Magneti Marelli have reported a strong start to 2011, with Q1 revenue increasing 16% to €1.48m (versus €1.27m in Q1 of 2010) and their trading profit skyrocketing nearly 79% from €19m on 1.5% margin to €34m on 2.3% margin. The improvement in earnings is driven by higher sales volumes and improved production efficiencies which more than compensated for cost pressures from increased component prices.
The supplier noted that in Europe, a positive performance in Germany and higher production volumes for light commercial vehicles and the Alfa Romeo Giulietta compensated for a drop in production for external customers in Poland—and the American market is experiencing a recovery, and Brazil and China both contributed healthy levels of demand.
In the company’s Lighting segment , Q1 2011 revenue totaled €436m, an increase of 22% over last year. The growth was primarily driven by the German market and a recovery in the NAFTA region underpinned by new products launched in 2010. Performance in Turkey, Russia and China was also reported to be positive.
New product developments during the latest quarter included components for the new Lancia Ypsilon, for which Magneti Marelli developed LED headlights and tail lights.
