US mulls equity stakes in chipmakers receiving CHIPS Act Funds - Reuters
Investing.com - Mips AB reported second-quarter results on Wednesday, largely in line with analyst expectations, with organic growth of 12% despite challenging market conditions caused by U.S. tariff uncertainty.
The company’s shares fell 2.3% following the announcement as investors reacted to weakness in the motorcycle segment and increased legal costs.
The Swedish helmet safety technology company posted net sales of SEK 135 million ($12.9 million), up 1% YoY and matching analyst expectations.
Adjusted earnings per share came in at SEK 1.20, down from SEK 1.53 in the same quarter last year.
Operating profit decreased to SEK 41 million from SEK 52 million a year earlier, with the operating margin contracting to 30.1% from 38.9%.
The profit decline was primarily attributed to legal costs related to a U.S. customer lawsuit where Mips is defending its intellectual property rights, though the company itself is not a direct party to the case.
"I am pleased that we achieved organic growth of 12% in the quarter despite very challenging conditions, where the tariff situation in U.S. creates significant uncertainty in the market," said CEO Max Strandwitz.
The Sports category, Mips’ largest segment, grew 3% YoY with continued volume growth in bicycle helmets.
However, the Motorcycle segment saw a 28% decline due to order postponements related to U.S. tariff concerns. The Safety category grew 12%, slower than previous quarters due to similar tariff uncertainties.
Mips noted that its business model shields it from direct tariff impacts since it sells products on an Ex Works basis, making buyers responsible for transport costs and tariffs.
The company also highlighted that many helmet brands are relocating production outside China to reduce dependency on single countries, which may temporarily shift focus away from new product development.
Despite these challenges, the company maintained a positive outlook, citing its strong market position and expanding global presence beyond the U.S. market.
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