Autotalo Wetteri posts first-quarter loss as new car sales show signs of recovery

Finnish car retailer Autotalo Wetteri reported a loss of 2.1 million euros for the first part of the year, the company said in a statement reported by Yle.

The group’s revenue for the period was 107.8 million euros, down 7 percent from 115.5 million euros in the same period last year. Adjusted operating profit was a loss of 1.5 million euros, while operating profit stood at minus 2.1 million euros.

Revenue from passenger car sales fell 8 percent year-on-year. The company, headquartered in Oulu, said the car market started slowly but picked up toward the end of the first quarter.

The revenue decline was driven by lower delivery and invoicing volumes of new and used cars compared with last year, as well as the sale of heavy vehicle maintenance operations in Joensuu and Kajaani, which had an impact of about minus 2.4 million euros.

Outlook points to growth

Wetteri expects its revenue to grow compared with last year and for adjusted operating profit to increase and turn positive. Customer orders for new cars rose 23 percent from the comparable period, and the order backlog grew 39 percent from the turn of the year.

The automotive industry forecasts a 6 percent increase in new passenger car registrations this year, which would mean about 80,000 cars. The expected boost is attributed to factors including a scrapping premium currently in effect and income tax cuts, as well as the extension of a tax incentive for fully electric company cars through the end of 2029.