Innovative Composites Provides Update on Transportation Product Sales
February 01 2012 - 7:00AM
PR Newswire (Canada)
- Revenue ramp up exceeding management expectations - TORONTO, Feb.
1, 2012 /CNW/ - Innovative Composites International Inc. (OTCQX:
ICIZF), ("ICI" or the "Company"), a producer of patented protected
composite products targeting the multi-billion dollar prefabricated
modular housing and transportation markets, reported today that the
revenue growth in its non-housing side of the business is
progressing faster than originally anticipated. "The speed in which
our non-housing programs are ramping up and generating significant
revenues is indicative of the demand for our products in the
marketplace," said Terry Ball, President and CEO of ICI. "Most of
these products require little of our engineering resources which
allow us to focus on the housing market and the South Carolina
facility, while making a positive contribution to our bottom line."
Automotive Aftermarket In June 2011, ICI announced its first
purchase orders for the supply of composite panels to a leading
North American automotive aftermarket company. The program was
expected to achieve approximately $5 million in revenue annually
within nine months. As of today, sales of composite panels to this
customer have already reached $4.2 million on an annualized basis
and continue to grow each month. Once at full capacity, the Company
expects the program to have a five to six year life span. ICI
panels replace a conventional material previously used by the
customer and offer superior strength to weight ratio, are
impervious to weathering, rot and corrosion and are completely
recyclable. Tractor Trailer Market Through the acquisition of
Eleison, LLC, ICI now has the equipment and patents to produce
fiber reinforced thermoplastic skin material at one of the lowest
cost points in the industry. The purchase of Eleison also created
relationships with several new customers in the transportation
industry located in the USA and in Europe. The product is being
used to reinforce interior headliner and load floor applications.
ICI has completed shipments to all of the new customers and is
currently in the quoting process on several additional programs for
the same material. ICI believes there is significant potential to
grow revenue for this product from the $2 million annually,
previously recorded by Eleison. Management believes the product
with the highest volume potential is likely a program to supply
ICI's composite panels to a manufacturer of exterior aerodynamic
package for trucks, known in the industry as "trailer tails".
According to ICI's customer, the product provides fuel savings of
up to six percent compared to tractor trailers without an
aerodynamic package. The product is approved by the US Department
of Transportation and is quickly gaining acceptance in the
marketplace. High fuel prices and new legislation in the US and
Europe are significant drivers of demand for transportation
efficiency offerings and ICI believes its products are well suited
for this market because of the superior strength to weight ratios.
About Innovative Composites International Inc. Headquartered in
Toronto, Canada, Innovative Composite International Inc.
(OTCQX: ICIZF) is a high-tech engineering and manufacturing company
that is successfully commercializing a patent protected line of
state-of-the-art composite products targeted at the multi-billion
dollar transportation and prefabricated modular housing markets.
Led by a team of commercialization experts ICI has adopted a tier
two business model: It designs and manufactures game-changing
products and partners with established companies in its target
markets to utilize their sales channels for faster product
roll-out. This strategy and the superior characteristics of the
products have resulted in rapidly growing sales in both markets and
opened up opportunities that could lead to large scale contracts on
an ongoing basis. To find out more about ICI please visit our
website at: www.innovativecompositesinc.com. Follow us on
www.waggle.ca Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. "Statements made in this press release
include forward-looking statements that involve a number of risks
and uncertainties. These statements relate to future events or
future performance and reflect management's current expectations
and assumptions. A number of factors could cause actual events,
performance or results to differ materially from the events,
performance and results discussed in the forward-looking
statements, such as the economy, generally, competition in its
target markets, the demand for ICI's products and the availability
of funding. These forward-looking statements are made as of the
date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events
or results could differ materially from ICI's expectations and
projections." Innovative Composites International Inc. CONTACT:
Ilja Troitschanski or Philip DaleChief Financial Officer TMX
Equicom(416) 646 0754 (416) 815 0700 ext
253ilja@innovativecompositesinc.com pdale@equicomgroup.com
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