Following the year’s third-quarter results, Nemak updated its estimated operating cash flow for this year and said it would be $640 million, a 9.4 percent increase over the midrange expected in previous guidance.
“Given progress to date, the company expects a flow of $640 million driven by both recurring and isolated trade negotiations, which compares to previously announced guidance of $570 million to $600 million,” Nemak said.
Gerardo Cevallos, deputy director of fundamental analysis at Vector Casa de Bolsa, said the new expected flow would represent growth of 10.7 percent compared to 2023.
“Nemak’s previous guidance pointed to a decline of between 1.4 percent and growth of 3.8 percent.” The station’s new management is 8.4% above consensus expectations,” the specialist added.
He explained that the company has explained that the increase to management is due to the benefits of trade negotiations it is conducting, which it hopes to conclude this year.
“In these negotiations, Nemak seeks to: pass on labor cost inflation to its customers, increase prices of products that do not meet their profitability targets and receive compensation for underutilized capacity in the electric vehicle and structural components segment he pointed out.
