Nexteer Automotive has reported financial results for the six-month period ended June 30 that were severely and adversely impacted by the COVID-19 pandemic. H1 revenues were down by 33.9% and profit shrunk to just US$1.3m compared with US$131.1m in the same period of 2019.
Nexteer said it had to contend with the suspension of production across the company’s entire global manufacturing footprint and related operations during the period. During the first half of 2020, global OEM production fell 33% when compared with the same period in 2019, with the second quarter of 2020 lower by 45% as the health crisis expanded across the globe and nations implemented measures to stem the spread of the disease.
Nexteer reported revenue of US$1.211 billion for the first six-months of 2020 which was lower by 33.9% compared with US$1.832 billion for the same period in 2019, reflecting significantly lower OEM customer demand and production suspensions as a result of the COVID-19 health crisis. Profit attributable to equity holders for the first six-months of 2020 fell to US$1.3 million compared with US$131.1 million for the same period in 2019, as cost actions provided only a partial offset to the dramatically lower demand environment.
“The COVID-19 pandemic continues to impact Nexteer in a multitude of ways – from implementing new health and safety protocols to protect our employees, to adjusting to new OEM sourcing and production launch timelines and more,” said Guibin Zhao, CEO of Nexteer Automotive.
“During the first half of 2020, we executed cost and investment controls to help mitigate the financial impact of the sudden industry-wide loss of OEM vehicle production and the shutdown of our facilities in every region we operate in. We are cautiously optimistic that the second half of 2020 will reflect a recovery in OEM vehicle production compared with the first half of the year,” said Zhao.
“Nexteer has a robust, proven technology and product portfolio to support industry megatrends like Electrification, Advanced Safety and Performance, Software and more and is well-positioned to support OEMs’ priorities as the industry moves through these challenging times. As part of our thoughtful alignment with these megatrends, we are in-tune with many OEMs that have announced adjustments to their future mobility investments and priorities in response to the COVID-19 pandemic.”