Nemak, S.A.B. de C.V. Business Report FY ended Dec. 2018
Financial Overview |
(in million MXN) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | Rate of Change (%) |
Factors | |
| Net Sales | 90,327 | 84,779 | 6.5 | -The main factor behind the increase was higher average selling prices, which reflected increases in the price of aluminum, the Company’s main production input. |
| Operating Income | 7,824 | 7,015 | 11.5 | -The increase was mainly due to higher revenues and lower SG&A. |
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 600 million in annual revenues.
Business Partnership
-The Company began working with a Chinese OEM on the development of structural components for pure-electric vehicles.
Recent Development outside Mexico
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-The Company achieved peak volume levels of its first program to produce structural components, supplying several SUV and sports car models of customer Volkswagen Group.
Business Overview
-By the end of 2018, it had produced and sold more than four million parts in this SC/EV segment.
-Battery housings represent one of its fastest-growing product lines in the SC/EV segment. Based on contracts won to date, the Company estimates that it will have a market share of approximately 20% in battery housings for plug-in hybrid vehicles in North America and Europe by 2020.
Awards
-The Company earned a special recognition from Audi for its successful track record of providing structural components with zero defects for the customer’s Q5 SUV.
-Thanks to its outstanding performance, the Company received the “Supplier of the Year” award from customer General Motors. The Company has been selected as a winner of this award fourteen times.
-The Company was selected as a finalist for the 2018 Automotive News Pace Awards for the adaption of its patented Rotacast casting process for use in the production of aluminum engine blocks.
R&D Expenditure |
(in million MXN) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | |
| Overall | 16 | 6 | 11 |
R&D Structure
-The Company has ten Product Development Centers, located in Austria, Canada, Germany, Poland, Spain, China, Mexico and the U.S.
R&D Activities
-The Company’s research activities focus on enhancing vehicle efficiency through improvements to the powertrain and the vehicle’s body. Specific areas of focus include the following:
Alloy Systems
-High performance alloys for high powered engines
-Mechanical properties and microstructural predictions
-Body structural casting technologies
-Thin walls in cylinder heads
Complex Geometries
-3D printing for advanced powertrain prototypes
-Inorganic binders
Powertrain Component Integration
-Turbo housing integration to cylinder heads
-Range extender and aluminium electric motor components
Surface Treatment Technologies
-Bore coating
-Surface treatment for thermal efficiency
-Body structural casting technologies
Capital Expenditure |
(in million MXN) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | |
| North America | 4,076 | 3,838 | 4,919 |
| Europe | 2,735 | 3,837 | 4,321 |
| Rest of World | 975 | 604 | 924 |
| Overall | 7,786 | 8,279 | 10,164 |