Gestamp improved elements of its performance in the first nine months of the year, the Spanish firm says in its third-quarter report monitored by Kallanish. The company increased its revenue and Ebitda despite the challenging market environment, it says, but net profits dipped significantly. Gestamp is a major steel user, supplying components to the global automotive sector.
Gestamp has updated its outlook for the rest of 2019, as expected revenue growth will be mid-single-digit instead of high single-digit. Ebitda is estimated to rise year-on-year, but not at a rate higher than revenue growth.
“In order to adapt to the current uncertain auto market environment, Gestamp has moderated its capital expenditure by being more selective in the opportunities pursued. However, we expect to continue to outperform the market growth rate but with a focus on free cash flow generation,” Gestamp ceo Francisco López Peña says.
The company remains focused on cost efficiencies, capex moderation, headcount reduction in certain regions and optimisation of its operations, the executive adds.
During the first nine months of the year, Gestamp improved performance in all its regions in terms of revenue with the only exception being the Western European market.
Western European revenue fell by -4.4% on-year to €2.86 billion ($3.15 billion) in the first nine months, while in Eastern Europe it grew by 15.6% to €972 million. Mercosur sales rose 5.0% to €447.4m. North America and Asia market sales were up by 27.3% and 10.7% respectively to €1.48 billion and €797.5m.
Nine-month consolidated revenue amounted to €6.57 billion, up 6.8% on-year, while Ebitda rose by 10.8% to €755m. Net profit was down however by -21.5% at €128m.
