Gestamp has recorded 2019 net income down 17.6% to EUR212m (US$234m), while revenue grew 6.3% to EUR9.1bn.
The Spanish supplier says it outperformed the market in all of its regions “despite a challenging year.”
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Eastern Europe reached EUR1.38bn a 20.4% growth rate at constant FX. NAFTA amounted to EUR1.98bn, a 13% growth rate at constant FX.
During the period, Asia reached EUR1.1bn, an 11.2% growth rate at constant FX. Mercosur amounted to EUR656m with a growth rate of 28.1% at constant FX. Western Europe decreased to EUR3.9bn or -4.7% at constant FX.
“The year ended has been undoubtedly challenging for the automotive sector,” said Gestamp CEO, Francisco López Peña. “Despite these uncertainties, Gestamp has continued to outperform the market in revenue and EBITDA, achieving its revised 2019 full year targets.
“Auto production environment has evolved negatively over the last two years. In the short term, we are focused in investment control, labour cost flexibility and free cash flow generation.
“Gestamp is prepared to deliver sustainable development and performance and to achieve it lightweight solutions will continue to be key with heightened focus on CO2 emission and increasing EVs penetration.”
Gestamp has updated its current situation in China, where ten out of 11 plants are in progressive start-up after the extended holiday shutdown. Gestamp’s plant in Wuhan is closed and is dependent on instructions from the Chinese Government. There are no confirmed or suspected infected employees.
Operations of Gestamp in China represent EUR847m in revenue, which is a 9% of Gestamp’s sales. The supplier has a workforce of nearly 4.000 people in China in its 11 plants and 2 R&D centres.
“Health and safety of our people and families is our number one priority,” added Peña.
“We have a continued dialogue with all of our customers in order to assess the situation to return to normal business activity as soon as feasible.”
