Exco Technologies Limited - Results for First Quarter ended
December 31, 2012
TORONTO, Jan. 30, 2013 /PRNewswire/ - Exco Technologies
Limited (TSX-XTC) today announced results for its first quarter
ended December 31, 2012.
|
|
|
|
Three Months
ended
December 31
($000s, except per share amounts) |
|
2012 |
2011 |
Sales |
58,686 |
58,486 |
Net income |
5,787 |
5,286 |
Basic earnings per share |
$0.14 |
$0.13 |
Diluted earnings per share |
$0.14 |
$0.13 |
Common shares outstanding |
40,649,195 |
40,925,227 |
Consolidated sales for the first quarter ended
December 31, 2012 were $58.7 million - a slight increase of $200 thousand or approximately 0.5% compared to
last year. Surging light vehicle production continued to
support our sales in North America
and numerous new program launches in Europe also supported sales and offset eroding
volumes on existing European programs.
Consolidated net income for the first quarter
was $5.8 million or $0.14 per share compared to consolidated net
income of $5.3 million or
$0.13 per share in the same quarter
last year. The improvement in the current quarter's earnings was
led by the Automotive Solutions segment with $3.8 million in pretax income compared to
$3.3 million pretax income or 14%
increase from the same quarter last year. The Casting and Extrusion
segment reported segment pretax income in the first quarter of
$5.6 million compared to segment
pretax income of $5.4 million in the
same quarter last year - a 4% increase.
Successful cost containment in recent years and
program rotation has positioned Polytech and Neocon for higher
profitability. Improving light vehicle production volume has also
improved overhead absorption. In the case of Polydesign, the
smooth launch of new products has not only provided more throughput
but also higher added value product mix and modestly higher
earnings.
In the Casting and Extrusion segment the
earnings improvement was led by the large mould group which
continued to benefit from improved performance at Edco and Excoeng
Mexico compared to a combined loss for these two entities last year
of 1 cent per share. Extrusion
earnings in the current quarter were consistent with prior year -
though mildly impacted by integration and setup costs in
Colombia. The recent acquisition
in Colombia, which started
production in January 2012, incurred
losses of approximately 1 cent per
share in the current quarter. Earnings at Castool improved slightly
on higher sales.
Operating cash flow before net changes in
non-cash working capital in the first quarter increased to
$8.0 million from $6.8 million in the same quarter last year. Exco
ended the quarter with cash on hand of $29.5
million and no bank debt.
The overall outlook for Exco over the next
several quarters has not materially changed from the last
quarter. The two major trends of strong light vehicle
production volumes in North
America and steady introduction of new or refreshed vehicles
and powertrain systems by virtually all OEMs remain intact.
These trends continue to benefit our components businesses, Castool
and our large mould businesses. Our large mould business in
particular is experiencing strong demand from its die cast
customers who are themselves experiencing high production
requirements. The emphasis at these operations are
increasingly on maintaining sufficient inventory and meeting
delivery dates. At the extrusion businesses the focus will be
on integrating our latest acquisition in Texas, executing the recently announced
greenfield extrusion plant development in Sorocaba, Brazil and bringing our recently acquired
operation in Colombia to
profitability.
In Europe the
situation is much more subdued as production volumes are expected
to contract further in 2013 - although to what extent continues to
be unclear. New program launches over the last several
quarters have insulated Polydesign from bleak market conditions in
Europe and are expected to do so
throughout the rest of fiscal 2013. The dire overcapacity
situation in Europe and erratic
OEM production scheduling leads Exco management to expect overall
results for Polydesign to be generally in line with last year's
performance.
(For further information and prior year
comparison please refer to the Company's First Quarter Interim
Financial Statements in the Investor Relations section posted at
www.excocorp.com. Alternatively, please refer to
www.sedar.com)
Exco Technologies Limited is a global
supplier of innovative technologies servicing the die-cast,
extrusion and automotive industries. Through our 11 strategic
locations, we employ 2,216 people and service a diverse and broad
customer base.
To access the live audio webcast, please log on to
www.excocorp.com or directly to the web cast at
http://event.on24.com/r.htm?e=563694&s=1&k=FF56C7C8937AA6E9DD3B66436D9E8EDA
a few minutes before 4:30 PM on
January 30, 2013. Questions can
be submitted via the Q&A box on the webcast console.
Microsoft Media Player is required for access. For
those unable to listen on January 30,
2013, 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 especially with respect to growth and financial
performance of the Company's business units, contribution of our
businesses (particularly our start-up business units in
Mexico and Colombia), input costs and our operating
efficiencies. 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. These assumptions include, among other things, the
number of automobile vehicles produced in North America and Europe, the rate of economic growth in
North America and Europe and BRIC countries, investment by OEMs
in drivetrain architecture and structural parts and currency
fluctuations (particularly with respect to the US dollar, Euro and
Mexican Peso). 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 2012 Annual Report, in our 2012 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 will update its
disclosure upon publication of each fiscal quarter's financial
results and otherwise 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