SEWS expects 20% sales decline in Q4

Wiring systems manufacturer Sumitomo Electric Wiring Systems Romania (SEWS) estimates this year’s financial results will be hurt by activity in the second half of the year, following the recession on the European automotive market. For 2008, company representatives have predicted a 140 million-euro turnover, up 3% against last year’s 136.5 million euros. “The state of the European automotive industry has a major impact on us, and this recession, which has brought a sales decline, will also see the volume of orders to subassembly plants decline,” said Florin Ionut, financial and administrative manager of SEWS Romania. The European automotive market saw a 2% sales decline in the first six months of the year, to around 8.35 million vehicles. Ionut expects SEWS sales will see a 20% decline in the fourth quarter of the year, following a decline in orders from its main clients, Renault, Toyota and Honda.