TORONTO, Nov. 25 /PRNewswire-FirstCall/ - Exco
Technologies Limited (TSX-XTC) today announced results for its
fourth quarter ended September 30,
2010. In addition, the Company announced that its quarterly
cash dividend will be increased 25% to $0.025 per share and will be paid December 23, 2010 to shareholders of record on
December 15, 2010. The dividend is an
"eligible dividend" in accordance with the Income Tax Act of
Canada.
|
|
Twelve Months
ended |
Three Months ended |
|
September 30 |
September 30 |
|
($000s, except per share amounts)
|
|
2010 |
2009 |
2010 |
2009 |
Sales |
165,512 |
143,716 |
45,929 |
37,694 |
Net income (loss) |
10,077 |
(17,666) |
2,449 |
364 |
Basic and diluted earnings (loss) per share |
$0.25 |
($0.43) |
$0.06 |
$0.01 |
Common shares outstanding |
40,912,823 |
40,666,176 |
40,912,823 |
40,666,176 |
In the fourth quarter sales were $45.9
million - a $8.2 million or
21.8% increase over $37.7 million in
the prior year. This marks the continuation of an improving sales
trend which has seen sales improve for four consecutive quarters.
The Casting and Extrusion segment recorded higher sales of
$30.1 million compared to
$26.0 million last year - an increase
of over 15%. This is mostly attributable to strong sales in the
final months of the quarter by the large mould group. Castool sales
were largely consistent with last year and extrusion tooling sales,
although lower than last year, only slightly offset the segments
overall increase. The Automotive Solutions segment experienced a
36% increase in sales from $11.7
million last year to $15.9
million this year despite the closure of Neocon USA which
had sales of $ 1.8 million last year.
Sales advanced at all three business units in this segment although
the bulk of the activity was at Neocon and Polytech.
The Company reported fourth quarter net income of $2.4 million compared to net income of
$364 thousand in fiscal 2009. The
sales advance has been primarily responsible for improving overhead
absorption at both the Automotive Solutions and the Casting and
Extrusion segments. Earnings improvement took place mostly in the
Automotive Solutions segment where pretax earnings increased by
$1.7 million to $1.1 million for the
quarter compared to a segment loss of $631
thousand last year. This segment experienced a combination
of improving production volumes on existing programs and
considerable new program launches by Neocon and Polytech in
particular. The Casting and Extrusion segment also advanced
earnings by $1 million in the quarter
to $2.5 million for the quarter
compared to $1.5 million last year.
The increase in earnings in this segment was principally driven by
the large mould business which is adapting to meet aggressive
demand by OEM and Tier 1 customers for powertrain moulds and
maintenance. Earnings were, however, impacted by start up
losses at the new large mould maintenance facility in Queretaro, Mexico and production
inefficiencies associated with the closure of the Aludie extrusion
die plant in Newmarket,
Ontario.
Gross margin in the quarter was 23.3% compared to 20.7% last
year reflecting the impact of lower costs this year end and better
overhead absorption associated with higher sales. The quarter's
gross margin was, however, impacted by delivery of several large
moulds requiring higher than anticipated production costs that were
not recoverable from customers. Exco continues to have no bank debt
and closed the year with cash deposits of $20.2 million compared to cash deposits of
$11.4 million last year.
During the fourth quarter the Company continued experiencing the
sales and earnings momentum that has been consistently building
throughout the year. With both automotive tooling and component
sales convincingly recovering in North
America, the Company's earnings and cash position should
continue to grow. During the upcoming year, Exco's investment in
Queretaro Mexico, its
consolidation of the extrusion tooling plants and its acquisition
of Allper AG in Switzerland in
October should also bear fruit. This positive business outlook
coupled with Exco's debt free situation underlies the Board's
decision to increase the Company's dividend this quarter by 25% to
$0.025 per share.
"While 2009 was certainly an extraordinary year which I was
pleased to see end, 2010 has been remarkably strong at most of our
businesses," said Brian Robbins,
President and CEO of Exco. "We are sufficiently comfortable with
the Company's business prospects to increase the dividend at this
time even as we continue to focus on our underperforming Polydesign
and extrusion tooling businesses which should join our other
businesses in contributing more in the year ahead."
(For further information and prior year comparison please refer
to the Company's Fourth Quarter Interim Financial Statements in the
Investor Relations section posted at www.excocorp.com.
Alternatively, please refer towww.sedar.com after November 26, 2010.)
Exco Technologies Limited is a global supplier of innovative
technologies servicing the die-cast, extrusion and automotive
industries. Through our 10 strategic locations, we employ 1,796
people and service a diverse and broad customer base.
Management will hold a conference call to
discuss the fourth quarter results on Friday
November 26, 2010 at 1:30 pm
(Toronto Time). The local dial in number for the call is (647)
427-7450 or toll free
1-888-231-8191. To access the live audio webcast,
please log on to www.excocorp.com, www.q1234.com or
http://www.newswire.ca/en/webcast/viewEvent.cgi?EventID=3318920
a few minutes before the event. Real Player is
required for access. For those unable to participate on
November 26, 2010, an archived
version will be available on the Exco website.
This news release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities laws. We use words such as "anticipate", "plan", "may",
"will", "should", "expect", "believe", "estimate" and similar
expressions to identify forward-looking information and statements.
Such forward-looking information and statements are based on
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
to be relevant and appropriate in the circumstances. Readers are
cautioned not to place undue reliance on forward-looking
information and statements, as there can be no assurance that the
assumptions, plans, intentions or expectations upon which such
statements are based will occur. Forward-looking information and
statements are subject to known and unknown risks, uncertainties,
assumptions and other factors which may cause actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed, implied or
anticipated by such information and statements. These risks,
uncertainties and assumptions are described in the Company's
Management's Discussion and Analysis included in our 2009 Annual
Report, in our 2009 Annual Information Form and, from time to time,
in other reports and filings made by the Company with securities
regulatory authorities.
While the Company believes that the expectations expressed by
such forward-looking information and statements are reasonable,
there can be no assurance that such expectations and assumptions
will prove to be correct. In evaluating forward-looking information
and statements, readers should carefully consider the various
factors which could cause actual results or events to differ
materially from those indicated in the forward-looking information
and statements. Readers are cautioned that the foregoing list of
important factors is not exhaustive. Furthermore, the Company
disclaims any obligations to update publicly or otherwise revise
any such factors or any of the forward-looking information or
statements contained herein to reflect subsequent information,
events or developments, changes in risk factors or
otherwise.
SOURCE Exco Technologies Limited
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