Gestamp reduces debt despite fall in profits
Automotive components group Gestamp saw both profits and sales reduce last year as it was hit by the coronavirus crisis.
The Spanish group, which has a Staffordshire factory at Four Ashes, near Wolverhampton, had earnings before tax of £651.3 million from £922.3m in 2019.
Revenue fell 17.8 per cent from £7.79 billion to £6.41bn, but it reduced net debt to £1.77bn.
The group said 2020 had been a year of two halves, implementing Covid emergency related measures in the first half and executing cost control measures in the second six months even with a pick up in sales volumes
The multinational company specialises in the design, development and manufacture of highly engineered metal components for the automotive industry.
During 2021, Gestamp expects revenue to outperform the global auto production market and will focus on executing its transformation plan
Executive chairman Francisco Riberas said: “In an unprecedented market environment we have moved fast and demonstrated our resilient business model by preserving our balance sheet and generating positive free cash flow, as we already did in the 2008-2009 crisis.
“Gestamp will continue to grow with the focus on FCF generation by taking advantage of its invested capital and new technologies, supporting the needs of our customers in their road towards electrification.
Gestamp is present in 24 countries with more than 100 manufacturing plants, 13 research and development centres and a workforce of more than 40,000 worldwide including about 800 at Four Ashes.
