Exco Technologies Limited - Fourth Quarter ended September 30, 2010 - Quarterly Dividend Declared
November 25 2010 - 5:00PM
PR Newswire (Canada)
TORONTO, Nov. 25 /CNW/ -- TORONTO, Nov. 25 /CNW/ - 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 $0.25 ($0.43) $0.06 $0.01 (loss) per share 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.
%SEDAR: 00003420E
pbSource:/bb /bExco
Technologies Limited (TSX-XTC)br/
bContact:/bb /bPaul
Riganelli, Vice-President, Finance and Chief Financial Officerbr/
bTelephone:/bb /b(905) 477-3065 Ext. 7228br/
bWebsite:/bb /ba
href="http://www.excocorp.com/"uhttp://www.excocorp.com/u/a/p
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