AUBURN HILLS, Mich. – August 17, 2022 – Nexteer Automotive today reported first half results for the period ended June 30, 2022. During this period, industry headwinds continued to provide a challenging operating environment due to elevated material costs, ongoing global supply chain constraints (e.g., semiconductor chips, etc.), the geopolitical conflict in Eastern Europe, and the COVID-19 pandemic. Despite these headwinds, the Company secured another strong period of bookings – including three breakthrough steering wins – and successfully launched 17 new customer programs around the world. Nexteer continues to execute its long-term strategy for profitable growth including further customer diversification and product expansion aligned with industry megatrends.
“While the industry continues to be a dynamic and challenging environment given further supply chain disruptions, COVID-19 impacts and continued inflationary pressures, Nexteer remains optimistic that the operating environment will improve as we move forward,” said Robin Milavec, President, Chief Technology Officer (CTO), Chief Strategy Officer (CSO) and Executive Board Director, Nexteer Automotive. “In the first half of 2022, Nexteer delivered strong bookings performance including a breakthrough steering win with a global OEM for the industry’s first high-volume Steer-by-Wire program. This is one example of many that demonstrates how Nexteer is well positioned to continue to leverage our technology strengths and megatrend alignment to maintain business growth above market levels.”
Bookings & Breakthrough Steering Wins
Nexteer achieved new customer program awards (bookings) of US$4.4 billion for the first half of the year. These included breakthrough steering wins with a global OEM for the industry’s first high-volume Steer-by-Wire (SbW) program, a new electric vehicle (EV) truck program and a new customer win with a leading Chinese NEV OEM.
During the first half of 2022, 90% of the bookings will be on EV platforms, and 83% of these bookings represent conquest business – which provides longer term growth over market for Nexteer.
17 Successful New Customer Program Launches
In the first half of 2022, Nexteer further diversified across customers, products and markets with 17 customer program launches – marking another period of strong program launches. Of these customers’ programs, 16 represented new or conquest business and eight represented EV launches supported by Nexteer’s products.
First Half 2022 Financial Results
Nexteer’s first half of 2022 financial performance was significantly impacted by the various cost headwinds and customer production and operating challenges experienced across the broader automotive supply chain. Nexteer reported first half 2022 revenue of US$1.791 billion, an increase of 3.3% when compared with the six months ended June 30, 2021. Compared with the six months ended June 30, 2021, gross profit of US$149.8 million decreased by 33.8%; profit before income tax of US$20.7 million decreased by 77.7%; loss attributable to equity holders of the Company of US$11.1 million decreased by 113.4%; and adjusted EBITDA of US$158.1 million decreased by 25.7%.
Nexteer continues to proactively and diligently work with both of its OEM customers and supply partners to minimize the impact of ongoing industry headwinds in three key areas: Inflationary pressures, supply chain disruptions and OEMs’ shifting production schedules. For example, the current supply/demand imbalance has resulted in rising input costs for certain commodities such as steel, aluminum and more, as well as significant increases in both time and cost for logistics impacting sea freight capacity, container availability and port congestion. Furthermore, ongoing COVID-19 related issues and the conflict in the Ukraine have also impacted OEMs’ production schedules, which caused lower than expected revenues and inefficiencies in manufacturing operations. Nexteer continues to work with its customers to recover these cost increases with both contractual escalation agreements and other negotiations.
Technology Leadership, Expansion & Recognition
Nexteer remains focused on technology leadership and megatrend alignment for future growth. During the first half of 2022, Nexteer launched a new eDrive product line as a cost-effective approach to reducing emissions that combines the Company’s steering and driveline expertise. In addition, Nexteer along with its partner, Tactile Mobility, announced a new software product for Advanced Road Surface Detection and Tire Health Monitoring to improve vehicle health management, safety and performance.
Nexteer was also recognized as an Automotive News PACE Award Finalist for its Automated Steering Actuator, as well as a PACEpilot Finalist for its Advanced Road Surface Detection Software with Tactile Mobility.
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FORWARD-LOOKING STATEMENTS
Any forward-looking statements and opinions contained within this press release are based on current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions. Nexteer Automotive and its directors and employees assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this press release; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialize or turn out to be incorrect.
ABOUT NEXTEER
Nexteer Automotive (HK 1316) is the global leading motion control technology company accelerating mobility to be safe, green and exciting. Our innovative product and technology portfolio includes electric and hydraulic power steering systems, steer-by-wire systems, steering columns and intermediate shafts, driveline systems, eDrive and software solutions. The company solves motion control challenges across all megatrends – including electrification, software/connectivity, ADAS/automated driving and shared mobility – for more than 60 customers around the world including BMW, Ford, GM, RNM, Stellantis, Toyota and VW, as well as automakers in India and China. nexteer.com
