Dowlais Group narrows annual pretax loss, projects steady sales for 2025

Published 05/03/2025, 10:34
© Reuters.

Investing.com -- Dowlais Group, a UK-based engineering company, reported a reduction in its annual pretax loss for the previous year, attributing it to effective cost control measures.

These measures helped balance a decrease in revenue, which the company faced due to challenges in the auto market. For the current year, Dowlais projects its sales to remain steady at best.

On Wednesday, Dowlais revealed that its pretax loss for the last year had decreased to £215 million ($275.1 million). This is a significant reduction from the loss of £522 million the company incurred in 2023.

Earlier this year, in January, Dowlais agreed to a takeover by American Axle & Manufacturing (NYSE:AXL) Holdings, a deal valued at £1.16 billion and involving both cash and shares.

The company’s revenue experienced a drop, decreasing to £4.34 billion from £4.86 billion. The adjusted operating profit also fell by 8.7%, amounting to £324 million. Despite this, the company’s margin expanded slightly, going from 6.5% to 6.6%.

Looking ahead to 2025, Dowlais anticipates that its revenue will either remain steady or experience a mid-single digit decline. The company also predicts an adjusted operating margin between 6.5% and 7.0%, excluding any effects from currency fluctuations.

The company believes that expected savings from restructuring efforts will help counterbalance the impact of lower volumes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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