FINANCIAL HIGHLIGHTS
- Revenue increased by approximately 23.1% to US$1,434.4 million (Six months ended June 30, 2013: US$1,164.8 million)
- Gross Profit increased by approximately 20.1% to US$204.4 million (Six months ended June 30, 2013: US$170.2 million)
- Profit attributable to equity holders of the Company increased by approximately 39.1% to US$80.9 million (Six months ended June 30, 2013: US$58.2 million)
The board of directors of Nexteer Automotive Group Limited (“Nexteer” or the “Company”, SEHK stock code: 01316), announced today the unaudited condensed consolidated interim results of the Company and its subsidiaries (the ‘‘Group’’) for the six months ended June 30, 2014 together with the comparative figures for the six months ended June 30, 2013 (the “Previous Period”).
FINANCIAL REVIEW
Consistent with company’s strategic plan, the group is pleased to report a substantially improved financial position with its filing of its 2014 first half results ending June 30, by capitalizing on strong market conditions as well as a continued focus on cost optimization. Additionally, the Group continued its commitment to capital expenditure as well as research and development in order to capture growth opportunities.
The Group’s revenue for the six months ended June 30, 2014 was US$1,434.4 million, a 23.1% increase from the Previous Period of US$1,164.8 million. The Group’s gross profit for the six months ended June 30, 2014 was US$204.4 million, an increase of US$34.2 million from US$170.2 million for the Previous Period. The Group’s profit attributable to equity holders of the Company for the six months ended June 30, 2014 was US$80.9 million, an increase of US$22.7 million from US$58.2 million for the Previous Period.
AUTOMOTIVE MARKET OVERVIEW
The growing global automotive market continues to drive demand in steering and driveline systems. Global light vehicle production increased by 3.8% from the Previous Period to 44.0 million units for the six months ended June 30, 2014, achieving a high new record in this segment. Driven by continued increasing demand for vehicle ownership, China light vehicle production was at 11.3 million units for the six months ended June 30, 2014, an increase of 9.7% compared to the Previous Period. North America recorded the fourth consecutive period of growth for the six months ended June 30, 2014 with 8.6 million units, an increase of 3.6% from the Previous Period. Europe production showed improvement over the previous year, as of June 30, 2014 at 10.4 million units, an increase of 4.0% from the Previous Period.
FUTURE PROSPECTS
The Group plans to strengthen the business in North America, grow in Europe and expands business in developing markets, including China, by diversifying steering and driveline products that are customized for different markets’ performance and price requirements. In addition, the Group plans to build upon existing relationships with global and local original equipment manufacturers in these markets. The Group may also pursue global strategic acquisitions and alliances. The Company also plans to expand manufacturing plants in certain countries, such as China, to increase production capacity.
