MADRID, SPAIN — The first quarter of 2017 was a good one for Gestamp which reported revenues totaling just over €2 billion.
In a statement released Monday, Gestamp, the Spanish multinational company dedicated to the design, development and manufacture of automobile components, announced that it had generated revenues of €2,096 million or just under €2.1 billion during the first quarter of 2017, 16.1% more than in the first quarter 2016, outpacing global vehicle production by more than 3x.
(€ 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 $2,282,858,400.)
The press release states that Gestamp recorded a profitable growth with EBITDA of €222 million, 15.4% more than in the first quarter of 2016. It also states that EBIT reached €120m, up by 20.5%.
(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.)
The press release further states that Gestamp has also continued to grow its net profit, reaching €55 million, an increase of 33.2% compared to the first quarter of 2016. It further states that at FX rates, sales growth would have been 16.8% while EBITDA would have grown by 17.9%.
Solid Growth Across Regions
The press release states that Gestamp has grown its operations in all regions, due to volume increases in existing programs and the ramping up of new projects. That growth and the regions it occurred in are:
• Western Europe which grew by 16.5% to €1,100 million
• Eastern Europe with increased sales by 28.8% to €224 million
• Mercosur by 51.1% to €117 million
• North America by 7.9% to € 393 million
• Asia by 6.7% to €263 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.)
“In line with our strategic goal of staying close to our customers, we have launched important projects such as the construction of our first plant in Japan, the introduction of our first hot stamping line in India, as well as the addition of Romania to our footprint,” President and CEO of Gestamp, Francisco J. Riberas said.
The press release states that in the first quarter of 2017 Gestamp made significant investments amounting to €225 million in support of awarded projects.
“We are satisfied with our financial results in the first quarter, which are consistent with our objectives for the year. We will continue to invest for our growth, while maintaining a conservative risk profile and a solid financial base,” Riberas added.
That growth includes the expansion of the Gestamp facility in Union County. In March, Gestamp announed that the $129 millnion capital investment it will made 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 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.
The announcement of its revenues for the first quarter of 2017 comes just a month after Gestamp announced that it had ended 2016 with revenues totaling more than €7.5 billion or approximately $8 billion.
The press release announcing it revenue for 2016 also announced that Gestamp has a total of 10 plants under construction in Japan, the United States, Mexico, China, Brazil, Slovakia and the United Kingdom. Other corporate milestones announced at that time included the company’s entry in Japan (Matsusaka) with its first plant; construction of a plant in Slovakia (Nitra), which will manufacture aluminum parts; the launching of its first hot stamping plant in India (Pune); and the acquisition of a plant in Romania (Pitești).
In addition, the press release stated that Gestamp, which has more than 1,300 employees dedicated to innovation and 12 R&D centers, is planning 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 specializing 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.