NSG Group reported it is recovering from the decline it faced in mid-2020, largely due to COVID-19, in its third quarter consolidated financial report. According to the company, economic activity continues to be impacted significantly by the pandemic, although a rising number of cases towards the end of the third quarter is being countered by the imposition of social rather than industrial lockdowns, with a more limited impact on demand for the Group’s products.
“The automotive markets also recovered from the low levels experienced earlier in the year, with demand during the third quarter being similar overall to the previous year,” a portion of the financial report reads.
NSG’s automotive business recorded cumulative revenues of $1,643.62 million and an operating loss of $10.14 million. In the automotive business’ revenues and profits were below the previous year, which the company attributes to the pandemic during the first quarter of 2020. “In the OE business, demand has recovered steadily since April and May, however, and third quarter, three-month, results were above the previous year. In the AGR business, demand improved from the second quarter with an easing of lockdown restrictions,” a portion of the report reads.
According to the report, Americas represent 33% of the Group’s automotive sales. Vehicle production rebounded in North America during the second quarter, which the company said was driven by customers recovering inventory levels and improving vehicle sales. Production in South America also staged a recovery although remains at a relatively low level.
Europe represents 42% of the Group’s automotive sales. Its cumulative revenues and profits fell from the previous year too. The company noted it was also a result of the pandemic. The Group’s automotive facilities have operated broadly in line with the Group’s customers’ facilities, with production restarting towards the end of the first quarter and then steadily increasing from the second quarter, according to the report.
Asia represents 25% of the Group’s automotive sales, and its cumulative revenues and profits were also below the previous year. The Group’s automotive facilities have generally remained operational throughout the year, benefitting from increasing volumes from the second quarter.
Editor’s Note: The financials were converted from Japanese yen to U.S. dollars on February 4, 2021.