Nexteer posts strong 2017 results amid global expansion, including a new plant in Mexico
Nexteer Automotive reported strong financial results for its fiscal year ended December 31, 2017, amid the successful launch of new programs and the expansion of its global footprint, including a new manufacturing facility in Mexico.
With total revenue reaching US$ 3.87 billion, the company saw an increase of 1% when compared to that of 2016. Meanwhile, its operating profit of US$ 428 million represented an increase of 3.1% when compared with 2016. All that summed up a net profit of US$ 352 million, for a 19.4% hike when compared with 2016.
The Chinese-owned, Michigan-based manufacturer of steering and driveline products also generated total cash flow of US$ 99 million, reflecting strong cash generated from operations, continued capital investment discipline and funding of debt service and shareholder returns. Nexteer’s backlog stood at US$ 23.9 billion at the end of 2017.
In 2017, Nexteer successfully launched 32 major customer programs while expanding its global footprint to support future growth. The company continued to expand in regions of strategic importance to its diverse customer base, opening three new production facilities in Brazil, Mexico and Indonesia and a customer service center in Japan. It also announced two facility groundbreakings in China in 2017 – a new technical center in Suzhou, China and a new production facility in Liuzhou, China.
The new Mexican plant is a 9,290 square-meter facility located in Ciudad Juarez, which started operations in late 2017. It will house 120 work stations in the coming years with plans to produce more than 2.5 million steering columns and 1.4 million intermediate arrows per year once fully operational.
With the new site, the manufacturer now 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.
The company also announced several strategic joint ventures and partnerships in 2017, including CNXMotion, WABCO and Dongfeng Components.
CNXMotion is an R&D joint venture with Continental Automotive, dedicated to integrating advanced steering and braking technologies for autonomous vehicle applications. Also, Nexteer and WABCO announced a partnership in which WABCO will supply active steering systems for commercial vehicles using Nexteer’s Magnetic Torque Overlay (MTO) technology. Meanwhile, Nexteer and Dongfeng Components announced a 50:50 joint venture for the manufacture of automotive steering systems.
In addition to expanding partnerships, Nexteer continued to broaden its comprehensive suite of advanced technologies enabling vehicle autonomy, including Steer-by-Wire, Steering on Demand System, Quiet Wheel Steering, Stowable Column, High Availability Electric Power Steering, MTO and Cyber-Secure Advanced Steering technologies.
“Our accomplishments during 2017 reflect the ongoing dedication of our global team driving Nexteer’s position as a leader in intuitive motion control. We are confident that our relentless innovation along with our strong and aligned capabilities from the design and development of advanced technologies to world-class manufacturing, will continue to differentiate Nexteer as we solve motion control challenges for current and future mobility,” Guibin Zhao, chairman and CEO of Nexteer Automotive, said in a statement.