Nexteer Reports Full Year 2021 Financial Results

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Mar 16, 2022, 06:30 ET

AUBURN HILLS, Mich., March 16, 2022 /PRNewswire/ -- Nexteer Automotive today reported annual results for its fiscal year ended December 31, 2021. Although 2021 provided another challenging operating environment resulting from the ongoing global pandemic which brought unprecedented supply chain constraints and inflationary pressures to the automotive industry broadly, Nexteer continued to execute its long-term strategy for profitable growth including further customer diversification and product expansion aligned with industry mega trends. While navigating the significant environmental challenges of 2021, Nexteer continued to successfully launch new customer programs driving revenue growth in excess of market, secured another strong year of customer program awards (Bookings) and achieved a record-setting Backlog of Booked Business.

"In 2021, we remained committed to our strategy for profitable growth and continued expanding and diversifying our revenue base. Our proven strategy served as a guide in navigating 2021's challenges including the global semiconductor supply shortage, commodity inflation, logistics challenges and continuing COVID-19 impact," said Guibin Zhao, CEO of Nexteer Automotive.

Full Year 2021 Financial Results
Nexteer reported 2021 revenue of US$3.359 billion which represented a 10.8% increase when compared with 2020. Adjusting for foreign currency and customer commodity recoveries, the Company's revenue increased by 7.2%, outperforming the increase in global OEM vehicle production of 2.5% by 470 basis points. This strong growth in excess of market reflected the favorable impact of current and carry-over conquest customer program launches and favorable vehicle mix.

Nexteer 2021 financial performance was significantly impacted by the various cost headwinds and customer production and operating challenges experienced across the broader automotive supply chain. Nexteer reported full year 2021 operating profit of US$115.2 million and net profit attributable to equity holders of 2021 was US$118.4 million, which was 1.4% higher when compared with a year ago.

36 Successful New Customer Program Launches
In 2021, Nexteer further expanded and diversified its reach across OEM customers, regions and product technologies with 36 customer program launches during the year. Of these customer programs, 32 represented new or conquest business and 15 represented EV launches.

"We had a strong year of customer Bookings and accomplished several notable successes – including breakthrough steering wins with a Japanese OEM, a segment leader in the utility and all-terrain vehicle field, a major global EV leader and multiple NEV startups in China. Going forward, Nexteer remains focused on where the industry is heading through strategic alignment on the industry megatrends – such as Electrification and Software," said Zhao.

Bookings and Backlog
In 2021, Nexteer achieved new customer program awards (Bookings) of $5.9 billion – of which 28% represented conquests from competitors, including breakthrough steering wins. Nexteer's Backlog of Booked Business stood at US$26.8 billion at the end of 2021 – a new record for Nexteer – of which 25% supports EV programs.

Product Expansion & Mega Trends: Electrification & Software
Nexteer remains focused on technology leadership and megatrend alignment for future growth. To that end, the Company announced today a new eDrive product line with the launch of a 48-volt Integrated Belt-Driven Starter Generator (iBSG) that enables hybrid versions of conventional internal combustion engines (ICE). This launch creates a foundation and entry point for the Company's exploration into additional eDrive applications and customer expansion.

In addition to eDrive, Nexteer along with its partner, Tactile Mobility, announced a new software product for Advanced Road Surface Detection and Tire Health Monitoring to improve vehicle health management, safety and performance.

In 2021, the Company earned the Automotive News PACEpilot "Innovation to Watch" Award for Steer-by-Wire with Stowable Column as well as Brake-to-Steer via Nexteer's joint venture with Continental; as well as Consumer Electronics Show (CES) Innovation Awards for Automated Steering Actuator for steering autonomous people movers plus Steer-by-Wire with Stowable Steering Column.

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, eDrive as well as software solutions. Nexteer's product portfolio supports mobility mega trends including electrification, software, ADAS, automation and more for original equipment manufacturers (OEMs). The company has 26 manufacturing plants, four technical and software centers and 13 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, Ford, GM, Stellantis, Toyota and VW, as well as automakers in India and China. www.nexteer.com

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SOURCE Nexteer Automotive