- China Automotive Systems (CAAS -0.9%) reports net sales declined 3.9% in Q4, due to the exceptionally strong Chinese auto market in the 4Q16 and the production for new products targeting the Company's North American customers reaching its full capacity.
- Gross margin rate squeezed 310 bps to 11.5%, primarily due to the decrease in net sales and change of product mix.
- Selling expense rate grew 140 bps to 4.7%.
- The company expects FY2018 revenue to be $510M.
- Mr. Qizhou Wu, chief executive officer of CAAS, commented, "Our growth in 2017 was led by higher sales of our new advanced hydraulic products into the North American market and higher sales of hydraulic products for the commercial vehicle market in China. Our sales to North America grew by 51.4% and accounted for 16.9% of total sales in 2017. Truck sales in Chinagrew by 16.9% in China, led by record sales of 1.1 million units of heavy-duty trucks. With our large and broad line of steering products, we are well positioned to take advantage of growth opportunities in a number of automotive segments."
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