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(Sharecast News) - UK auto parts maker Dowlais on Thursday revealed it had burned through 29m in cash due to US tariffs and held annual guidance as it reported a 2% rise in adjusted operating profits.
Operating profit for the six months to June 30 came in at 154m.
"Looking ahead, we remain on track to offset the tariff-related headwinds in the second half, and we continue to expect our full-year performance to be towards the lower end of our guidance range," said chief executive Liam Butterworth. The cash outflow compared with a 10m inflow last year.
The company is set to be acquired by US-based American Axle & Manufacturing in a $1.44bn due to be completed in the fourth quarter.
It said the cash flow result on was "primarily driven by the impact of tariffs....higher restructuring outflows" and the timing of dividend receipts from its Chinese joint venture.
The company in May warned annual earnings would likely come in at the lower end of previous guidance, citing increased economic uncertainty driven by US President Donald Trump's tariff policies, which have hammered car makers and related industries globally.
Reporting by Frank Prenesti for Sharecast.com
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