Mexican automotive supplier Nemak’s third-quarter earnings saw declines in revenue, sales volume and net income.
CEO Armando Tamez Martinez said in a Oct. 18 statement that the results reflect labor cost inflation, the repricing of products and profitability shortfalls.
Nemak is one of the first auto suppliers to report third-quarter results, which analysts often consider bellwethers for the performance of the broader supply chain.
The supplier of powertrain and body structure components reported a net income of $5 million for the quarter, down from $25 million in the same period of 2023. This decline was influenced by noncash foreign exchange losses related to euro-denominated liabilities, the company said in its earnings statement.
Production volume shrank by 9.3 percent to 9.6 million equivalent units, primarily because of reduced production in North America and a decline in the production of EV components, the company said.
Earnings before interest, taxes and other adjustments increased 3.2 percent to $169 million compared with the third quarter of 2023. The company attributes this to improving operational efficiency and developments in negotiations with its customers.
Nemak, of Garcia, Mexico, ranks No. 54 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $4.99 billion in 2023.
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Source: autonews.com
