Nexteer Automotive Reports Strong First Half 2018 Financial Results
Nexteer announced record financial performance for the first half of 2018 with Revenue increasing by 3.7% and Net Profit increasing by 11.1% when compared with the same period of 2017. Strong free cash flow in the period and a rising Backlog of Booked Business continue to well position the company for future growth.
AUBURN HILLS, Michigan, Aug. 14, 2018 /PRNewswire/ -- Nexteer Automotive, today reported financial results for the six-month period ended June 30, 2018, with revenue reaching US$2.047 billion, an increase of 3.7% when compared with the same period of 2017, and net profit of US$200 million, an increase of 11.1% when compared with the same period of 2017. The company generated free cash flow of US$183 million during the first half of 2018, reflecting a continued focus on operational efficiency and capital investment discipline. Nexteer's Backlog of Booked Business increased to US$24.9 billion at the end of June 2018, a 4.2% gain when compared with year-end 2017.
The strong financial results highlight Nexteer's ongoing execution and focus on delivering long-term profitable growth. In the first half of 2018, the company successfully launched eight major customer programs and continued global footprint expansion in support of both current and future customer growth. In the first half of 2018, Nexteer announced a new production facility groundbreaking in Morocco, extending the company's geographic reach to cost effectively support customer vehicle production launches in both Europe and Africa. Nexteer also announced a new driveline production facility in Queretaro, Mexico – marking the third production facility in this location.
In addition to expanding its operational footprint, Nexteer continued to deepen research and development in advanced safety and performance – particularly in ADAS and automated driving. This investment enables product technologies such as Steer by Wire, Steering on Demand™ System, Quiet Wheel™ Steering, Stowable Column, High Availability Electric Power Steering and other innovations. At the end of June 30, 2018, the company had 12 advanced technology contracts with key OEM customers to jointly develop ADAS Level 3 – 5 capabilities in high availability lateral directional control.
Nexteer views software & algorithm development, vehicle system integration and electronics innovation as key product differentiators in the steering domain. As customers advance future mobility objectives - they increasingly rely on Nexteer's proven expertise as a motion control specialist to support their efforts. During the first half of 2018 the company announced the opening of a new Software Centre in Bangalore, India to further strengthen the capability and bandwidth of the Company's global software development and validation activities.
Michael Richardson, board executive director and president of Nexteer Automotive, said, "We are pursuing a 2nd season of growth through technical innovation, portfolio enhancement and footprint expansion. This effort comprehends unique growth opportunities, now made possible through strategic Nexteer alliance partners."
Nexteer's highly engineered motion control solutions are integral to achieving safety and vehicle performance across varying levels of automated and mixed mode (manual and automated) driving. In the first half of 2018, Nexteer was honored by winning General Motors' prestigious Innovation Award for ADAS Level 5 technology. In the period, Nexteer received 9 awards around the globe for excellence in technology, manufacturing and quality from the industry and customers.
"Our strong financial performance for the first half of 2018 reflects Nexteer's continued emphasis on operational excellence. Further, we expanded our global footprint and made incremental investment in the depth and breadth of technical resources around the world. We believe the gains in our Backlog of Booked Business during the first half of 2018 reflect the competencies and innovative product solutions our Nexteer colleagues bring to our customers every day by demonstrating Nexteer capabilities as a Leader in Intuitive Motion Control," Mike Richardson said.
ABOUT NEXTEER
Nexteer Automotive (HK.1316), a global 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 automated driving enabling technologies for original equipment manufacturers. The company's global workforce of over 13,500 serves more than 50 customers in every major region of the world. The company has 25 manufacturing plants, three technical centers and 14 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, Fiat Chrysler, Ford, GM, PSA Group, Toyota and VW, as well as automakers in India and China. www.nexteer.com
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