Nemak, S.A.B. de C.V. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016
July 17, 2016
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Nemak, S.A.B. de C.V. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported total revenues of USD 1,122 million compared to USD 1,167 million a year ago. Income from operations was USD 142 million compared to USD 131 million a year ago. Net income was USD 77 million compared to USD 77 million a year ago. EBITDA was USD 221 million compared to USD 204 million a year ago. CAPEX was USD 129 million compared to USD 113 million a year ago. Total revenues decreased 3.9% mainly due to lower aluminum prices.
For the six months, the company reported total revenues of USD 2,198 million compared to USD 2,339 million a year ago. Income from operations was USD 276 million compared to USD 260 million a year ago. Net income was USD 174 million compared to USD 149 million a year ago. EBITDA was USD 430 million compared to USD 401 million a year ago. CAPEX was USD 260 million compared to USD 214 million a year ago. Net debt was USD 1,339 million compared to USD 1,269 million a year ago. For the second quarter of 2016 and the first half of the year, EBITDA increased 8.3% and 7.2%, respectively, this result was mainly driven by an improved sales mix of higher value-added products, plus currency effects and efficiency gains. For the first half of 2016, total revenues decreased 6.0%, mainly due to lower aluminum prices and the depreciation of the euro compared to the US dollar.
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.