Higher sales boost Rassini’s earnings 28% during first quarter
Mexican suspension and brake components manufacturer Rassini, S.A.B. de C.V. reported a strong performance during the first quarter ending March 31, 2017, with sales for 4,880 million Mexican pesos, approximately US$ 263.8 million at an 18.5 pesos per U.S. dollar exchange rate, which represented a 28% hike compared to same period of 2016.
Gross profit increased to nearly US$ 70.7 million (1,309 million pesos), a 25% increase against 2016, according to its unaudited financial results.
Earnings before interest, tax, depreciation and amortization (EBITDA) reached around US$ 54 million (998 million pesos), also a 28% growth, driven by higher sales, an enhanced product mix in the NAFTA region and a permanent control over the cost structure.
Rassini’s sales continued to grow in NAFTA based on increased demand for its products, market share gains for brake and suspension components and the start of production on new contracts awarded in previous years.
Rassini’s sales distribution between the two auto markets in which it operates is 92% in North America and 8% in Brazil. As of the end of the first quarter of 2017, suspension components represented 69% of product sales, while Brakes comprised the remaining 31%.
“We started 2017 with a solid, productive first quarter. Rassini is laser-focused on quality, reliability, innovation and sustainability, and as a result, we continue to build a strong reputation for these attributes across the industry and with our customers in particular. We were pleased to reinforce this with the additional recognition we received for Rassini’s sustainability efforts this quarter,” said Rassini’s CEO, Eugenio Madero, in the quarterly report.