Nemak, S.A.B. de C.V. Business Report FY ended Dec. 2019
Financial Overview |
(in million MXN) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of Change (%) |
Factors | |
| Net Sales | 77,363 | 90,327 | (14.4) | -Lower volume and prices of aluminum |
| Operating Income | 4,964 | 7,823 | (36.5) | -Non-recurring effects derived from the planned closure of the plant in Windsor, Canada -Lower revenue -The impact of the depreciation of the euro against the U.S. dollar |
-The Company announced its decision to cease manufacturing operations in Windsor, Canada by mid-2020. The Windsor plant, which has 270 employees and produces engine blocks, represents approximately 1% of the Company's consolidated revenues. The decision to close the plant is a result of the early phase-out of an export program with a customer in China, which is expected to bring capacity utilization at the plant to less than 10% by 2020. (From a press release on July 16, 2019)
Contract
-The Company won contracts to produce structural and electric vehicle (SC/EV) parts worth USD 280 million, bringing its total order book in the segment up to USD 750 million in annual revenues.
-The Company will supply battery housings for the new Ford Mustang Mach-E, which will be manufactured at the Ford plant in Cuautitlan, Mexico. It will produce this component at a new facility dedicated to the assembly of parts for electric vehicles. The Company will invest approximately USD 25 million for the first phase of the plant, with the possibility of expanding at the client's request. Its battery housing consists of a 2.2 by 1.5 meter structure of aluminum parts, mainly stampings and extrusions, which will be joined together using state-of-the-art robotic welding, adhesives, and self-piercing rivets. (From a press release on January 21, 2020)
R&D Expenditure |
(in million MXN) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Overall | 21 | 16 | 6 |
R&D Structure
-The Company has ten Product Development Centers, located in Austria, U.S., Canada, Germany, Spain, China, Mexico and Poland.
Capital Expenditure |
(in million MXN) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| North America | 3,475 | 4,076 | 3,838 |
| Europe | 2,263 | 2,735 | 3,837 |
| Rest of World | 878 | 975 | 604 |
| Overall | 6,616 | 7,786 | 8,279 |