French suppliers MGI Coutier SA, Montupet SA and Plastic Omnium Co. were the stars of the second quarter as each increased its value to shareholders by 37 percent or more in the three-month period.
MGI Coutier SA, a maker of fluid transfer systems for automakers such as PSA/Peugeot-Citroen SA, Renault SA, BMW and Volkswagen, led the table with a gain of 38.8 percent. The company swung to a consolidated net profit of 14.7 million euros in 2009 versus a net loss of 9.4 million euros in 2008. The company attributed the positive results to cost-cutting measures made in 2009 that included the closures of a Mexican plant and an Indian r&d center as well as temporary layoffs in France. The company said the improvement in its performance started in the second half of 2009 and continued in the first three months of 2010.
This year, MGI Coutier plans to invest 15 million euros in its production facilities, particularly in France. It also will establish a 1 million euro plant in northern India.
Engine parts maker Montupet, which does the majority of its business with PSA, Renault, General Motors Co. and Ford Motor Co., was second on the table followed by Plastic Omnium, which produces front-ends and body panels.
Of the 20 suppliers tracked by the Automotive News Europe/PricewaterhouseCoopers Transaction Services Shareholder Value Index, 11 reported gains in shareholder value and seven had a double-digit increase during the quarter.
"The increasing returns seen in Q1 have continued into Q2, with parts suppliers continuing to see the benefits of the cost-cutting measures implemented in 2009," said Jason Wakelam, leader of PwC UK's Automotive Transaction Services. "A continuation of the apparent growth in new-car volumes will dictate whether suppliers will continue to generate these positive returns in the remainder of the year."
At the bottom of the table was Kongsberg Automotive Holding ASA of Norway, which saw it shareholder value decrease 36.4 percent during the April-June period.
Kongsberg is showing signs that it is ready for a rebound. In June, the company said that it had won three contracts worth a total of 7 million euros to supply gearshift systems to unnamed customers for the next five to six years. The parts will be made at Kongberg's plants in Cluses, France and Mullsjo, Sweden.