MAHLE METAL LEVE S.A. Mogi Guaçu (SP), May 11, 2017 - MAHLE Metal Leve S.A. (B3: LEVE3), a Brazilian auto parts company that manufactures and sells components for internal combustion engines and automotive filters, announces today its results for the first quarter of 2017. The Company's operating and financial information, unless otherwise indicated, is presented on a consolidated basis in BRL according to Brazilian Corporation Law.
1Q17 HIGHLIGHTSConference call and Webcast of Results:
Date: May 12, 2017
2:00 p.m. (Brazilian time), 1:00 p.m. (Eastern time)
Phone numbers:
Domestic OEM Sales grew 19.0%, the first increase after 13 consecutive quarters of drop;
Net Sales Revenue of R$ 540.5 million in the 1Q17, 5.6% below that reported in the 1Q16 and Ebitda margin of 14.9% (18.8% in the 1Q16);
The Net Debt /Ebitda ratio at the end of the 1Q17 was 0.54 times, while at the end of the 1Q16 the ratio was 0.62 times.
Brazil: +55 11 3193-1001
Brazil: +55 11 2820-4001
USA: +1 786 924-6977
Other: +1 888 700-0802
Password: MAHLE
Webcast: http://cast.comunique- se.com.br/MAHLE/1Q17
Website RI: http://ri.mahle.com.br/en Website MAHLE: http://www.br.mahle.com/en/
1 Ebitda adjustment in the 4Q16 due to impairment loss of R$ 188.6 million on goodwill of the piston rings business, and R$ 21.0 million mainly due to additional labor claims referring to the discontinuance of subsidiary MAHLE Hirschvogel Forjas S.A.
2 Net income adjustment in the 4Q16, as mentioned in item 1 above, due to reversal of R$ 64.1 million relating to income and social contribution taxes on the impairment loss.
TABLE OF CONTENTS
- MANAGEMENT'S COMMENTS 3
- ABOUT MAHLE METAL LEVE 3
- PERFORMANCE OF THE AUTOMOTIVE INDUSTRY 4
Performance of the Brazilian automotive industry 4
Performance of the Argentinean automotive industry 5
Vehicle production in the main export markets 6
- ECONOMIC AND FINANCIAL PERFORMANCE 6
Net sales revenue and market share by segment 6
OEM (original equipment manufacturer) sales 7
Aftermarket sales 7
Consolidated exports by region 7
Net sales revenue by segment 8
Gross margin 8
Selling, general and administrative expenses 8
Technology and product development expenses 9
Other operating income (expenses), net 9
Operating income measured by EBITDA 9
Net financial income (expenses) 10
Income and social contribution taxes 11
Net income 11
Capital expenditures 11
Indebtedness 12
- INVESTOR RELATIONS AND CAPITAL MARKETS 12
Performance of the Company shares and free-float shares 13
Shareholders' profile 13
- INDEPENDENT AUDITORS 13
- REPRESENTATION BY THE EXECUTIVE BOARD 14
- ACKNOWLEDGEMENTS 14 MANAGEMENT 14
- EXHIBITS 14
Balance sheet 14
Income statement 15
Cash flow statement 15
Management's Comments
The instable and uncertain environment that has caused strong impact on the Brazilian economic activity in the past two years began to show signs of recovery mainly due to the beginning of a cycle of cut in the base interest rate, which, besides turning credit cheaper, can bring a relief to the financial situation of families and companies by reducing debt expenses. To a certain extent, this change has slightly increased consumers' confidence thus positively impacting demand for durable goods, including vehicles.
Consequently, our domestic OEM sales increased 19.0% in the 1Q17, the first rise after 13 consecutive quarters of drops.
In the 1Q17, the Company reported net sales revenue of R$ 540.5 million (a fall of 5.6% compared to the 1Q16) resulting from a 16.7% drop in OEM exports and a 6.7% reduction in aftermarket sales, which were partially offset by the 19.0% increase in domestic OEM sales.
The graph below shows revenue distribution in the 1Q17 and 1Q16 in the markets where the Company operates:
In the 1Q17, operating income measured by EBITDA was R$ 80.7 million, with EBITDA margin of 14.9%.
The Net Debt/Ebitda ratio at the end of the 1Q17 was
0.54 times, while at the end of 1Q16 the ratio was
0.62 times.
We keep investing in research and development (in the 1Q17, the R&D investments accounted for 3.9% of net sales revenues) since we believe this is one of the main competitiveness drivers. To that end, collaboration with several players is the key point to increasingly prospect new state-of-the-art technologies.
Still there are important challenges to be overcome. However, we will face them with constant engagement of our employees, with focus on innovation, automation and cost management, always committed to developing products and solutions with the aim to maintain a long-term relationship with our stakeholders.
About MAHLE Metal Leve
We are a Brazilian autoparts company that manufactures and sells components for internal combustion engines and automotive filters. We manufacture products with state-of-the-art technology and the highest quality, and we continuously invest in the research and development of new products and production processes.
We have developed activities in Brazil since the 50's and have a broad portfolio of products and integrated solutions that in most cases have been customized jointly with our major customers. We operate in the OEM (Original Equipment Manufacturers) and aftermarket segments, serving automakers and large autoparts distributors and engine overhaul enterprises.
Our products are manufactured and sold in Brazil and Argentina, and also exported to over 60 countries, among USA, Germany, Mexico, Portugal and Spain, for a diversified portfolio of customers including General Motors, Volkswagen, Fiat, Ford, Daimler MBB, Opel, International, Cummins, Volvo, PSA Peugeot, John Deere, Renault, Scania, Caterpillar, Honda, Hyundai and others.
We own six industrial plants, five of which are located in Brazil, in the cities of Mogi Guaçu (two units), Indaiatuba, São Bernardo do Campo, all of which are located in the State of São Paulo, and in Itajubá, State of Minas Gerais. Our sixth plant is located in the city of Rafaela, Argentina. We have two distribution centers: one in the city of Limeira, State of São Paulo, and one in Buenos Aires, Argentina. We have a technology center located in the city of Jundiaí, State of São Paulo, which we believe is one of the largest and most well-equipped technology centers in Latin America for development of components and solution packages for internal combustion engines. This center allows us to add value to and meet the requirements of our customers in a customized and efficient manner, and develop innovative new product technologies and processes.
We belong to the German autoparts group MAHLE, or MAHLE Group, which was established in 1920 and is one of the most traditional groups in the autoparts industry in the world. MAHLE Group, including the Company, currently has more than 170 industrial plants in 35 countries on five continents, 15 research and development centers and approximately 76 thousand employees.
As part of the MAHLE Group, a group with global operations, we are able to exchange knowledge, have constant access to the latest technology and develop new products together with our customers, which we believe are key factors to the high level of market penetration and customer loyalty that we have achieved.
Performance of the Automotive Industry
3.1 Performance of the Brazilian automotive industry
Brazilian vehicle production in the 1Q17 grew 24.8%, and sales of the Brazilian automotive industry
decreased 1.3% compared to the same period of 2016.
According to the Brazilian Association of Motor Vehicle Manufacturers (ANFAVEA), vehicle inventory recorded at the end of the 1Q17 totaled 218.6 thousand units, corresponding to 35 days of sales. In the same period of the previous year, vehicle inventory was equivalent to 43 days of sales (259.0 thousand units).
The graph below shows the changes in the production, sales and total inventory of national vehicles in the first three months of 2017 compared to the 1Q16:
MAHLE Metal Leve SA published this content on 11 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 May 2017 20:36:30 UTC.
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