Nemak Announces Earnings Results for the Third Quarter of Fiscal 2017; Provides Earnings Guidance for the Full Year of Fiscal 2017
October 17, 2017 at 11:31 am EDT
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Nemak announced earnings results for the third quarter of fiscal 2017. For the quarter, the company reported consolidated operating income of $66 million, 35.9% lower than the year-ago figure. Reflecting the reduction in operating income, EBITDA finished at $153 million. This is 15.9% lower than third quarter of fiscal 2016. And EBITDA per unit was $13.1, which compares to $14.9 a year ago. Despite the decrease in EBITDA, the company's year-to-date free cash flow was $46 million better than last year, which speaks well of its capacity to prudently manage outflows, such as working capital and capital expenditures, under challenging industry conditions. Net income amounted to $11 million. That is an 81% decline over third quarter of fiscal 2016. The main factors were: the reduction of operating income; foreign exchange fluctuations, in particular the appreciation of the euro against the dollar, which increased the dollar value of euro-denominated debt; plus higher interest expenses. The company invested $93 million, continuing its efforts to optimize capital expenditures while adding capacity across the company's regions and product lines to support new program launches.
The company provided earnings guidance for the full year of fiscal 2017. The company again, ratifying its revenues of about $4.4 billion as well as $750 million in EBITDA for the year.
Nemak SAB De CV, formerly Tenedora Nemak SA de CV, is a Mexico-based holding company primarily engaged in the automotive industry. The Company specializes in the design, manufacture and distribution of aluminum components for powertrain and body structure applications. Its product portfolio comprises cylinder heads, engine blocks, shock towers, tank cover frames, B-pillars, transmission housings, frame rails, and cross members, among others. The Company operates manufacturing facilities in a range of countries, such as Canada, the United States, Mexico, Brazil, Spain, Germany, Poland, Russia, India and China. Furthermore, Its customers include Audi, BMW, KIA, Ford, Hyundai, Chrysler, Nissan, Volvo, Toyota, as well as Volkswagen, among others. The Company controls a number of subsidiaries, including Modellbau Schonheide GMBH, Camen International Trading Inc, Nemak Canada SA de CV and Nemak Czech Republic Sro, among others. Its parent is ALFA SAB de CV.