Vitesco achieves billion-dollar turnover with EV components
The drive supplier Vitesco Technologies surpassed the one billion euro mark in turnover with electrification products for the first time in 2022. With electric drives and other components, Vitesco turned over around 1.1 billion euros, compared to 0.9 billion euros in 2021.
According to the supplier, electrification products are becoming increasingly important and will soon account for the majority of sales: Vitesco recorded incoming orders of 14 billion euros in the 2022 financial year, of which electrification products accounted for 10.4 billion euros. In total, Vitesco had an order book of 58.5 billion euros as of 31 December 2022, 46 per cent of which was in the electrification sector – and the trend is strongly upwards.
“Three quarters of our orders in 2022 came from the electrification business. That is a new record. The transition to electric vehicles is gaining momentum and is unstoppable now,” says CEO Andreas Wolf.
Currently, the former Continental division is still strongly attached to the combustion engine and other areas. Company-wide, sales in 2022 were 9.07 billion euros (+4.0 per cent), with 1.1 billion euros from electrification products resulting in an EV share of 12.1 per cent of sales. But on the basis of incoming orders, it is to be expected that this share will increase significantly.
This is also indicated by the growth in the Electrification Technology business unit, where turnover increased by 17.6 per cent to 692 million euros. This development was driven “by the high demand for high-voltage electric drives and power electronics, especially in China and Germany”. The remaining sales of electrification products came from the Electronic Controls and Sensing & Actuation units. In the medium term, the company aims to achieve electrification sales of 5 billion euros. According to the statement, about 90 per cent of this has already been booked in the order book.
The Electrification Technology business unit is not yet profitable. “Despite continued high upfront costs for future projects”, the division’s adjusted operating result improved to -257.7 million euros, Vitesco said. In 2021, there was still a minus of 273 million euros. The Electronic Controls (3.9 billion euros turnover, 166.2 million euros adjusted operating result) and Sensing & Actuation (3.5 billion euros turnover, 328.0 million euros adjusted operating result) divisions are already in the black.
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