MADRID, SPAIN — 2018 continues to be a good year for Gestamp which saw it profits for the second quarter of the year increase over that of the second quarter of 2017.
In a statement released on Thursday, July 26, Gestamp, the multinational company specialized in the design, development and manufacture of highly engineered metal components for the automotive industry, presented its results for Q2 and H1 2018 with reported revenues for the second quarter of €2,220m, which represents a growth of 9.1% and 16.2% at constant FX.
(€ is the symbol for the Euro, the currency of the European Union of which Spain is a member. The revenues recorded by Gestamp for the second quarter of 2018 are the equivalent of $2,587,638,660.)
The press release states that during the second quarter of 2018, growth has been driven by good volumes of existing programs and the ramp-up of new projects but partially offset by deeper impact of FX headwinds. The Company recorded an EBITDA of €257m ($299,638,613), which represents an increase of 11.4%. At constant FX, EBITDA would have increased by 19.6%.
(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.)
Results for the second quarter of 2018 have been “strong despite the depreciation of currencies versus the Euro,” according to Gestamp CEO, Francisco López Peña. “Gestamp has recorded a positive performance during the second quarter with a continued focus on efficiencies in its industrial activities, resulting in an increase in profitability,” he explained.
Revenue of €4,278m recorded during H1
The press release states that Gestamp recorded revenues of €4,278m ($4,987,758,702) during H1 2018, 3.5% more than in H1 2017 and 9.9% at constant FX, and an EBITDA of €488m ($568,960,176), representing a 7.8% increase and 14.9% at constant FX. During the same period, EBIT reached €278m ($324,120,756), up by 14.9%, and Net Profit stood at €136m ($158,562,672), a 16.5% increase.
It further states that Gestamp has continued to build on its long-standing growth trajectory, outperforming the market by 7.9 percentage points on a constant FX growth basis.
The press release states that Mercosur, Eastern Europe and North America have driven Gestamp’s growth. In terms of reported revenue for 1H 2018, Mercosur increased by 19.7%, Eastern Europe by 18.4% and North America was up 0.8%. Asia’s growth stood at 2.0% and Western Europe remained broadly flat at -0.4%.
(Mercosur is a South America trade bloc composed of full members Argentina, Brazil, Paraguay and Uruguay; associate countries Bolivia, Chile, Peru, Colombia, Ecuador and Suriname; and observer countries New Zealand and Mexico. Venezuela was a full member but has been suspended since 2016.)
“We have continued to focus on profitable growth, with significant investments weighted towards H1 that are expected to continue to support our business in the coming years.” Gestamp’s CEO explained.
López Peña added: “H1 2018 results are in line with our expectations and on the right path to achieve full year guidance targets. Gestamp continues to be well positioned given its highly diversified geographical footprint and technological contribution to its customer base.”
“Gestamp will continue to grow the business at a rate above the market and to take advantage of the increasing outsourcing trend,” he concluded.
Gestamp is a Spanish multinational specialized in the design, development and manufacture of highly engineered metal components for top vehicle manufacturers. It develops products with an innovative design 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, chassis and mechanisms.
The company is present in 21 countries with more than 100 manufacturing plants and 7 under construction, 13 R&D centers, a workforce of more than 41,000 employees worldwide. Its turnover stood at €8,202m ($9,562,670,790) in 2017. Gestamp is listed on the Spanish stock market under the GEST ticker.