Rassini, S.A.B. de C.V., a Mexican developer and manufacturer of suspension and brake components for the automotive industry, reported third quarter sales of 4,224 million Mexican pesos (MXN), around US$ 220.7 million, and total net revenue of MXN 13,593 million (US$ 710.2 million) in the first nine months of 2017, meaning growths of 1% and 13% respectively, amid 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.
Net income, however, decreased 2% to US$ 62.85 million in the first nine months of 2017, and 13% to US$ 17 million during the third quarter, according to its unaudited financial results.
The company supplied a temporary extraordinary contract during 2016 and the first half of 2017, excluding it from the base, the consolidated sales growth would have been 19% for the first nine months and 9% for the third quarter of 2017 compared to the same periods of 2016.
Rassini’s sales distribution between the two auto markets in which it operates is 90% in North America and 10% in Brazil. As of the end of the first nine months of 2017, suspension components represented 69% of product sales, while brakes comprised the remaining 31%.
The auto supplier saw a 11% rise in total NAFTA sales during the first nine months, driven by a favorable product mix, continued strength in the automotive industry, as well as increases in new contracts within the Suspensions and Brakes divisions.
Volume in the NAFTA region reflects an increase of 5% in the Brakes Division and 6% in the Suspension Division, which excludes the extraordinary contract. This growth was supported by the consumer demand of light trucks and the launch of new business contracts in both segments.
Focused on innovation to meet the evolving demands of the industry, Rassini currently develops a new leaf spring which will reduce the spring’s weight between 50% to 60%. The program is expected to be completed by 2021, but the company has already achieved a 30% weight reduction in the leaf spring which will be equipped in the next generation of pickup trucks.