Rassini’s net income increases 3% in 2017 limited by higher costs in North America
Rassini, a Mexican company engaged in the design and manufacture of suspension and brake components for the automotive industry, increased its earnings before taxes (EBITDA) by 1.8% in the fourth quarter of 2017, to US$ 43 million, compared to the same period in 2016. Net income totaled US$ 14 million, a 35% hike versus 2016.
According to its financial report sent to the Mexican Stock Exchange (BMV), the company led by Eugenio Madero saw its EBITDA increase limited due to higher costs in North America, although it posted better results in Brazil.
The company’s revenues between October and December of this year were US$ 231 million, an increase of 3.6% over the same period of 2016.
Full-year 2017 results showed a net income of US$ 75.6 million on sales of US$ 928.4 million, meaning increases of 3% and 11% respectively.
The company plans to invest US$ 60 million during 2018, mainly in production lines and development of new materials.
In a conference with analysts, Juan Pablo Sanchez, Rassini’s finance director, stressed that US$ 10 million will go to maintenance, while a similar figure will go to improvement of production lines. “We also expect strong investments related to the development of new materials, this would be around US$ 15 million,” he explained.
The executive stressed that Rassini invests between 5 and 7% of their income in research and development of auto parts, so they will continue with that line.
Rassini is the world’s largest producer of suspension components for light commercial vehicles, as well as the largest fully integrated brakes disc producer in the Americas. The company has eight manufacturing sites located in Mexico, U.S. and Brazil, as well as four tech centers located in the same countries.
Its customer base includes General Motors, Ford Motor Co., FCA, Nissan, Volkswagen, Toyota, MAN, Scania, Maserati, Mercedes Benz and Daimler among others.