Grupo Industrial Saltillo (GIS) has managed to weather the storm that has plagued the automotive industry since the end of 2020: the shortage of semiconductors. The company achieved positive results despite the fact that one of its main businesses, the manufacture of suspensions, brakes and chassis, is limited by the semiconductor crisis.
In the third quarter, GIS revenues increased 23% to 305 million dollars, while its operating cash flow (Ebitda) rose 69% to 38 million dollars.
The results are mainly due to the performance of Draxton, the unit that designs, manufactures and markets products for the automotive industries; while Cinsa, the business dedicated to cookware and pewter dishes, has been affected by the decrease in the purchasing power of consumers due to inflation.
The disincorporation process of the Vitromex business, announced on June 3, is still under review by the authorities.
From July to September, the firm registered a 33% and 80% increase in revenues and Ebitda. “Which confirms the resilience and positioning of the company. The startup of the investment projects announced in the last 15 months will boost EBITDA for the next six quarters,” said Manuel Rivero, the company’s CEO.
Grupo Industrial Saltillo announced in a relevant event that it will begin a transition in the general management so that, as of January 1, 2023, Jorge Rada assumes the position as general director.
Although the shortage of semiconductors limited global vehicle production in the last 18 months, “analysts continue to forecast a gradual recovery in automotive production supported by the increased supply of semiconductors, in meeting pent-up demand, and in replenishing the level inventory of the automotive chain. The foregoing, together with the start of investments in process and the allocation to Draxton of 153 million dollars of new business so far this year, allows sustaining the organic growth of the next two years”, assured Rivero.
Another of GIS’s businesses, Vitromex, posted a 12% rise in sales and a 7% drop in Ebitda. While Cinsa, the business dedicated to kitchen products, suffered from the rise in prices and registered a drop of 19% in sales and 54% in Ebitda.