Latest news with #WEG
Mint
6 days ago
- Business
- Mint
Brazil Engine Maker Says Tariffs Are Hitting Long-Term Projects
(Bloomberg) -- Brazil's WEG SA, a provider of industrial machinery for global oil and power companies, said its clients are delaying long-term investments due to rising geopolitical tensions and new tariffs. Chief Financial Officer Andre Luis Rodrigues said the company is preparing actions to mitigate potential US tariffs of 50% on Brazil that are scheduled to take effect on Aug. 1. 'WEG has a strong global footprint and may reallocate its export routes,' Rodrigues said on the company's earnings call. For example, India could be used to serve the US market while Brazil supplies other countries, he said. Adjustments to production could take months, he added. WEG isn't expecting to raise prices because that could create openings for competitors, he said, adding that the company currently has good margins. The company, based in Jaragua do Sul, Brazil, has already partially passed on to clients the initial 10% tariffs imposed by the US, and it hasn't experienced any material impact on its financial results. WEG reported second-quarter net income and Ebitda, a measure of profitability that excludes items such as taxes and depreciation, that missed analysts' estimates. The shares fell as much as 3.2% in Sao Paulo trading on Thursday, extending the stock's decline following Wednesday's 8% drop that was sparked by the lower-than-expected results. The shares have declined about 30% so far this year, compared with an 11% gain for the benchmark Brazilian stock index. Related: Billionaire-Minting Engine Maker Gears Up to Fight Trump Tariffs --With assistance from Barbara Nascimento. More stories like this are available on
Yahoo
6 days ago
- Business
- Yahoo
Brazil's WEG expects to mitigate most impacts from Trump tariffs
SAO PAULO (Reuters) -Brazilian motor maker WEG said on Thursday it expects to offset most of the impact from the 50% tariff U.S. President Donald Trump said he would impose on Brazilian goods partly by adjusting some export routes. Analysts have cited WEG - whose motors are used in vehicles, wind turbines and power transmission lines - among the most exposed firms to the steep tariffs, which are due to take effect on August 1. The company on Wednesday reported lower-than-expected second-quarter results, noting that geopolitical uncertainties have limited long-term visibility and led some clients to postpone investment decisions for large projects. Chief Financial Officer Andre Rodrigues suggested on Thursday the firm could use its Brazilian operations to supply countries such as Mexico and India, whose products would in turn meet U.S. demand. "The execution may take a few months, but once the change is implemented, we expect to be able to mitigate most of these impacts," he told a call with analysts, though warning the move would also depend on the levies Trump imposes on other nations. WEG has plants in over a dozen countries, including the United States and Mexico, and has touted its global presence and broad product portfolio as factors that might help shield it from the tariffs' impacts. Rodrigues said that products made in Brazil currently account for less than a third of WEG's U.S. sales. He noted that the effects on WEG's second-quarter results of the 10% tariff Trump had initially imposed in April were small, saying that the firm made some price adjustments in the U.S. to offset the impact of those levies. "Looking ahead, at this point it's not possible to have a firm stance, given the many uncertainties and volatility in the trade structures being discussed," Rodrigues added. "But if the current situation persists, WEG does have an action plan."
Yahoo
6 days ago
- Business
- Yahoo
Brazil's WEG expects to mitigate most impacts from Trump tariffs
SAO PAULO (Reuters) -Brazilian motor maker WEG said on Thursday it expects to offset most of the impact from the 50% tariff U.S. President Donald Trump said he would impose on Brazilian goods partly by adjusting some export routes. Analysts have cited WEG - whose motors are used in vehicles, wind turbines and power transmission lines - among the most exposed firms to the steep tariffs, which are due to take effect on August 1. The company on Wednesday reported lower-than-expected second-quarter results, noting that geopolitical uncertainties have limited long-term visibility and led some clients to postpone investment decisions for large projects. Chief Financial Officer Andre Rodrigues suggested on Thursday the firm could use its Brazilian operations to supply countries such as Mexico and India, whose products would in turn meet U.S. demand. "The execution may take a few months, but once the change is implemented, we expect to be able to mitigate most of these impacts," he told a call with analysts, though warning the move would also depend on the levies Trump imposes on other nations. WEG has plants in over a dozen countries, including the United States and Mexico, and has touted its global presence and broad product portfolio as factors that might help shield it from the tariffs' impacts. Rodrigues said that products made in Brazil currently account for less than a third of WEG's U.S. sales. He noted that the effects on WEG's second-quarter results of the 10% tariff Trump had initially imposed in April were small, saying that the firm made some price adjustments in the U.S. to offset the impact of those levies. "Looking ahead, at this point it's not possible to have a firm stance, given the many uncertainties and volatility in the trade structures being discussed," Rodrigues added. "But if the current situation persists, WEG does have an action plan." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Automotive
- Reuters
Brazil's WEG expects to mitigate most impacts from Trump tariffs
SAO PAULO, July 24 (Reuters) - Brazilian motor maker WEG ( opens new tab said on Thursday it expects to offset most of the impact from the 50% tariff U.S. President Donald Trump said he would impose on Brazilian goods partly by adjusting some export routes. Analysts have cited WEG - whose motors are used in vehicles, wind turbines and power transmission lines - among the most exposed firms to the steep tariffs, which are due to take effect on August 1. The company on Wednesday reported lower-than-expected second-quarter results, noting that geopolitical uncertainties have limited long-term visibility and led some clients to postpone investment decisions for large projects. Chief Financial Officer Andre Rodrigues suggested on Thursday the firm could use its Brazilian operations to supply countries such as Mexico and India, whose products would in turn meet U.S. demand. "The execution may take a few months, but once the change is implemented, we expect to be able to mitigate most of these impacts," he told a call with analysts, though warning the move would also depend on the levies Trump imposes on other nations. WEG has plants in over a dozen countries, including the United States and Mexico, and has touted its global presence and broad product portfolio as factors that might help shield it from the tariffs' impacts. Rodrigues said that products made in Brazil currently account for less than a third of WEG's U.S. sales. He noted that the effects on WEG's second-quarter results of the 10% tariff Trump had initially imposed in April were small, saying that the firm made some price adjustments in the U.S. to offset the impact of those levies. "Looking ahead, at this point it's not possible to have a firm stance, given the many uncertainties and volatility in the trade structures being discussed," Rodrigues added. "But if the current situation persists, WEG does have an action plan."
Yahoo
23-07-2025
- Automotive
- Yahoo
Brazil's WEG reports Q2 earnings miss amid global volatility
SAO PAULO (Reuters) -Brazilian motor maker WEG on Wednesday reported a 10.4% year-on-year rise in its second-quarter net profit, but missed market forecasts amid what it called elevated volatility in global economics. The lower-than-expected figures raise further uncertainty for WEG, which analysts have cited among the companies most exposed to the 50% tariff U.S. President Donald Trump said he would impose on Brazilian goods from August 1. WEG reported a net income of 1.59 billion reais ($285.8 million) for the quarter, falling short of the 1.76 billion expected by analysts in an LSEG poll. Net revenue reached 10.2 billion reais, a 10.1% year-on-year increase, while core earnings as measured by EBITDA rose 6.5% to 2.26 billion reais. Analysts expected them to come in at 11.16 billion and 2.49 billion reais, respectively. WEG said the year-on-year growth was explained by a "solid performance" in the transmission and distribution infrastructure side of its long-cycle business, which makes equipment used in large projects such as transmission lines. "We were able to maintain the consistent growth and profitability of our businesses, even in a global political and economic scenario marked by uncertainty and high volatility," WEG's management said in a statement. The firm's closely watched EBITDA margin, nonetheless, fell by 80 basis points year-on-year to 22.1%. The company did not specifically address Trump's threatened tariffs, but reiterated confidence in its business model over the long-term, saying that it has financial flexibility as it continues to monitor market risks. "Our global production presence, diversified product portfolio and presence in many segments are fundamental to our business strategy, and allow us to quickly react to changing scenarios and mitigate possible macroeconomic impacts," it said. WEG has plants in over a dozen countries, including the United States and Mexico. ($1 = 5.5643 reais)
