Nexteer announced financial performance for 2017 with Revenue increasing by 1%, Operating Profit increasing by 3.1%, and Net Profit increasing by 19.4% when compared with 2016. Nexteer also generated significant cash flow in 2017 providing a strong balance sheet to support continued investment in the company's on-going growth initiatives.
AUBURN HILLS, Mich., March 13, 2018 /CNW/ -- Nexteer Automotive, today reported financial results for its fiscal year ended December 31, 2017, with revenue reaching U.S. $3.878 billion, an increase of 1% when compared with 2016; operating profit of U.S. $428 million, an increase of 3.1% when compared with 2016; and net profit of U.S. $352 million, an increase of 19.4% when compared with 2016. The Company also generated total cash flow of $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 U.S. $23.9 billion at the end of 2017.
Nexteer's 2017 results highlight ongoing execution and focus on delivering long-term profitable growth. The company successfully launched 32 major customer programs while expanding its global footprint to support future growth. Nexteer 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. Nexteer 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 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. 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. 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.
As part of the efforts to improve product quality and performance, build enterprise value and optimize productivity, Nexteer launched Digital Trace™ Manufacturing: One of the most advanced, holistic and integrative approaches to streamlining design and manufacturing in the automotive industry. Ongoing efforts in operating efficiencies and cost reduction actions continued to drive Nexteer's earnings and margin performance in 2017 in a mostly stable OEM production environment.
"Our strong financial performance in 2017 reflects Nexteer's continued emphasis on operational excellence while also expanding our global breadth and technical capabilities. We remain focused on improving operational efficiency and growing an increasingly diversified customer base," Michael Richardson, board executive director and president of Nexteer Automotive, said.
"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.
Nexteer Automotive (HK 1316), a global 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 has 24 manufacturing plants, three technical centers and 14 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive serves more than 50 customers in every major region of the world including 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: Lynn Pavlawk, Nexteer Automotive, Office: 248.340.8254, [email protected]