Back to previous section

Dowlais burns through £29m in cash due to US tariffs

UK auto parts maker Dowlais on Thursday revealed it had burned through £29m in cash due to US tariffs and held annual guidance as it reported a 2% rise in adjusted operating profits.

  • Dowlais Group
  • 07 August 2025 11:41:23

Source: Sharecast

Operating profit for the six months to June 30 came in at £154m.

"Looking ahead, we remain on track to offset the tariff-related headwinds in the second half, and we continue to expect our full-year performance to be towards the lower end of our guidance range," said chief executive Liam Butterworth. The cash outflow compared with a £10m inflow last year.

The company is set to be acquired by US-based American Axle & Manufacturing in a $1.44bn due to be completed in the fourth quarter.

It said the cash flow result on was "primarily driven by the impact of tariffs....higher restructuring outflows" and the timing of dividend receipts from its Chinese joint venture.

The company in May warned annual earnings would likely come in at the lower end of previous guidance, citing increased economic uncertainty driven by US President Donald Trump's tariff policies, which have hammered car makers and related industries globally.

Reporting by Frank Prenesti for Sharecast.com

N/A

Isin: N/A
Exchange: N/A
Sell:
N/A
Buy:
N/A
Change:
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Bank of Scotland is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Allfunds

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Refinitiv Logo

© 2025 Refinitiv, an LSEG business. All rights reserved.