Nexteer Automotive net profit hikes 11% during first half of 2018
Michigan-based steering and driveline products manufacturer Nexteer Automotive reported a US$ 2.047 billion revenue for the six-month period ended June 30, 2018, an increase of 3.7% when compared with the same period of 2017. Net profit of the subsidiary of Chinese group Pacific Century Motors totaled US$ 200 million, an 11.1% hike when compared with the same period of 2017.
The company generated free cash flow of US$ 183 million during the first half of 2018, “reflecting a continued focus on operational efficiency and capital investment discipline,” said the company at the presentation of its first half 2018 financial results. Nexteer’s Backlog of Booked Business increased to US$ 24.9 billion at the end of June 2018, a 4.2% gain when compared with year-end 2017.
In the first half of 2018, the company successfully launched eight major customer programs and continued global footprint expansion in support of both current and future customer growth, including a new driveline production facility in Queretaro, Central Mexico, marking the third production facility in this location.
In addition to expanding its operational footprint, Nexteer continued to deepen research and development in advanced safety and performance – particularly in advanced driver-assistance systems (ADAS) and automated driving.
This investment enables product technologies such as Steer by Wire, Steering on Demand System, Quiet Wheel Steering, Stowable Column, High Availability Electric Power Steering and other innovations.
At the end of June 30, 2018, the company had 12 advanced technology contracts with key OEM customers to jointly develop ADAS Level 3 – 5 capabilities in high availability lateral directional control.
Nexteer operates five plants in Mexico, two in Ciudad Juarez, Chihuahua and three in Queretaro from where it supplies products for General Motors, Ford, Mazda and Honda.
Worldwide the company has 25 manufacturing plants, three technical centers and 14 customer service centers strategically located in North and South America, Europe and Asia. Its global customer portfolio includes BMW, Fiat Chrysler, Ford, GM, PSA Group, Toyota and VW, as well as automakers in India and China.