August 1, 2025: Asia-based lead and lithium major Leoch International has issued a profit warning in the wake of US tariff turmoil — and delayed the start-up of its new lead acid plant in Mexico.
Leoch said preliminary analysis indicated profit for the first half of 2025, ended last June, is expected to fall by about 60%-80%, compared to the corresponding period last year, despite an expectation the group will see a 10%-20% year-on-year revenue increase.
The setback is mainly due to additional import tariffs imposed by the US on goods in the second quarter of this year, which led to an increase in the costs of unspecified products on which Leoch had already paid taxes and delivered.
However, in a statement to the Stock Exchange of Hong Kong, based on the group’s preliminary review of unaudited consolidated accounts, Leoch chairman Dong Li said the sales price of affected products would not be increased until the end of 2025.
Meanwhile, operations in Mexico will now start in the fourth quarter of this year, instead of the planned second quarter. This was blamed on “the impact of the supply chain and construction progress”.
Leoch said it was still in the process of finalizing the results of the group for the first six months of the year. Interim results are set to be released on or before August 31.
Batteries International reported last April that Leoch had posted a near 20% boost in topline growth in annual results for 2024, driven by robust sales of the group’s mainstay lead battery technology across global markets.
Revenue for the year was Rmb16.1 billion ($2.2 billion) compared to Rmb13.5 billion the previous year, according to results posted on March 27, while net profit stood at Rmb564 million from Rmb568 million in 2023.
In May, Leoch announced it was strengthening ties with Japan-headquartered GS Yuasa and discussing plans to develop and market their respective brands worldwide.
The talks took place less than two years after Leoch signed an agreement to acquire controlling stakes in two China-based lead battery firms owned by Yuasa — Tianjin GS Battery and Yuasa Battery Shunde.
Editor’s note: EnerSys confirmed last April that it was closing its flooded lead acid battery manufacturing facility in Monterrey, Mexico and switching production to its existing Kentucky plant while expanding capacity in the US and Europe.
The company’s announcement came just hours before US president Donald Trump was set to unveil a raft of reciprocal tariffs on countries that impose duties on US goods.
