HONG KONG, Mar 13, 2015 - (ACN Newswire) - The world's leading steering and driveline supplier, Nexteer Automotive Group Limited announced on 12, March 2015 the consolidated results of the Company and its subsidiaries for the year ended December 31, 2014 together with the comparative figures for 2013.
INDUSTRY REVIEWThe growing global automotive market continues to drive demand in steering and driveline systems. Global light vehicle production increased by 3.4% from 84.47 million units in 2013 to 87.37 million units in 2014, achieving a new record high in this segment. Driven by continued increasing demand for vehicle ownership, China light vehicle production was at 22.98 million units in 2014, up 8.7% or 1.83 million over the 21.15 million units produced in 2013. North America recorded the fourth consecutive year of growth in 2014 with17.02 million units, an increase of 5.2% or 800,000 units over the 16.18 million level achieved in 2013. Europe production remained stable in 2014 at 20.14 million units, an increase of 4.2% over 2013 levels of 19.33 million units.
FINANCIAL REVIEWNexteer's revenue for the year ended December 31, 2014 was US$2978.1 million, a 24.8% increase from the previous year of US$2,386.8 million. Nexteer's gross profit for the year ended December 31, 2014 was US$420 million (2013: US$339.4 million). Nexteer's profit attributable to equity holders of the Company for the year ended December 31, 2014 was approximately US$161.4 million (2013: US$109.2 million). Nexteer's profit for the year ended December 31, 2014 was higher than that of the profit forecast due mainly to an increase in revenue from new program launches related to previously booked business of 2014.
Consistent with its business plan, Nexteer was successful in driving significant improvements to its financial condition in 2014. The initial offering and listing of its shares on the Stock Exchange of Hong Kong Stock Limited in 2013 provided incremental liquidity for use in capital spending for new programs, additional research and development expenditures, and working capital. Besides, in 2014, the issuance of senior notes and the refinancing of the North American borrowings further solidifies their 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.
FUTURE PROSPECTSMr. ZHAO Guibin, Chairman and CEO of Nexteer Automotive Group Limited, said, "Technology is the competitive advantage that drives opportunity for the Company. The integration of advanced driver assist functionality into their systems is key to providing sustainable solutions that customers increasingly require. With their commitment to deliver "Affordable Compelling Technology", I believe that Nexteer is well positioned for continued success throughout their global operations. Nexteer continues to strengthen their business globally by offering steering and driveline products that are personalized to fit each market's needs, with an emphasis on the specific needs of emerging markets. Their capital structure enables them to consider targeted acquisitions and alliances appropriate for their business. This is an enormous benefit as we look to develop collaborative strategies to continue to grow the enterprise globally. Along with the many growth opportunities on the horizon for 2015 and beyond, Nexteer will continue to closely monitor the needs of global markets and look for favorable non-organic opportunities to ensure Nexteer's long-term success."
Copyright 2015 ACN Newswire . All rights reserved.
