Nexteer Automotive Group Ltd. Business Report FY ended Dec. 2015
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change (%) |
Factors | |
| Net Sales | 3,360.5 | 2,978.1 | 12.8 | 1) |
| Net Profit | 210.1 | 163.3 | 28.7 | 2) |
Factors
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2015, was USD 3,360.5 million, an increase of 12.8% from the previous year. The increase in sales was driven primarily by stronger production and new EPS and CIS programs in North America, as well as by increased market share in China. These gains were partially offset by decreases in revenue in Europe caused by unfavorable foreign exchange rates, as well as sale decreases in Korea and Brazil.
2) Net Profit
-In the fiscal year ended December 31, 2015, the Company’s net profit increased by 28.7% from the previous year to USD 210.1 million. Factors causing the increase include increased revenue from higher demand of EPS as well as the implementation of various cost improvement initiatives. These gains were partially offset by unfavorable foreign exchange rates.
Joint Ventures
-In 2015, the Company invested USD 3.1 million in its 50:50 joint venture with Chongqing Jianshe Industry Group Co., Ltd., called Chongqing Nexteer Steering Systems Co., Ltd., to manufacture and sell EPS products.
Restructuring
Relocation of global headquarters
-The Company has announced that Auburn Hills, Michigan, U.S. will be the future home of its global headquarters. The move to Auburn Hills will take place in the second quarter of 2016. The new headquarters will house approximately 150 employees who will be a combination of new and current employees. The Company’s Saginaw site will still be used as a Global Engineering Division after the move. (From press releases on August 7, 2015 and February 2, 2015)
Contracts
-In 2015, the Company launched 24 new major customer programs: 11 in North America, 6 in China, and 7 in the rest of the world. Of these 24 programs, 6 involved EPS systems, 4 involved steering columns and intermediate shafts, 10 involved driveline systems, and the remaining 4 involved HPS systems.
Awards
-The Company’s plant in Suzhou, China, received a “Best Supplier” award from SAIC GM Wuling in 2015.
-PSA Peugeot-Citroen awarded the Company’s plant in Tychy, Poland with the “PSA Best Plant 2015” award for manufacturing excellence.
-The Company received “Best Supplier 2015” awards from Dongfeng Peugeot-Citroen and Dongfeng Liuzhou Motor Company.
Outlook
-As the Company was recently awarded a significant EPS program with a global automaker operating in Brazil, the Company expects to establish a significant presence in the country by 2018.
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 206 | 182 | 176 |
| Expenditure as % of revenue | 6.1% | 6.1% | 7.4% |
R&D Facilities
| List of R&D Facilities |
| Number of Locations | Locations | |
| Systems Engineering Center | 1 | Saginaw, Michigan, U.S. |
| Application Engineering Centers | 5 | Saginaw, Michigan, U.S.; Paris, France; Lingyun, China; Beijing, China; Suzhou, China |
| Vehicle Performance Centers | 3 | Saginaw, Michigan, U.S.; Milford, Michigan, U.S.; Casa Grande, Arizona, U.S. |
| Customer Service Centers | 11 | Dearborn, Michigan, U.S.; Troy, Michigan, U.S.; Porto Alegre, Brazil; Russelshelm, Germany; Munich, Germany; Torino, Italy; Tychy, Poland; Gliwice, Poland; Bangalore, India; Seoul, South Korea; Keysborough, Australia |
R&D Activities
-The Company announced that it has joined the Affiliates Program at University of Michigan's Mobility Transformation Center (MTC). The Company is one of 27 companies from a wide range of industries that will play a role in shaping a viable system of connected and automated vehicles with the university. Each of the 27 companies will commit USD 150,000 over three years to the MTC. (From a press release on March 30, 2015)
-In 2015, the Company launched “SYNTecrity”, a business and technology development group operating independently from the Company’s R&D division. SYNTecrity’s objective is to identify and develop products and functional capabilities for next-generation autonomous vehicles.
Patents
-In the fiscal year ended December 31, 2015, the Company filed 168 patent applications and was granted 66 patents.
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 165.6 | 172.5 | 184.5 |
Investments outside U.S.
-The Company announced the opening of its fourth China-based steering manufacturing plant in the Guangxi Zhuang Autonomous Region in Liuzhou. The plant will produce brush electric power steering systems (BEPS), which is a unique product designed for the Chinese automotive and other developing markets. The plant will operate as a wholly owned subsidiary known as Nexteer Automotive Systems (Liuzhou) Co., Ltd. (Nexteer Liuzhou). The facility covers an area of 10,000 square meters. Nexteer Liuzhou currently has more than 200 employees and expects to double its workforce in 2016. (From a press release on August 24, 2015)