Gestamp has posted third-quarter net profit down 10% to EUR28m (US$31m), while revenue rose 8.7% to EUR2.1bn.
Gestamp outperformed the market during the first nine months across all regions, with Eastern Europe, North America and Mercosur as the main growth contributors
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Spanish supplier added it also outperformed the auto production market during 9M, 2019 with a 6.8% growth rate in revenues (7.0% at constant FX) when compared with 9M, 2018.
Gestamp reported an EBITDA of EUR755m during 9M, 2019 implying a growth rate of 11.1% at constant FX.
Gestamp has outperformed the auto production market in all of its regions for the first nine months in terms of revenue. Growth at constant FX has been strong in Eastern Europe (21.1%), North America (20.2%) and Mercosur (18.7%).
In Asia, Gestamp grew 9.6% in a challenging market that decreased -7.1%. The only geography in which Gestamp decreased its revenues was in Western Europe (-4.4%) but less than the market decrease (-6.2%).
During Q3, 2019, Gestamp started production in its new facility in Michigan.
2019 financial outlook:
Gestamp has updated its guidance for 2019. Revenue growth will be mid-single digit instead of high single digit. EBITDA will grow compared with 2018, but not at a rate higher than revenue growth.
Capex decreases from around 9.5% of revenues to around 9.0% of revenues. Leverage moves from less than 2.2 times net debt/EBITDA ratio to around 2.4 times.
“In order to adapt to the current uncertain auto market environment, Gestamp has moderated its capital expenditures by being more selective in the opportunities pursued,” said Gestamp CEO, Francisco López Peña
“However, we expect to continue to outperform the market growth rate but with a focus on free cash flow generation.
“The company keeps focused on cost efficiencies, capex moderation, headcount reduction in certain geographies and optimisation of our operations.”
