MADRID, SPAIN — The first half of 2017 has been good for Gestamp which this week reported revenues totaling slightly more than €4.1 billion.
In a statement released Monday, Gestamp, the Spanish multinational company specializing in the design, development and manufacture of highly engineered metal components for the automotive industry, presented its results for H1 2017. The press release states that during the first half of 2017 the company recorded revenues of €4,131 million or just over €4.1 billion, 10.4% more than in H1 2016.
(€ is the symbol for the Euro, the currency of the European Union of which Spain is a member. The revenues recorded by Gestamp in the first half of 2017 are the equivalent of $4,828,478,040.)
The press release also states that Gestamp recorded a profitable growth with EBITDA of €452 million, an 11.1% increase over the first half of 2016. It states that at constant FX rates, sales growth would have been 11.1% while EBITDA would have increased by 12.8%. It further states that EBIT reached €242m, up by 12.6% over the same time the previous 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. FX stands for foreign exchange rate and is the rate which one currency is exchanged for another. 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.)
The press release states Gestamp has also continued to grow its net profit reaching €116 million, which represents an increase of 27.2% compared to 1H 2016.
Outperforming The Market Across Regions
The press release states Gestamp’s growth has been driven by good volumes of existing programs and the ramp-up of new projects especially in Eastern Europe and Mercosur.
• Western Europe grew by 9.2% to €2,144 million
• Eastern Europe increased sales by 29.2% to €484 million
• Mercosur by 54.3% to €256 million
• North America by 0.4% to €752 million
• Asia by 1.2% to €496 million
(Mercosur is a sub-regional customs union and trading bloc of mostly South American countries dedicated to the promotion of free trade and the fluid movement of goods, people, and currency. Its full members are Argentina, Brazil, Paraguay, and Uruguay. Venezuela was also a full member but was suspended in December 2016. Associate countries are Bolivia, Chile, Peru, Colombia, Ecuador and Suriname. Observer countries are Mexico, New Zealand and Japan.)
The press release states that Gestamp has added five new plants to its footprint during the first half of 2017 and has announced the construction of its first plant in Japan. Gestamp continued strengthening its R&D capabilities by opening new centers in Tokyo (Japan) and Michigan (US) which will enable the company to work in close proximity with its customers and co-develop industry-leading solutions to achieve lighter and safer vehicles.
In this context, during the first half of 2017 Gestamp has made significant investments to accommodate awarded business, which will enable the company to continue growing at a rate above its addressable market.
“We are very satisfied with the performance recorded during the first half of 2017. The good volumes of existing programs especially in Eastern Europe and Mercosur confirm that we are on track to achieve our targets for this year,”remarked the President and CEO of Gestamp, Francisco J. Riberas.
“Gestamp will remain in the same path in order to continue growing the business at a rate above the market and to take advantage of the increasing outsourcing trend,” Riberas said. “Our customers trust leading long-standing suppliers with best in class technology and we are uniquely positioned to capitalize on this opportunity.”
Gestamp’s growth in the first half of 2017 includes the expansion of the Gestamp facility in Union County. In March, the company announed that the $129 millnion capital investment it will make in its Union County facility 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.
The expansion of Gestamp’s Union County manufacturing facility on LSP Road off US 176 involves the addition of more than 300,000 square feet of additional space. This includes the construction of 123,000 square feet at the Gestamp facility itself and leasing 182,000 square feet in another building.
Gestamp is a Spanish multinational specialized in the design, development and manufacture of highly engineered metal components for the automotive industry. It develops products with an innovative design with the aim to produce lighter and safer vehicles, which offer improved energy consumption and a reduced environmental impact. Its products cover the areas of Body in White (bodywork), Chassis and Mechanisms.
The company is present in 21 countries with 101 manufacturing plants and eight under construction, 12 R&D centers and 1 under construction, and a workforce of over 36,000 employees worldwide. In 2016, its turnover was €7,549m. Gestamp is listed on the Spanish stock exchange under the “GEST” ticker.