(Reuters) -British auto parts supplier Dowlais reported a cash burn of 29 million pounds ($38.76 million) in the first half of the year, mainly due to the impact of U.S. tariffs.
U.S. tariffs have pummelled global automakers, forcing them to book billions of dollars in losses, issue profit warnings, slash forecasts and raise prices.
“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,” CEO Liam Butterworth said in a statement.
The company is set to be acquired by U.S. rival American Axle & Manufacturing in a $1.44 billion deal, which it expects to be completed in the fourth quarter.
Dowlais reported adjusted free cash outflow of 29 million pounds for the six months ended June 30, compared with a 10 million pounds inflow last year.
($1 = 0.7482 pounds)
(Reporting by Unnamalai L in Bengaluru; Editing by Eileen Soreng)
