Dowlais Group PLC (LSE:DWL) rocketed to the top of the FTSE 250 as the car parts maker said things are tough but not getting worse.
In a trading update for ten months to 31 October, the former GKN Auto said underlying revenues had dropped 6.1% to £4.2 billion, mostly due to weakness in its ePowertrain operation.
Driveline outperformed global light vehicle production outside China with Chinese JV revenues flat.
Powder Metallurgy revenues declined marginally, mainly due to weaker volumes, while foreign exchange meant a group £173 million headwind resulting in an adjusted revenue decline for the group of 10%.
Adjusted operating margin for the period was 6.1% but has seen a 0.2% improvement from the first half of the year.
Dowlais reiterated full year guidance of a mid-to-high single-digit adjusted revenue decline and an adjusted operating margin of between 6.0% and 7.0% in constant currency.
Liam Butterworth, chief executive, hailed the resilience of its Driveline business.
“Additionally, the strategic review of our Powder Metallurgy business is progressing well,” he said.
Shares jumped 6.7p to 54.8p, halting a twelve-month decline.