Martinrea’s 2018 sales in Europe operating segment up 8.6% due to the launch of aluminium structural components work

Martinrea International Inc. announced its financial results for the year ended December 31, 2018. The company’s consolidated sales stood at $3,662.9 million, down $27.6 million or 0.7% from $3,690.5 million in 2017. Martinrea reported record Adjusted EBITDA of $461.2 million.

The company designs, manufactures, and sells metal parts, assemblies and modules, fluid management systems, and aluminium products primarily for the automotive industry in North America, Europe, and internationally. 

Sales in the Company’s North America operating segment decreased $86.3 million to $2,827.5 million from $2,913.8 million in 2017, due to lower year-over-year production volumes on certain light-vehicle platforms.

Rob Wildeboer, Executive Chairman, said: “In 2018, not only did we have a record year in terms of financial performance, but we did so in an automotive environment that was fairly flat in terms of production in our key markets while experiencing some real challenges in terms of trade negotiations and tariffs.”

“The signing of the USMCA, and its ratification in some form, is positive for our industry and we believe for suppliers such as us.  The impact of the steel and aluminium tariffs placed by the U.S. and Canada is not helpful to the industry but we believe the tariffs will be removed sometime this year.” 

Sales in the Company’s Europe operating segment stood at $713.9 million, up $56.9 million or 8.6% from $657.0 million in 2017. The increase was due to the launch of new programs during or subsequent to the year ended December 31, 2017, including a 2.0L aluminium engine block for Ford and the ramp up of new aluminium structural components work and the new V8 AMG engine block for Daimler.

Sales in the Company’s Rest of the World operating segment increased $3.2 million or 2.5% to $135.3 million from $132.1 million in 2017. The increase was due to the launch of new aluminium structural components work for Jaguar Land Rover in China, which began to ramp up in the first quarter of 2018; higher year-over-year production sales in the Company’s operating facility in Brazil; and a $4.7 million increase in tooling sales. 

Net Income increased $26.3 million to $185.8 million, from $159.5 million in 2017. Adjusted net income increased to $193.2 million, from $165.5 million in 2017.

 “We expect 2019 to be a record year for us in terms of financial performance, with adjusted operating income margins above 8%; and we anticipate continued operating income margin improvement to above 9% in 2020 and revenues next year to exceed $4 billion,” Rob Wildeboer said.