Michigan-based Gentherm posts record revenues boosted in part by recent acquisition
Michigan-based Gentherm, a developer and manufacturer of thermal management technologies, reached record revenues of US$ 257.2 million during the fourth quarter of 2017, up 8.7% compared to same period of previous year. However, US$ 8.4 million in revenues came from its recent acquisition of control systems manufacturer Etratech, Canada-based company it acquired last year for US$ 64 million in an all cash transaction.
Product revenues on a comparable basis, excluding the impact of acquisitions and foreign currency translation, rose 4.1% year over year.
The company’s operating profit fell to US$ 21.1 million from US$ 26.5 million in the 2016 fourth quarter, largely reflective of increased investment in research and development to drive accelerated revenue growth and CEO transition expenses.
Full-year 2017 product revenues also reached a record of US$ 985.7 million, up 7.4% from the US$ 917.6 million in 2016. Product revenues on a comparable basis, excluding the impact of acquisitions and foreign currency translation, rose 4.6% year over year.
Operating profit in 2017 totaled US$ 97.3 million, down from US$ 106.1 million in 2016, reflective of US$ 9.6 million in increased research and development expense as well as higher selling, general and administrative costs related to the full-year impact of acquired companies.
Gentherm operates three manufacturing facilities in Mexico, two of those are located in Acuna, Coahuila, one in Celaya, Guanajuato. All three facilities are dedicated to manufacturing of thermal solutions for the automotive industry.
The company recently announced that its products has been selected for a next generation Mercedes-Benz car line in the upper or luxury segment. This award represents Gentherm’s first advanced seat comfort system program with a major premium luxury German brand.