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
($000s, except per share amounts)
|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