Vitesco Technologies (XTER:VTSC, Financial) (Germany), a leading supplier of components for electromobility in the auto industry, was the top contributor to the Fund for the quarter. Vitesco reported results that had exceeded market expectations and maintained guidance for the fiscal year despite increasing inflation, a weaker economic environment and continued supply chain issues. The company is successfully raising prices with OEM customers to offset inflation and now expects to achieve a nearly 100% recovery in the second half. As a result, the profitability of the company’s core portfolio has been relatively resilient. Order intake for Vitesco’s burgeoning electrification products remains robust at EUR 2.3 billion in the second quarter and EUR 5.7 billion year-to-date. The company has also indicated that the order books are already sufficient to deliver the 2025 target of EUR 2 billion of revenue for the electrification technology segment. We are encouraged by the company’s momentum in electrification as well as the resilience of its more mature products. We believe Vitesco remains an attractive investment.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund third-quarter 2022 commentary.
