Nexteer announced record financial performance for 2016 with Revenue increasing by 14%, Gross Profit increasing by 21%, and Net Profit increasing by 44% when compared with 2015. Nexteer's Business Backlog of U.S.$25.6 billion at the end of 2016 remained strong securing future revenue growth.
AUBURN HILLS, Mich., March 14, 2017 /CNW/ -- Nexteer Automotive, a global leader in intuitive motion control, today reported financial results for its fiscal year ended Dec. 31, 2016, with revenue reaching U.S. $3.842 billion, an increase of 14% compared with 2015; gross profit of U.S. $662, an increase of 21% when compared with 2015; and net profit of U.S. $295 million, an increase of 44% when compared with 2015. At the end of 2016, the company achieved a business backlog of U.S. $25.6 billion.
Nexteer's 2016 results highlight continued focus on delivering long-term profitable growth. The company successfully launched 33 new customer programs while expanding its global footprint to support business growth. Nexteer opened 2 new manufacturing plants in Asia Pacific and a new manufacturing plant in South America in direct response to market opportunities and new customer program awards. Customer service capabilities were also enhanced through the establishment of a new technical center in Poland and expansion of a current technical center in China. In addition, Nexteer opened a new world headquarters in Auburn Hills, Michigan providing a relevant platform for increased industry presence and expanded access to technical talent.
The company announced a technical collaboration with Continental Automotive Systems at the 2017 North American International Auto Show, centered on the establishment of a research and development center to develop motion control systems and actuator components for automated driving. Nexteer also solidified engagement with key global customers to collaboratively develop ADAS functionality, further strengthening a leadership position in the delivery of intuitive motion control.
Robust industry production, improved markets in North America, China and Europe, and the benefit from new customer program launches led to increased volume, which advanced Nexteer's strong financial position. Continued effort to advance operational excellence, operating efficiency, cost competitiveness and product quality brought a broad range of industry recognitions. These milestone events provide tangible evidence of progress made in product performance, quality and business growth. The business backlog remains strong at U.S. $25.6 billion at the end of 2016.
Michael Richardson, board executive director and president of Nexteer Automotive said, "With an expanding product portfolio, competitive global footprint and significant customer program launches, we have demonstrated robust growth in both top line and earnings."
Guibin Zhao, Chairman and CEO of Nexteer Automotive said, "I would like to express my sincere appreciation for our global team's effort, dedication and excellent performance in securing our position as 'A Leader in Intuitive Motion Control'. We will continue to refine our business model, break through constraints and explore ADAS technology and product opportunities to secure Nexteer's competitive advantage in market growth."
Nexteer Automotive (HK 1316) – A Leader in Intuitive Motion Control – is a multi-billion-dollar global steering and driveline business delivering electric and hydraulic power steering systems, steering columns, driveline systems as well as advanced driver assistance systems (ADAS) and automated driving technologies for original equipment manufacturers. The company's global workforce of over 13,000 serves more than 50 customers in every major region of the world. The company has 24 manufacturing plants, five regional engineering centers and 11 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, Fiat Chrysler, Ford, GM, PSA Group, Toyota and VW, as well as automakers in India and China. www.nexteer.com
SOURCE Nexteer Automotive
For further information: Luis Canales, Nexteer Automotive, 248-340-8254 (office), [email protected]