Today, Vitesco Technologies, a global frontrunner in advanced driving technologies and electrification solutions aimed at eco-friendly transportation, announced its financial outcomes for the third quarter of 2023.
In July-September 2023, Vitesco Technologies reported a significant order intake totalling 2.5 billion euros, with a notable 60%, or 1.5 billion euros, dedicated to electrification products. This surge in demand for electrification products has been consistent, as evidenced by the nearly 7 billion euros in orders received in the first nine months of the year. Although the company experienced a slight dip in overall sales, dropping to 2.20 billion euros in the third quarter of 2023 from 2.30 billion euros in the same period in 2022, this decline was primarily attributed to the strategic winding down of non-essential business segments. However, the electrification segment of the business demonstrated robust growth, with sales reaching 324 million euros in the July-September quarter, marking an approximate 30% increase year-over-year.
This growth is further highlighted in the company’s Electrification Solutions division, which saw a marked increase in sales, particularly in Asian and German markets. The division’s sales figures for the third quarter of 2023 stood at 799.7 million euros, up from 687.1 million euros in the same quarter of the previous year, representing an impressive organic growth rate of 21.8%.
CEO Andreas Wolf expressed confidence in the company’s trajectory, noting that Vitesco Technologies is on course to meet its order intake goals for the year and replicate the success seen in the electrification sector in previous years. Wolf emphasized the widespread demand for their products across all key regions and the breadth of their electrification portfolio. He also highlighted the launch of over 75 new products planned for this year and 2024, underscoring the company’s significant contributions to the growing electromobility market.
Looking ahead, Vitesco Technologies has reaffirmed its financial forecast for 2023. The company anticipates 9.2 to 9.7 billion euros in sales, with an expected adjusted EBIT margin between 2.9% and 3.4% and a projected free cash flow of approximately 50 million euros.
