Gestamp has recorded full-year 2017 net income up 8.3% to EUR240m (US$296m), with revenue increasing 8.6% to EUR8.2bn.
Results have been driven by good performance across almost all regions as well as the recovery of Gestamp’s operations in NAFTA, in line with expectations.
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The supplier’s global workforce continued to grow to more than 41,000 employees in 21 countries.
“The company benefits from high revenue visibility due to the nature of its business,” said Gestamp CEO, Francisco López Peña.
“In fact, our estimated volumes for order book covers more than 90% of the targeted revenues for the period up to 2020.”
Mercosur and Eastern Europe achieved strong revenues in 2017, growing by 40.8% at constant FX to EUR562m and by 27.9% reaching EUR1.04bn respectively. Western Europe increased revenues by 9.9% to EUR4.01bn and Asia by 8.4% to EUR1.1bn.
During this period, NAFTA declined by 1.9% reaching EUR1.48bn, in line with expectations, impacted by the change-over of large programmes, which resulted in lower volumes in certain models in the US and Mexico, as well as FX headwinds and lower tooling revenues.
“Growth has been driven by sound macro and auto sector dynamics, as well as good volume of existing programmes and the ramp-up of new projects, particularly in Eastern Europe and Mercosur,” added López Peña. “All this growth relies on our long-term strategic relationships with customers”.
“We have made steady progress with the action plan implemented in NAFTA to solve the one-off cost issues. Our on-going project executions and launches are progressing according to plan.”
