Gestamp, the multinational company specialized in the design, development and manufacture of highly engineered metal components for the automotive industry, has presented its results for the first nine months and recorded revenues of €6,155m which represents a 2.5% growth rate or 8.9% at constant FX.
Growth for 9M 2018 has been driven by good volumes of existing programs and the ramp-up of new projects, especially in NAFTA, Eastern Europe and Mercosur but partially offset by deeper impact of FX headwinds.
EBITDA reached €681m, which represents an 8.6% increase or 16.8% at constant FX reaching an 11.1% margin. Net profit reached €163m, up by 7.0%.
Gestamp has continued to invest in strategic projects by increasing its global footprint with the opening of six new facilities this year, including the new Matsusaka plant in Japan, which will be inaugurated later this week.
More challenging Q3 than expected
Gestamp's performance for the first nine months of 2018 has been in line with the expectations, despite having experienced a more challenging Q3 than expected as a result of the underlying market conditions.
The Company recorded €1,894m revenues for the third quarter, which represents an increase of 1.1% or 7.6% at constant FX. During Q3 Gestamp's EBITDA increased by 11.9% or 22.2% at constant FX.
During the third quarter of 2018, sales have been impacted by ongoing auto market uncertainties which continue to be around WLTP, trade tensions, China slowdown and emerging markets FX impact all of which have led to short-term volatility.
Regardless the short-term uncertainties, auto production is expected to grow at a stable 0.9% in 2018 and more than doubling that growth rate to 2.4% in 2019 in Gestamp's footprint, according to IHS as of October 2018.
'Despite some uncertainties in the market for the third quarter of the year, Gestamp has performed in line with our expectations during the first nine months in which we have continued to invest in high quality projects which will translate into profitable growth in the future,' Francisco López Peña, Gestamp's CEO explained.
'OEMs continue to focus on the launch of new EV programs which should provide business opportunities for which Gestamp is well positioned given its expertise in offering lightweight solutions,' he stated.