Nexteer Automotive Reports Fiscal 2014 Results

Technological leadership in electric power steering continues to drive global growth and customer diversification

News provided by

Mar 12, 2015, 07:30 ET

SAGINAW, Mich., March 12, 2015 /PRNewswire/ -- Nexteer Automotive, a global 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, 2014.

Laurent Bresson, president and global COO of Nexteer Automotive said, "Our strong financial performance is a result of Nexteer's commitment to innovation, continued globalization efforts and unrivaled technology and product portfolio. Nexteer's strengthened market position has allowed the company to diversify its customer base and grow in every major region of the world."

Fiscal 2014 Highlights:

Revenue increased by approximately 24.8 percent to U.S. $2,978.1 million, up from U.S. $2,386.8 million from 2013
Gross profit increased by approximately 23.7 percent to U.S. $420.0 million, up from U.S $339.4 million from 2013
Profit attributable to equity holders of Nexteer increased by approximately 47.8 percent to U.S. $161.4 million, up from U.S. $109.2 million in 2013
Maintained strong backlog of booked business at approximately U.S. $9 billion

Nexteer's 2014 profit was higher than what was forecasted mainly due to an increase in revenue from new program launches related to previously booked business of 2014.

Operating Environment:

An increase in revenue from new program launches related to previously booked business
Strong automobile industry production resulting in higher demand for Nexteer's products
Continued rotation of Nexteer's portfolio electric power steering
Enterprise focus on cost and operational efficiency

Consistent with Nexteer's business plan, the company was successful in driving significant improvements to its financial condition in 2014. The initial offering and listing of the company's shares in 2013 on the Hong Kong Stock Exchange provided incremental liquidity to use in capital spending for new programs, additional research and development expenditures, and working capital. In 2014, the issuance of senior notes and the refinancing of the North American borrowings further solidified Nexteer's capital structure, providing strong liquidity and capital for growth. Nexteer's strong top line growth and focus on operational efficiency, coupled with a strong automotive market, continues to drive earnings accretion.

Guibin Zhao, chairman and CEO of Nexteer Automotive said, "Technology is the competitive advantage that drives opportunity for Nexteer. The integration of advanced driver assist functionality into our systems is key to providing sustainable solutions that customers increasingly require. Our capital structure enables us to consider targeted acquisitions and alliances appropriate for our business. This is an enormous benefit as we look to develop collaborative strategies to continue to grow the enterprise globally."

ABOUT NEXTEER
Nexteer Automotive (HK:1316) is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers. The company is listed on the Hong Kong Stock Exchange. Its 11,000 workforce serves more than 50 customers in every major region of the world. The company has 20 manufacturing plants, five regional engineering centers and nine customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, FCA, Ford, GM, Toyota, and PSA Peugeot Citroen, VW, as well as automakers in India, China, and South America. www.nexteer.com

SOURCE Nexteer Automotive