Nexteer Reports Full Year 2023 Financial Results; Achieves Record Annual Revenue

News provided by

Mar 26, 2024, 07:00 ET

AUBURN HILLS, Mich., March 26, 2024 /PRNewswire/ -- Nexteer Automotive today reported annual results for its fiscal year ended December 31, 2023 – including a new company record of $4.2 billion in revenue. Nexteer's strong 2023 revenue performance outpaced the market despite ongoing challenges which intensified pressure on the company's profitability, including supply chain disruptions, ongoing inflation and lingering economic impacts, as well as the 2023 United Autoworkers (UAW) strike in the US resulting in OEMs' production schedule shifts.

In 2023, the company successfully launched a record 55 customer programs globally, secured US$6.1 billion of customer program awards (bookings) and continued its commitment to technology leadership and megatrend alignment to capitalize on growth opportunities.

"For the first time in our company's history, Nexteer crossed over $4 billion in annual revenue – marking another period of year-over-year revenue growth that continues to outpace the market as measured by the change in global OEM unit production," said Zili Lei, Chairman of the Board, Chief Executive Officer and Executive Board Director, Nexteer Automotive. "In 2023, Nexteer also achieved record growth in the Asia Pacific region – surpassing $1.2 billion in revenue. We continue to seize tremendous growth opportunities in Asia Pacific by securing new business with leading global and Chinese domestic automakers."

Full Year 2023 Financial Results
Nexteer reported record 2023 revenue of US$4.2 billion which represented a 9.6% increase when compared with 2022. Adjusting for foreign currency and customer commodity recoveries, the company's revenue increased by 11.1%, outperforming the increase in global OEM vehicle production by 1.7% or 170 basis points. Nexteer reported full year 2023 operating profit of US$61.4 million and net profit attributable to equity holders of 2023 was US$36.7 million. While revenue growth remained strong, inflationary and supply chain pressures reduced the company's profit when compared to 2022.

$6.1B in Customer Program Bookings
In 2023, Nexteer achieved new bookings of US$6.1 billion – of which 41% represented new or competitor conquest programs and 20% represented programs with Chinese OEMs. Some of the company's 2023 bookings highlights included the company's first stand-alone software program with a leading, global OEM; second Steer-by-Wire (SbW) program with a leading, global OEM; first electric power steering (EPS) program with a global EV leader headquartered in North America; and continued bookings and aggressive growth plan with Chinese new energy vehicle (NEV) OEMs.

55 Successful Customer Program Launches
In 2023, Nexteer further expanded and diversified its reach across OEM customers, regions and product technologies with 55 customer program launches during the year. Of these customer programs, 53 represented new or conquest business, 34 represented EV launches and 39 were launched in Asia Pacific.

FORWARD-LOOKING STATEMENTS
Any forward-looking statements and opinions contained within this press release are based on current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions. Nexteer Automotive and its directors and employees assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this press release; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialize or turn out to be incorrect.

About Nexteer Automotive
Nexteer Automotive (HK 1316) is a global leading motion control technology company accelerating mobility to be safe, green and exciting. Our innovative product and technology portfolio includes electric and hydraulic power steering systems, steer-by-wire systems, steering columns and intermediate shafts, driveline systems and software solutions. The company solves motion control challenges across all megatrends – including electrification, software/connectivity, ADAS/automated driving and shared mobility – for more than 60 customers around the world including BMW, Ford, GM, RNM, Stellantis, Toyota and VW, as well as automakers in India and China including BYD, Chery, Great Wall, Geely, Xpeng and others. www.nexteer.com