLC (LON:INCH) saw its shares dip 8.5% in London trading Tuesday after the British car distributor reported a decline in first-half revenue, citing softer demand for premium vehicles in the Asia-Pacific region amid U.S. trade measures.
The company reported a 15% organic revenue decline in Asia-Pacific at constant currency. The region makes up over a quarter of Inchcape’s total sales.
Chief Executive Duncan Tait told Reuters that Indonesia, the Philippines, and Hong Kong were among the hardest-hit markets. Premium vehicle volumes dropped 40% in Indonesia and 15% in the Philippines compared to a year earlier, he said.
For the six months ending June 30, Inchcape reported an adjusted operating profit of £247 million ($329 million), a 12% decrease at constant currency from the prior-year period, while profit before tax (PBT) slipped 4% to £200 million.
Total (EPA:TTEF) revenue for the period fell 4% to £4.32 billion, with organic sales down 3%.
The interim dividend was cut by 16% to 9.5p.
"We expect a -2% decline in consensus PBT estimates for full-year 2025 (FY25) to update for ongoing FX headwinds," Jefferies analyst James Wheatcroft said in a note.
While the company noted some logistical disruptions linked to U.S. tariffs introduced by President Donald Trump, it said these had no direct material impact on its business.
Despite the headwinds, Inchcape maintained its full-year guidance, expecting earnings per share to grow.