Automotive components and aftermarket group Metair on Wednesday reported a slight rise in earnings for the first half, with growth in its original equipment manufacturer (OEM) business partly offset by lower revenue from its aftermarket operations.Revenue increased 1% to R8.5bn in the six months to June, while earnings before interest and tax (ebit) rose by the same margin to R444.4m, the group said on Wednesday. However, earnings before interest, tax, depreciation and amortisation (ebitda) increased 8% to R759.6m and total HEPS increased 11% to 72c. HEPS from continuing operations rose 4% to 71c.No interim dividend was declared.The group generated R188.6m in cash from operations, compared with an outflow of R122.1m a year ago. Cash on hand increased to R620m from R143m, while net debt fell to R4.3bn from R5.1bn.Metair said cost-saving measures and spending discipline contributed to the ebit result. The group has extended the term of its South African obligor debt by five years and is finalising a refinancing for Hesto.The company operates in two main areas: it supplies automotive components to vehicle manufacturers for use in new vehicles and sells replacement parts for vehicles already on the road through its aftermarket business. The group operates in South Africa and sub-Saharan Africa, with automotive component manufacturing accounting for 67% of group revenue and aftermarket parts and retail for 33%.The OEM segment accounted for most of the group’s revenue growth. Revenue in this unit increased 4.4% to R5.73bn, while ebit rose 12% to R433m. The segment’s ebit margin increased to 7.6% from 7%.Metair’s manufacturing operations were affected by lower volumes from one local OEM customer, which were 25%, or 15,366 units, below the corresponding period.The company also completed the changeover to supplying a new vehicle model for a major OEM customer during the period. The company said demand for the new model was strong.The aftermarket (AFM) segment’s revenue was 5% lower at R2.81bn, with Metair citing competition in the market, particularly in batteries. AFM Africa ebit was unchanged at R54m.AutoZone, Metair’s automotive aftermarket retail business, is taking longer than expected to return to profitability, with progress about six months behind expectations, according to the group. Metair said it had closed loss-making businesses, restructured profitable operations and implemented a new business model over the past two-and-a-half years. It said the major restructuring was now substantially complete.Business Day