Nemak reports $1131 million sales in Q122, up from 8.9% Y-o-Y following higher aluminium prices

Nemak, a multinational automobile components manufacturer based in Garca, Mexico, announced $1,131 million in sales in the first quarter of 2022, up 8.9% year over year due to higher aluminium prices. Nemak has recently expanded into the field of structural components and electric car components.

Nemak intends to build three new factories in Europe and North America to meet the joining and assembly needs of these goods, with an estimated total expenditure of over $200 million. Nemak also got contracts of roughly $390 million per year in 1Q22, out of which 90 percent of the sum represented new business to manufacture parts for completely electric automobiles. The Company was selected GM Supplier of the Year for the 20th time on March 17, cementing its position as one of the most well-known suppliers in the award's history.

Volume fell 6.7 percent year over year in 1Q22, owing to lower vehicle production by Nemak customers as a result of interruptions in their worldwide supply chains, including semiconductors. EBITDA declined 32.0 percent year over year in 1Q22, owing principally to increased energy prices and worldwide inflationary pressures, as well as, to a lesser extent, reduced volume impacts. As a result, EBITDA per equivalent unit fell 26.6 percent year over year to US$11.6 in 1Q22.

As a result of these circumstances, 1Q22 Operating Income was down 59.6% year over year. In 1Q22, Nemak's Net Income was $6 million, compared to $40 million in the same period the previous year, due to the same factors that influenced Operating Income.

source https://www.alcircle.com/news/nemak-reports-1131-million-sales-in-q122-up-from-8-9-y-o-y-following-higher-aluminium-prices-79308