Rassini, S.A.B. de C.V. (Formerly Sanluis Corporation) Business Report FY ended Dec. 2016
Financial Overview |
(in million MXN) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net Sales | 16,340.1 | 12,897.2 | 26.7 | 1) |
| Operating Income | 2,323.6 | 1,447.9 | 60.5 | 2) |
| Sales by Division | ||||
| Suspensions Division North America | 10,046.6 | 7,515.0 | 33.7 | 3) |
| Suspensions Division Brazil | 1,517.9 | 1,369.7 | 10.8 | 4) |
| Brakes Division North America | 5,186.9 | 4,028.1 | 28.8 | 5) |
Factors
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2016 totaled MXN 16,340.1 million, an increase of 26.7% over the previous year. The increase in sales was driven by growth across all of the Company’s divisions.
2) Operating Income
-In the fiscal year ended December 31, 2016, the Company’s operating income increased by 60.5% to MXN 2,323.6 million. A greater market share, implementation of new technological advances, and strict control on fixed costs all contributed to the increase in income.
3) Suspensions Division North America
-The Company’s Suspensions Division North America had sales of MXN 10,046.6 million in the fiscal year ended December 31, 2016, an increase of 33.7% over the previous year. The division benefited from increased market penetration in the passenger vehicle segment with new contracts from GM and Volvo.
4) Suspensions Division Brazil
-The Suspensions Division Brazil had sales of MXN 1,517.9 million in the fiscal year ended December 31, 2016, an increase of 10.8% over the previous year. Despite reduced demand for passenger cars and commercial vehicles, the division’s sales benefited from obtaining contracts for specific global platforms.
5) Brakes Division North America
-The Brakes Division North America’s sales increased by 28.8% to MXN 5,186.9 million in the fiscal year ended December 31, 2016. Increased market penetration combined with the launch of new platforms were both factors in the division’s increase in sales.
Contracts
-The Company won a contract to supply brake rotors for the sixth-generation Ford Mustang. The components will be manufactured at the Company’s facility in Mt. Morris Township, Michigan, which will increase its workforce by approximately 10%. (From a press release on December 5, 2016)
-In 2016, the Company’s Coil Springs business received new business as a result of new platforms from GM and Volvo. Additionally, the Company also received a contract for coil springs on a global platform from one of its other customers. Over the lifetime of these platforms, the Company expects to manufacture 3.4 million coil springs.
-The Company’s North America Suspensions Division executed a project to develop leaf springs made from composite materials, which enables the same resistance and durability at lower weights. Currently, the division has several purchase orders for the leaf springs. Production for the leaf springs is expected to begin in 2018. The Company expects that sales of composite leaf springs will generate USD 5 million in 2019 to more than USD 40 million by 2022.
Awards
-For the second straight year, the Company was recognized by Daimler Trucks North America (DTNA), for quality, delivery, technology and cost performance, when it received the 2015 Masters of Quality Award. The Company provides front taper leaf springs and rear suspension airlink ‘Hockey Stick’ components used on Freightliner Cascadia vehicles. (From a press release on August 31, 2016)
-Both the Company’s Suspensions Division North America and its Brakes Division North America received Supplier Quality Excellence Awards from General Motors in 2016.
R&D Facilities
-The Company has a total of five technical centers located in the U.S., Mexico, and Brazil.
-In 2016, the Company opened two engineering offices in Stuttgart, Germany and Tokyo, Japan.
Technological Alliance
-The Company has formed several strategic alliances in 2016 with various universities for joint technology development as follows:
- University of Windsor: Development of a machine to manufacture iron samples at a record pace
- University of Alabama: Development of composite materials for leaf springs
- University of Texas: Development of a system to print high-strength 3D elastomers
- Other projects with Harvard University, Columbia University, University of Michigan, Tel Aviv University, National Autonomous University of Mexico (UNAM), Monterrey Institute of Technology and Higher Education (ITESM), and Instituto Politecnico Nacional (IPN).
Product Development
Leaf springs made from composite materials
-The Company’s North America Suspensions Division executed a project to develop leaf springs made from composite materials. The division developed materials to reduce the weight of the springs without changing their resistance or durability. Currently, the division has several purchase orders for the leaf springs.
Ceramic shot peening for coil springs
-As part of its work in developing new materials, the Company has completed the development of ceramic shot peening for its Coil Springs business. This enables the Company’s coil springs to achieve increased resistance and durability while also lowering weight.
Capital Expenditure |
(in million MXN) |
| FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | |
| Overall | 849.7 | 552.0 | 395.9 |
-In 2016, the Company’s North American Suspensions Division began installation of a new painting line.