Nexteer Automotive Reports Strong First Half 2017 Results
Nexteer announced robust financial performance for the first half of 2017 with Revenue increasing by 2.6%, Gross Profit increasing by 11.1%, and Net Profit increasing by 20.7% when compared with the same period in 2016.
AUBURN HILLS, Michigan, Aug. 15, 2017 /PRNewswire/ -- Nexteer Automotive, a global leader in intuitive motion control, today reported financial results for the six-month period ended June 30, 2017. Revenue reached U.S. $1.974 billion, an increase of 2.6% over the same period in 2016; gross profit reached U.S. $371.5 million, an increase of 11.1% over the same period in 2016; and net profit reached U.S. $179.7 million, an increase of 20.7% over the same period in 2016. The company's backlog of booked business was $24.0 billion as at June 30, 2017.
The strong financial results highlight Nexteer's continued focus on delivering long-term profitable growth. In the first half of 2017, the company launched 15 new product applications across multiple regions and customers, including 4 in North America, 9 in Asia-Pacific, and 2 in Europe and South America. These new programs include two major product lines: electric power steering and driveline.
In the first half of 2017, the company made two significant announcements related to ADAS and Automated Driving with the introduction of new product offerings leveraging its steer-by-wire technology, Nexteer Steering on Demand™ System and Nexteer Quiet Wheel™ Steering. Nexteer also announced its intent to form a joint arrangement with Continental Automotive Systems, Inc. focused on the advancement of motion control systems and actuator components for automated driving. Separately, the company also formed a joint venture with Dongfeng Motor Parts and Components Group Co., Ltd. in China for expanded business opportunities in the Asia-Pacific region.
Michael Richardson, board executive director and president of Nexteer Automotive said, "Through careful expansion of our global footprint, strategic alliances, product diversity and program launches in our major product areas, Nexteer is on track to maintain long-term profitable growth."
Continued steady industry production and new product launches in North America, China and Europe led to increased volume and delivered continued revenue growth. Net profit increased 20.7% as a result of successful launch of new programs, improved product line mix, improved operating efficiency and cost competitiveness.
Guibin Zhao, Chairman and CEO of Nexteer Automotive said, "The company's interim results provide tangible evidence that our global team's commitment to improving operational efficiency and bolstering Nexteer's position as 'A Leader in Intuitive Motion Control'. Through unceasing innovation and exploring emerging product opportunities, we will continue to refine our business model and secure competitive market advantages."
ABOUT NEXTEER
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 assistance 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 25 manufacturing plants, 3 regional engineering centers and 13 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, Fiat Chrysler, Ford, GM, PSA Groupe, Toyota and VW, as well as automakers in India and China. www.nexteer.com
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