Gestamp has recorded a 7% rise net profit to EUR163 (US$187m) for the first nine months of this year and revenue up 2.5% to EUR6.2bn.
The Spanish supplier says growth for the nine months has been driven by good volumes of existing programmes and the ramp-up of new projects, especially in NAFTA, Eastern Europe and Mercosur but partially offset by deeper impact of FX headwinds.
EBITDA reached EUR681m, which represents an 8.6% increase or 16.8% at constant FX reaching an 11.1% margin.
More challenging Q3 than expected:
The company posted EUR1.9bn revenues for the third quarter, which represents an increase of 1.1% or 7.6% at constant FX. During Q3 Gestamp’s EBITDA increased by 11.9% or 22.2% at constant FX.
During the third quarter of 2018, sales have been impacted by ongoing auto market uncertainties which continue to be around WLTP, trade tensions, a China slowdown and emerging markets FX impact, all of which have led to short-term volatility.
“Despite some uncertainties in the market for the third quarter, Gestamp has performed in line with our expectations during the first nine months in which we have continued to invest in high quality projects which will translate into profitable growth in the future,” said Gestamp CEO, Francisco López Peña, Gestamp’s CEO.
“OEMs continue to focus on the launch of new EV programmes, which should provide business opportunities for which Gestamp is well positioned given its expertise in offering lightweight solutions.”
Gestamp has continued to invest in projects by increasing its global footprint with the opening of six new facilities this year, including the new Matsusaka facility in Japan, which will be inaugurated later this week.