Vitesco Q2 Results Hit by Industry Headwinds, Maintains 2022 Guidance; Slight FVE Increase to EUR 89

Narrow-moat-rated Vitesco reported second-quarter earnings per share of EUR 0.92, well ahead of the EUR 0.01 loss per share FactSet consensus estimate by EUR 0.93 and EUR 0.92 higher than the year-ago pro forma result (Vitesco was spun off from Continental in September 2021). Despite sporadic customer production from the chip shortage, the Ukraine crisis, and China COVID-19 lockdowns, consolidated revenue increased 3% to EUR 2.2 billion from EUR 2.1 billion last year and beat the consensus by 2%. Excluding favorable currency, organic revenue declined 1% versus flat global light vehicle production. However, core organic revenue, which excludes wind-down business lines, increased 3%, outperforming the market due to new business launches and price increases to recover elevated costs.