In fiscal year 2014, Nexteer Automotive’s revenue increased by nearly 25 % and gross profit increased by almost as much, according to the company’s financial results released Thursday, March 12.
“Our strong financial performance is a result of Nexteer’s commitment to innovation, continued globalization efforts and unrivaled technology and product portfolio,” said Laurent Bresson, president and global chief operating officer of Nexteer Automotive, in a prepared statement.
“Nexteer’s strengthened market position has allowed the company to diversify its customer base and grow in every major region of the world.”
Nexteer, a global tier one automotive supplier committed exclusively to wheel-to-wheel advanced steering and driveline systems, is headquartered in Saginaw County’s Buena Vista Township. However, company officials last month announced plans to relocate Nexteer’s global headquarters to metro Detroit, a move involving fewer than 150 people.
Offices that are part of the move include the senior leadership team, sales, finance and legal staffs and a portion of the company’s supply management team, said company spokesman Luis Canales.
Here are the 2014 highlights outlined in Nexteer’s release:
Revenue increased by approximately 24.8 % to $2,978.1 million, up from $2,386.8 million in 2013.
Gross profit increased by approximately 23.7 % to $420 million, up from $339.4 million in 2013.
Profit attributable to equity holders of Nexteer increased by approximately 47.8 % to $161.4 million, up from $109.2 million in 2013.
The company maintained strong backlog of booked business at approximately $9 billion.
When it comes to the operating environment, Nexteer experienced an increase in revenue from new program launches related to previously booked business; strong automobile industry production resulting in higher demand its products; continued rotation of its portfolio electric power steering; and enterprise focus on cost and operational efficiency.
Company officials said Nexteer’s 2014 profit was higher than forecasted primarily because of an increase in revenue from new program launches related to previously booked business of 2014. And the company drove “significant improvements to its financial condition” in 2014.
“The initial offering and listing of the company’s shares in 2013 on the Hong Kong Stock Exchange provided incremental liquidity to use in capital spending for new programs, additional research and development expenditures, and working capital,” the release states.
“In 2014, the issuance of senior notes and the refinancing of the North American borrowings further solidified Nexteer’s capital structure, providing strong liquidity and capital for growth. Nexteer’s strong top line growth and focus on operational efficiency, coupled with a strong automotive market, continues to drive earnings accretion.”
Guibin Zhao, chairman and CEO of Nexteer Automotive, said “technology is the competitive advantage that drives opportunity for Nexteer.”
“The integration of advanced driver assist functionality into our systems is key to providing sustainable solutions that customers increasingly require,” he said in a released statement.
“Our capital structure enables us to consider targeted acquisitions and alliances appropriate for our business. This is an enormous benefit as we look to develop collaborative strategies to continue to grow the enterprise globally.”