MADRID, SPAIN — Just days after it announced plans to expand its operations in Union County Gestamp reported revenue totaling more than €7.5 billion.
In a statement released Friday, Gestamp, the Spanish multinational company dedicated to the design, development and manufacture of automotive components announced that it had recorded revenues of €7.549bn in 2016, a 7.3% increase over the previous year, above the average growth of the sector in the same period. Without foreign exchange impact this increase would have been 12.3%.
(€ is the symbol for the Euro, the currency of the European Union of which Spain is a member. The revenues recorded by Gestamp in 2016 are the equivalent of approximately $8 billion.)
The press release states that Gestamp recorded a profitable growth with EBITDA of €841m and EBIT of €463m, both increasing at double-digits over the previous year. Gestamp increased its net profit by 37.1% during 2016 to €221m, which underlines the important managerial improvements made during the year.
(EBITDA stands for “earnings before interest, tax, depreciation and amortization” and is a measure of a company’s operating performance, evaluating it without having to factor in financing decisions, accounting decisions or tax environments. EBIT stands for earnings before interest and taxes and is a measure of a firm’s profit that includes all expenses except interest and income tax expenses and is the difference between operating revenues and operating expenses.)
Gestamp has maintained a solid financial position with net debt of €1.633bn at the end of 2016 which is reflected in a net debt leverage ratio (net debt/EBITDA) of 1.94x, lower than the 1.96x recorded in 2015.
The Company’s workforce at the global level has continued to grow to 36,395 employees. This represents a growth rate of 9.6% when compared to 2015 and 43% accumulated over the last five years.
(In announcing its expansion plans for its Union County facility last Wednesday, Gestamp stated that the $129 million capital investment it will make will result in the creation of 130 new jobs. Hiring for the new positions is expected to get under in the last quarter of 2018.)
• Growth In North America And Asia
In North America, turnover increased by 16.8% amounting to €1.546bn. This rise has been driven by the United States. In South America, turnover fell by 14% to €401m, due to a severe drop in activity in the local market and adverse exchange rate fluctuations in both Brazil and Argentina.
Asia grew at a pace of 6.3%, reaching a turnover of €1.038bn. China and South Korea contributed towards that growth due to plant ramp-ups and an increase in production volumes.
Gestamp’s president and CEO, Francisco J. Riberas, remarked that “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.”
In addition, Riberas said that “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 firm commitment to innovation and technology.”
• 10 Plants Under Construction
Gestamp’s president underlined “the exciting ongoing projects that the Company is undertaking, with 10 plants under construction in different continents.”
“In line with previous years, we have continued to accompany our customers with investments worth €725m,” Riberas added.
Among the most recent corporate milestones, it is worth noting the announcement of the entry in Japan (Matsusaka) with its first plant, as well as the construction of a plant in Slovakia (Nitra), which will manufacture aluminum parts.
In addition, Gestamp has launched its first hot stamping plant in India (Pune) and has acquired a plant in Romania (Pitești). Therefore, its geographical footprint already reaches 21 countries with an industrial presence. Gestamp currently has 10 plants under construction in Japan, the United States, Mexico, China, Brazil, Slovakia and the United Kingdom.
Looking ahead, the Company benefits from high revenue visibility due to the nature of its business, its long-term strategic relationships with customers and its disciplined capital spending program.
(The planned expansion of Gestamp’s Union County manufacturing facility on LSP Road off US 176 will involve the addition of more than 300,000 square feet of additional space. This will include the construction of 123,000 square feet at the Gestamp facility itself and leasing 182,000 square feet in another building.)
• Innovation Focused On Co-Development With Customers
Gestamp’s innovation is focused on co-development with its customers, a trend that is expected to increase significantly in the coming years, as well as on the application of advanced manufacturing processes and combining diverse materials.
Gestamp seeks to produce lighter and, at the same time, safer components. The Company is aware that the weight has a direct impact on the energy consumption of vehicles and therefore on CO2 emissions, one of the main priorities of manufacturers and society in general.
With more than 1,300 employees dedicated to innovation and 12 R&D centers, Gestamp plans to open an additional center in China, where research on the bodies and chassis of the vehicles of the future will be carried out.
Gestamp is a Spanish multinational company specialised in the design, development and manufacture of components for the leading automobile manufacturers. With presence in 21 countries, the Company works with the manufacturers to find solutions allowing to reduce the weight of the vehicles combined with an improvement of the safety in the event of collision. It does this in all its product lines: body-in-white, chassis and mechanisms.
The 12 largest automotive groups in the world rely on Gestamp to equip more than 800 models of 50 different brands with components manufactured by the Spanish company, which has 98 industrial plants and 12 R&D centres (10 additional plants and one R&D centre under construction). In 2016, its revenue amounted to €7.549bn, with staff to more than 36,000 employees throughout the world.