Nexteer’s net profit up 20% boosted by launch of new products, operating efficiency
Nexteer Automotive, a manufacturer of steering and driveline, reported a net profit of US$ 179.7 million for the six-month period ended June 30, 2017, an increase of 20.7% over the same period in 2016, as a result of successful launch of new programs, improved product line mix, improved operating efficiency and cost competitiveness, said the company in its first half 2017 report.
The Michigan-based company with two manufacturing plants in Juarez and three in Queretaro reported total revenue of US$ 1.97 billion, an increase of 2.6% over the same period in 2016. Gross profit reached US$ 371.5 million, an increase of 11.1% over the same period in 2016 while the company’s backlog of booked business was US$ 24.0 billion as at June 30, 2017.
The strong financial results highlight Nexteer’s continued focus on delivering long-term profitable growth. In the first half of 2017, the company launched of 15 new product applications across multiple regions and customers, including 4 in North America, 9 in Asia-Pacific, and 2 in Europe and South America. These new programs include two major product lines: electric power steering and driveline
In the first half of 2017, the company made two significant announcements related to ADAS and Automated Driving with the introduction of new product offerings leveraging its steer-by-wire technology, Nexteer Steering on Demand™ System and Nexteer Quiet Wheel™ Steering.
Nexteer also announced its intent to form a joint arrangement with Continental Automotive Systems, Inc. focused on the advancement of motion control systems and actuator components for automated driving. Separately, the company also formed a joint venture with Dongfeng Motor Parts and Components Group Co., Ltd. in China for expanded business opportunities in the Asia-Pacific region.
Michael Richardson, board executive director and president of Nexteer Automotive said, “Through careful expansion of our global footprint, strategic alliances, product diversity and program launches in our major product areas, Nexteer is on track to maintain long-term profitable growth.”
Guibin Zhao, Chairman and CEO of Nexteer Automotive said, “The company’s interim results provide tangible evidence that our global team’s commitment to improving operational efficiency and bolstering Nexteer’s position as ‘A Leader in Intuitive Motion Control’. Through unceasing innovation and exploring emerging product opportunities, we will continue to refine our business model and secure competitive market advantages.”