Gestamp, the multinational company specialising in the design, development and manufacture of highly engineered metal components for the automotive industry, has announced strong 2018 revenues.
The group, which opened its new 50,000 sqm plant at Four Ashes, near Wolverhampton last year, has revealed 2018 revenues of €8,548m, which represents a 4.2% growth rate or 10.2% at constant exchange rates.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) reached €961m, up by 7.9% compared to last year or 15.8% at constant currency. Net income increased by 7.5% to €258m.
The company’s global workforce has continued to grow. It now employs more than 43,000 employees across the 22 countries where the company has an industrial presence.
The company said it had experienced solid growth during Q4, mainly as a result of the ramp-up of new projects, especially in NAFTA (North American Free Trade Agreement), Mercosur (an economic and commercial group of countries in South America comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela with associate countries like Chile, Bolivia, Colombia, Ecuador and Peru) and Europe, partially offset by foreign exchange headwinds.
Revenue during the three-month period increased by 8.9% or 13.8% at constant exchange rates and EBITDA grew at 6.4% or 13.2% at the same rates.
Gestamp’s CEO, Francisco López Peña, said: “Gestamp has achieved its 2018 full year targets for revenue and EBITDA despite having experienced a more challenging than expected H2 as a result of market conditions due to shifts in production volumes particularly in Western Europe and Asia.”
By regions, Western Europe experienced a 2.2% growth rate or 2.5% at constant exchange rates, reaching revenue of €4,101m. Eastern Europe grew by 13.7% or 27.3% at constant rates to €1,187m.
NAFTA reached €1,659m with an 11.9% growth rate or 17.7% at constant rates, with Mercosur reaching €585m with a growth rate of 4.1% or 42.9% at constant exchange rates.
During this period, Asia declined by 7.8%, reaching €1,016m mainly driven by weaker market dynamics as China experienced its first production volume decrease in twenty years.
In addition to the new plant at Four Ashes, the company opened a further five new facilities last year, while it has a further four new plants (Mexico, Slovakia, United States and Morocco) due to be inaugurated during 2019.
“We are involved in strong investments as a result of the increasing outsourcing trend. Lightweight solutions continue to be key to reduce CO2 emission and with the increase of penetration of Electric Vehicles,” added Mr López Peña.