- Continued global demand for fuel efficient steering driving business
Nexteer Automotive, a tier one automotive supplier committed exclusively to wheel-to-wheel advanced steering and driveline systems, today reported financial results for its fiscal year ended Dec. 31, 2013.
Fiscal 2013 Highlights:
• Revenue increased by approximately 10.1 percent to US $2,386.8 million, up from US $2,167.8 million from 2012
• Gross profit increased by approximately 25.1 percent to US $339.4 million, up from US $271.4 million from 2012
• Profit attributable to equity holders of Nexteer increased by approximately 91.2 percent to US $109.2 million, up from US $57.1 million in 2012
Guibin Zhao, chairman and CEO of Nexteer Automotive said, “we plan to strengthen our business in North America, grow in Europe and expand our business in developing markets, including China, by offering steering and driveline products that are specifically tailored to different markets’ product performance and price requirements. In addition, we plan to build upon existing relationships with global and local original equipment manufacturers in these markets. We may also pursue selected strategic acquisitions and alliances globally, including those in developing markets. We plan to expand our manufacturing plants in certain countries, such as China, to increase our production capacity. We believe that by offering tailored products, building upon existing relationships, pursuing strategic acquisitions and alliances and expanding our manufacturing plants, our brand recognition and revenue in developing markets will continue to grow.”
Operating Environment:
• Strong revenue growth generated from previously booked business
• Improved product line mix (movement from hydraulic power steering (HPS) to electric power steering (EPS))
• Improved geographic mix
• Cost efficiency initiatives
Nexteer experienced strong global demand from its customers throughout 2013 for the company’s industry-leading electric power steering systems as they look to improve fuel efficiency in their vehicles. The automotive industry experienced an increase in global light vehicle production, which was up 3.6 percent in 2013 over 2012 (84.47 million units vs. 81.51 million units). Driven by increased demand for vehicle ownership, China light vehicle production was at 21.15 million units in 2013, up 13 percent or 2.58 million over the 18.57 units produced in 2012. North America recorded its fourth consecutive year of growth in 2013 with 16.18 million units, an increase of 4.9 percent, or 750,000 units, over the 15.43 million level achieved in 2012. Europe production remained stable in 2013 at 19.33 million units, an increase of 0.2 percent over 2012 levels of 19.30 million units.
“Nexteer offers the broadest steering portfolio in the market, a portfolio capable of steering everything from compact sedans to full-size trucks with our efficient 12-volt electric power steering,” said Laurent Bresson, president and chief operating officer of Nexteer Automotive. “This portfolio, coupled with our strong global footprint and focus on technology has allowed us to continue to secure new customer contracts, expand globally and deliver the financial results our shareholders expect from us.”
