Nexteer Reports First Half 2019 Financial Results And Achieves Backlog Of $25.6 Billion

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Aug 13, 2019, 06:45 ET

AUBURN HILLS, Mich., Aug. 13, 2019 /PRNewswire/ -- Nexteer Automotive, a leader in intuitive motion control, reported financial results for the six-month period ended June 30, 2019, including revenue of US$1.832 billion and net profit attributable to equity holders of US$131 million. Nexteer's Backlog of Booked Business increased to US$25.6 billion at the end of June 2019, a 1.6% increase when compared with year-end 2018.

Nexteer faced a number of macro-environmental challenges during the first half of 2019, including slowing OEM light vehicle production in every served region and unfavorable foreign currency translation compared with the same period in 2018. The decline in China OEM light vehicle production of 13.5% and a North America customer vehicle platform transition impacting revenue derived from the Company's Steering Column product line were the most significant factors driving lower revenue in the first half of 2019 compared with the same period a year ago.

"Although industry dynamics provided a net headwind to Nexteer's financial performance in the first half of 2019, we continued to build upon the foundational pillars of our business – value-focused product design and development, expansion of our footprint and the continued drive for operational excellence in everything we do," said Guibin Zhao, Nexteer Automotive CEO. "We remain focused on executing our strategy for profitable growth, and the results of our efforts are being recognized by our customers as evidenced by a growing Backlog in an extremely competitive environment."

In the first half of 2019, Nexteer continued its focus on operational excellence with the successful launch of 21 new customer vehicle programs across multiple product lines and regions – including nine programs in North America, 10 in Asia Pacific and two in Europe, Middle East, Africa & South America.

Nexteer also continued expansion and diversification of its global footprint in regions strategically important to key customers – including the opening and launch of Nexteer's India Software Center to further support downstream software production and validation, the grand opening of the Company's first production facility in Africa in Kenitra, Morocco, and new production facilities in Chennai, India and Liuzhou, China.

By focusing on execution and innovation while comprehending megatrends, such as electrification and new mobility opportunities, Nexteer continues to demonstrate its strength as a technology leader. In the first half of 2019, the Company enhanced its global strategic software business model and showcased its diverse electric power steering (EPS) leadership through production milestones, including production of Nexteer's 60 millionth EPS system globally. Nexteer also continued to collaborate with OEM customers and industry peers to advance innovations for motion control solutions and drive business growth in automotive and new mobility applications.

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 (OEMs). The company has 27 manufacturing plants, three technical centers and 14 customer service centers strategically located in North and South America, Europe, Asia and Africa. The company serves more than 60 customers in every major region of the world including BMW, Fiat Chrysler, Ford, GM, PSA Groupe, Toyota and VW, as well as automakers in India and China. www.nexteer.com

SOURCE Nexteer Automotive