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March 10, 2017

Gestamp records 2016 net profit up 37% to EUR221m

Gestamp has posted 2016 net profit before tax up 37% to EUR221m (US$234m), with revenue of EUR7.5bn, a 7.3% increase, although without the foreign exchange impact the increase would have been 12.3%.

Gestamp has posted 2016 net profit before tax up 37% to EUR221m (US$234m), with revenue of EUR7.5bn, a 7.3% increase, although without the foreign exchange impact the increase would have been 12.3%.

The company recorded profitable growth with EBITDA of EUR841m and EBIT of EUR463m, both increasing at double-digits compared to the previous year.

The company’s workforce at the global level continued to grow to 36,395 employees, representing a growth rate of 9.6% compared to 2015 and 43% accumulated during the last five years.

In North America, turnover increased by 16.8% amounting to EUR1.5bn, with the rise driven by the US. In South America, turnover fell by 14% to EUR401m, due to a severe drop in activity in the local market and adverse exchange rate fluctuations in both Brazil and Argentina.

Asia grew at 6.3%, reaching a turnover of EUR1.04bn. China and South Korea contributed towards the growth due to plant ramp-ups and an increase in production volumes.

“During 2016, the company has continued on its path of profitable growth thanks to a long-term strategy focused on the excellence of its operations,” said Gestamp CEO, Francisco Riberas.

“Gestamp’s revenue growth above that of the sector is a trend already seen in past years and it is consolidated thanks to Gestamp’s proven ability to grow globally together with our customers through a commitment to innovation and technology.

“In line with previous years, we have continued to accompany our customers with investments worth EUR725m.”

Among the most recent corporate milestones, Gestamp entered Japan (Matsusaka) with its first plant, as well as the construction of a factory in Slovakia (Nitra), which will manufacture aluminium parts.

In addition, Gestamp has launched its first hot stamping plant in India (Pune) and has acquired a plant in Romania (Pitesti).

The supplier’s geographical footprint now reaches 21 countries with an industrial presence.

Gestamp currently has ten plants under construction in Japan, the US, Mexico, China, Brazil, Slovakia and the UK.

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