Nexteer Automotive has reported financial results for its fiscal year ended 31 December 2013 with revenue and profit signficantly up on the previous year.
Guibin Zhao, chairman and CEO of Nexteer Automotive said, “We plan to strengthen our business in North America, grow in Europe and expand our business in developing markets, including China, by offering steering and driveline products that are specifically tailored to different markets’ product performance and price requirements.
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“In addition, we plan to build upon existing relationships with global and local original equipment manufacturers in these markets. We may also pursue selected strategic acquisitions and alliances globally, including those in developing markets. We plan to expand our manufacturing plants in certain countries, such as China, to increase our production capacity. We believe that by offering tailored products, building upon existing relationships, pursuing strategic acquisitions and alliances and expanding our manufacturing plants, our brand recognition and revenue in developing markets will continue to grow.”
Operating environment
- Strong revenue growth generated from previously booked business
- Improved product line mix (movement from hydraulic power steering (HPS) to electric power steering (EPS))
- Improved geographic mix
- Cost efficiency initiatives
Nexteer said it experienced strong global demand from its customers throughout 2013 for the company’s electric power steering systems as they look to improve fuel efficiency in their vehicles.
The automotive industry experienced an increase in global light vehicle production, which was up 3.6% in 2013 over 2012 (84.47m units vs. 81.51m units). Driven by increased demand for vehicle ownership, China light vehicle production was at 21.15m units in 2013, up 13% or 2.58m over the 18.57 units produced in 2012. North America recorded its fourth consecutive year of growth in 2013 with 16.18m units, an increase of 4.9%, or 750,000 units, over the 15.43m level achieved in 2012. Europe production remained stable in 2013 at 19.33m units, an increase of 0.2% over 2012 levels of 19.30m units.
“Nexteer offers the broadest steering portfolio in the market, a portfolio capable of steering everything from compact sedans to full-size trucks with our efficient 12-volt electric power steering,” said Laurent Bresson, president and chief operating officer of Nexteer Automotive.
“This portfolio, coupled with our strong global footprint and focus on technology has allowed us to continue to secure new customer contracts, expand globally and deliver the financial results our shareholders expect from us.”
