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Nexteer Automotive Reports First Half 2015 Interim Financial Results
- Increased revenue to US$1.6 billion, up by approximately 14.5% year-over-year
- Expanded new business backlog to US$11.5 billion
- Generated positive free cash flow
SAGINAW, Mich., Aug 30, 2015 - (ACN Newswire) - Nexteer Automotive, a global leader in intuitive motion control, is pleased to announce its unaudited interim results for the six months ended June 30, 2015.
First Half 2015 Highlights:
- Revenue increased by approximately 14.5% to US$1,642.3 million
- Gross profit increased by approximately 24.7% to US$254.8 million
- Profit attributable to equity holders of the Company increased by approximately 19.3% to US$96.5 million
- New business backlog grew to US$11.5 billion as of June 30, 2015
- Achieved positive free cash flow of US$56 million
"Nexteer delivered solid results in the first half of 2015, advancing its strong financial position and building a foundation for continued success," said Guibin Zhao, chairman and CEO of Nexteer Automotive. "Robust industry production and improved market dynamics in North America, China, and Europe drove strong customer demand and increased volume. The ongoing adoption and conversion to electric power steering, as well as the Company's increased exposure in China through new program launches and enhanced production capabilities, ideally position Nexteer for continued growth in 2015 and beyond."
"During the first half of 2015, Nexteer successfully launched new production of awarded customer programs across multiple product segments, regions and customers," said Laurent Bresson, president and chief operating officer of Nexteer Automotive. "The Company continues to invest in research and development to strengthen its leadership position, but also remains focused on continuous improvement in operating efficiency and cost competitiveness in order to drive profitable growth and strong cash flow."
Financial Summary:
Revenue for the six months ended June 30, 2015 was US$1,642.3 million, an increase of US$207.9 million or a 14.5% increase from the six months ended June 30, 2014 of US$1,434.4 million. Revenue growth was driven by strength in the North America and China markets, the launch of new customer programs, and continued customer conversion to EPS. Revenue was negatively impacted by US$43.0 million of foreign exchange. Revenue would have increased an additional 3% from the six months ended June 30, 2014 excluding the foreign exchange impact.
Gross profit for the six months ended June 30, 2015 was US$254.8 million, an increase of US$50.4 million or 24.7% from US$204.4 million for the six months ended June 30, 2014. Gross margin for the six months ended June 30, 2015 was 15.5%, a 1.3% increase from 14.2% for the six months ended June 30, 2014. The increase in the gross profit was attributed to increased revenue, continued rotation to EPS, and cost improvement initiatives. This was partially offset by unfavorable foreign exchange, depreciation on property, plant and equipment, and amortisation of capitalised product development costs.
Profit attributable to equity holders of the Company for the six months ended June 30, 2015 was US$96.5 million or 5.9% of total revenue, an increase of 19.3% compared to the six months ended June 30, 2014 of US$80.9 million or 5.6% of total revenue.
For the six months ended June 30, 2015, net cash generated from operating activities was US$188.1 million, an increase of US$111.9 million compared to six months ended June 30, 2014 of US$76.2 million. The increase in cash flows from operating activities is primarily due to increased earnings. This was partially offset by increased demands for working capital driven by higher sales volumes. For the six months ended June 30, 2015, Nexteer invested US$80.4 million and US$54.4 million in capital equipment and engineering product development, respectively. The Company was free cash flow positive for the period ended June 30, 2015.
As of June 30, 2015, Nexteer secured new contracts for a number of customer programs which are expected to begin production starting in the second half of 2015. As of June 30, 2015, the Company estimates the value of all booked business under contracts that have been awarded, but which have not yet begun production amounts to approximately US$11.5 billion over the lifetime of the relevant vehicle programs.
Nexteer's interim results are discussed in further detail in the Company's interim results announcement for the six months ended June 30, 2015 which is available on the Investors section of the Company's website, www.nexteer.com/investor-center.
ABOUT NEXTEER AUTOMOTIVE GROUP LIMITED
Nexteer Automotive Group Limited ("Nexteer" or the "Company", HKSe: 1316) is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers. The company is listed on the Hong Kong Stock Exchange. Its 12,000 workforce serves more than 50 customers in every major region of the world. The company has 21 manufacturing plants, five regional engineering centers and ten customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, Fiat Chrysler, Ford, GM, PSA Peugeot Citroen, Toyota, and VW, as well as automakers in India and China. www.nexteer.com
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