Gestamp has unveiled nine-month net profit up 18% to EUR153m (US$178m), while revenue rose 12% to EUR6.005bn.
Third quarter results for 2017 have been impacted, as anticipated, by non-recurring higher launch costs in NAFTA (already announced in September), as well as increased FX headwinds. Despite the challenges, Gestamp reported EBITDA for the third quarter of 2017 of EUR175m, which is in line with Q3, 2016.
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In NAFTA, performance evolved in accordance with the action plan implemented with significant one-off costs impacting Q3, 2017. Gestamp expects NAFTA to experience a recovery of its profitability levels in 2018 with a continued upward trend in the future.
Full year targets for 2017 remain unchanged as per the revised guidance provided in September and Gestamp reiterates its mid-term guidance and continued focus on long-term value creation.
“Third quarter results for 2017 have been in line with our expectations, mainly impacted by the project launch issues faced in NAFTA, which we anticipated in September, but operational improvements are already being achieved as we are making steady progress with the action plan implemented,” said Gestamp president and CEO, Francisco Riberas.
“Other than the one off issues highlighted in NAFTA, our on-going project executions and launches are progressing according to plan, underpinning growth in particular in Mercosur and Eastern Europe.
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By GlobalData“Regarding the first nine months of the year, we have seen sound macro and auto sector trends which provide a solid foundation and continue to support our vision, long-term strategy and objectives.”
