Increased revenue to US$1.9 billion, up 17.1% year-over-year on constant currency
Attained strong business backlog of US$24.0 billion
Generated positive free cash flow
AUBURN HILLS, Michigan, Aug. 17, 2016 /PRNewswire/ -- Nexteer Automotive, a global leader in intuitive motion control, today reported financial results for the six month period ended June 30, 2016.
First Half 2016 Highlights:
- Revenue increased by approximately 17.1% to US$1,923.8 million (Six months ended June 30, 2015: US$1,642.3 million)
- Gross profit increased by approximately 31.2% to US$334.4 million (Six months ended June 30, 2015: US$254.8 million)
- Profit attributable to equity holders of the Company increased by approximately 54.3% to US$148.9 million (Six months ended June 30, 2015: US$96.5 million)
- Achieved a strong new business backlog of US$24.0 billion
"Nexteer delivered solid results in the first half of 2016, advancing its strong financial position and building a foundation for continued success," said Guibin Zhao, chairman and CEO of Nexteer Automotive. "Robust industry production and improved market dynamics in North America, China, and Europe drove strong customer demand and increased volume. The improvement in product mix due to the continued adoption of electric power steering and ADAS technologies, as well as the Company's increased exposure in China through new program launches and enhanced production capabilities, continue to ideally position Nexteer for continued growth in 2016 and beyond."
Revenue for the six months ended June 30, 2016 was US$1,923.8 million, an increase of US$281.5 million or a 17.1% increase from the six months ended June 30, 2015 of US$1,642.3 million. Revenue growth was driven by strength in the North America and China markets, improvement in Europe, the launch of new customer programs, and continued customer conversion to EPS. Revenue was negatively impacted by foreign exchange and would have increased an additional 1.1% from the six months ended June 30, 2015 excluding the foreign exchange impact.
Gross profit for the six months ended June 30, 2016 was US$334.4 million, an increase of US$79.6 million or 31.2% from US$254.8 million for the six months ended June 30, 2015. Gross profit percentage for the six months ended June 30, 2016 was 17.4%, a 1.9% increase from 15.5% for the six months ended June 30, 2015. The increase in both gross profit and gross profit percentage was attributed to increased market growth, continued rotation to EPS, and the effect of cost improvement initiatives. This was partially offset by depreciation on property, plant and equipment, and amortisation of capitalised product development costs.
Profit attributable to equity holders of the Company for the six months ended June 30, 2016 was US$148.9 million or 7.7% of total revenue, an increase of 54.2% compared to the six months ended June 30, 2015 of US$96.5 million or 5.9% of total revenue.
For the six months ended June 30, 2016, net cash generated from operating activities was US$168.6 million, a decrease of US$19.5 million compared to the six months ended June 30, 2015 of US$188.1 million. The decrease in cash flows from operating activities is primarily due to increased working capital to support higher income and increased taxes related to our earnings growth. For the six months ended June 30, 2016, Nexteer invested US$88.1 million and US$57.1 million in capital equipment and engineering product development, respectively. The Company was free cash flow positive for the period ended June 30, 2016.
As at June 30, 2016, Nexteer secured new contracts for a number of customer programs which are expected to begin production starting in the second half of 2016. As at June 30, 2016, the Company estimates the value of all booked business under contracts that have been awarded, but which have not yet begun production amounts to approximately US$24.0 billion, on an order-to-delivery basis, over the lifetime of the relevant vehicle programs.
Nexteer's interim results are discussed in further detail in the Company's interim results announcement for the six months ended June 30, 2016 which is available on the Investors section of the Company's website, www.nexteer.com/investor-center.
Nexteer Automotive – A Leader in Intuitive Motion Control – is a multi-billion dollar global steering and driveline business delivering electric and hydraulic power steering systems, steering columns, driveline systems as well as advanced driver assist systems (ADAS) and autonomous technologies for original equipment manufacturers. The company's global workforce of over 13,000 serves more than 50 customers in every major region of the world. The company has 21 manufacturing plants, five regional engineering centers and 11 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, Fiat Chrysler, Ford, GM, PSA Peugeot Citroen, Toyota and VW, as well as automakers in India and China. www.nexteer.com
SOURCE Nexteer Automotive