Nexteer Automotive has reported annual results for its fiscal year ended 31 December 2018, with revenue reaching US$3.912bn, an increase of 0.9% when compared with 2017. Profit attributable to equity holders for the year ended 31 December 2018 rose 7.9% to $380m compared with 2017. Nexteer generated $97m in total cash flow for the year ended 31 December 2018 which included the early paydown of $43m of debt balances under the company’s disciplined capital allocation approach. Nexteer’s backlog stood at $25.2bn at the end of 2018 – a 5.4% increase year-over-year from 2017.
“Our strong 2018 financial performance and continued enterprise diversification among product lines, customers and regions demonstrate that Nexteer is well-positioned for the future,” said Guibin Zhao, chairman and CEO of Nexteer Automotive. “These results highlight our commitment to delivering long-term profitable growth for shareholders and long-term value for our customers, suppliers, employees and society.”
In the past two years, the company says it has added five new electric power steering (EPS) customers – bringing its total number of customers globally to more than 60. In addition to gaining new customers, Nexteer has increased product exposure with current customers.
Nexteer also continued expansion and diversification of its global footprint in regions strategically important to key customers. In 2018, Nexteer opened a new manufacturing facility in Queretaro, Mexico and broke ground on new facilities in Chennai, India; Kenitra, Morocco; and Wuhan, China. Nexteer also announced the addition of a software centre in India to support growing demand for software-enabled functionality in advanced steering applications. Both the India Software Centre and the Chennai, India manufacturing facility celebrated their grand openings in January 2019.
Nexteer says that in 2018 it successfully launched 22 new customer programs across multiple product lines, regions and customers, including the Fiat Chrysler Ram 1500 in North America. Working with global OEM customers and other industry partnerships, such as Continental and Wabco, Nexteer maintains it ‘continued to strengthen its technology leadership and progressed the commercial readiness of new steering applications’ and says it is a ‘leader in intuitive motion control’.
“In addition to Nexteer’s relentless efforts being rewarded in business performance, our 2018 efforts were also validated by prestigious customer awards and industry recognition for technology innovations, quality and supplier-partner relationships,” said Zhao.
Some of the most notable customer awards that Nexteer received in 2018 were from two key customers – GM and Ford. In 2018, Nexteer received GM’s top Innovation Award for its High Availability EPS that delivers advanced safety to enable Levels 3 – 5 ADAS capabilities in automated driving. Ford recognised Nexteer’s manufacturing innovation and quality with two awards – the 2018 World Excellence Award and a Silver Award for Manufacturing Excellence. In addition, Nexteer also earned several industry recognitions – most notably Frost and Sullivan’s Engineering and Production Technology Leadership Award for its virtual process simulations and real-time monitoring technologies that significantly reduce cost, optimise processes, enhance quality and improve product performance.