Profits up at Staffordshire car parts maker Gestamp despite third quarter slowdown
Gestamp, the Spanish-based car parts manufacturer with factories in Staffordshire, has unveiled rising sales and profits.
The company saw revenues rise 8.9% at constant exchange rates in the first nine months of this year, up to 6.155 billion euros – £5.4 billion – while earnings jumped by 16.8% to 681 million euros – £600m.
Net profit rose 7% to 163m euros, or £144m.
The multinational has 107 factories in 21 countries, including a site at Cannock and a newly opened £50 million factory in Four Ashes. Gestamp is opening six new facilities this year, one in Japan.
The company said growth this year has been driven by good volumes of existing programmes and the ramp-up of new projects, although this was partially offset by deeper impact of foreign exchange headwinds.
But the third quarter of the year has been more challenging than expected, with growth slowing down.
During the third quarter of 2018, sales have been hit by the uncertainties in the auto market around ongoing auto market uncertainties which continue to be around new EU diesel testing, trade tensions, the slowdown in China and the currency exchange impact in emerging markets.
Despite "short term uncertainties" Gestamp expects vehicle production to grow faster in 2019.
Chief executive Francisco López Peña said: “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.
“OEMs (original equiment manufacturers such as car makers) continue to focus on the launch of new EV (electric vehicle) programmes which should provide business opportunities for which Gestamp is well positioned given its expertise in offering lightweight solutions,” he added.
