Standard Profil - comment

Standard Profil’s Q3 numbers highlight the continued issues with OEM production in Europe and the impact of raw material prices. Standard Profil has benefitted from ramp-ups in electric vehicle production, and, notably, Tesla is Standard Profil’s largest customer in Q3. Gross Profit and EBITDA are showing positive signs of the cost pass-through negotiations management have had with their clients.

However, we are disappointed with the reduction in guidance for FY22 with EBITDA reduced to €45-55m from €55-60m. The widening of the range, given we have 3 full quarters and 2/3rd the way through the last, is very surprising. YTD EBITDA is €36.7m. This highlights the underlying volume issue Standard Profil has, with uncertainty surrounding customers’ production volume widening the EBITDA range. In summary, and a recurring theme in the auto space, a strong order book but low production levels in the short term.

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