• Year-to-date Sales increased 22%
• Year-to-date Profits increased 70%
• Quarter-end Cash on hand increased 45% to $22.4 million
• Quarterly dividend increased by 25%
• No bank debt

TORONTO, April 25, 2012 /PRNewswire/ - Exco Technologies Limited (TSX-XTC) today announced results for its second quarter ended March 31, 2012.  In addition, the Company announced the increase of its quarterly dividend from $0.03 per common share to $0.0375 per common share which will be paid on June 29, 2012 to shareholders of record on June 13, 2012.  The dividend is an "eligible dividend" in accordance with the Income Tax Act of Canada.

Consolidated sales for the second quarter ended March 31, 2012 were $63.2 million - an increase of $8.9 million or 16.5% compared to last year.  Exco experienced strong demand for its products and this quarter marks the continuing trend of growing sales over the last three years.  Year-to-date sales were $121.6 - an increase of $22.2 million or 22.3% compared to last year.

During the second quarter, the Casting and Extrusion segment reported sales of $39.7 million - an increase of $4.9 million or 14.1% compared to the same quarter last year and sales in the Automotive Solutions segment in the second quarter were $23.4 million - an increase of $4.0 million or 20.7% from the same quarter last year.  Sales increased at all business units in both segments as automotive and industrial markets created strong demand for our products - particularly in the Americas and Asia. Underpinning this strong demand is continued recovery of light vehicle production levels particularly in North America and continued launch of new powertrain architectures by most OEMs.

Consolidated net income for the second quarter was $6.5 million or $0.16 per share compared to consolidated net income of $4.9 million or $0.12 per share in the same quarter last year. Year-to-date consolidated net income was $11.8 million or $0.29 per share compared to consolidated net income of $6.9 million or $0.17 per share last year.

Pretax income for the Casting and Extrusion segment in the second quarter was $5.6 million compared to segment pretax income of $4.6 million in the same quarter last year and the Automotive Solutions segment reported segment pretax income in the second quarter of $4.3 million compared to segment pretax income of $3.4 million in the same quarter last year.  Year-to-date, the Casting and Extrusion segment reported pretax income of $11.0 million compared to segment pretax income of $5.5 million last year and the Automotive segment reported pretax income of $7.6 million compared to segment pretax income of $6.0 million last year. Losses at Edco and our new large mould maintenance facility in Queretaro, Mexico decreased significantly in the current quarter due to improved sales and our start up Exco Colombia operation has successfully commenced shipping of commercial volumes of quality product in the quarter. Polydesign continued improving its earnings as new product launches have provided not only the necessary throughput but also higher added value product mix than its traditional seat cover program and the volume reduction on existing European programs has not materialized to the extent that was expected.

Consolidated gross margin in the second quarter increased to 28.1% from 27.8% in the same quarter last year. Year-to-date gross margin also increased to 28.3% from 26.1% last year. The improvement in the current quarter and year-date was mainly from the Casting and Extrusion segment and gross margin at the Automotive Solutions segment remained consistent both in the current quarter and year-to-date compared to last year.

Cash provided by operating activities increased to $8.1 million in the second quarter from $1.3 million last year and $14.8 million this year-to-date compared to $823 thousand last year.  These increases are primarily the result of improved earnings.

The Company's cash position at the close of the second quarter ended March 31, 2012 increased to $22.4 million from $15.4 million at the beginning of the year reflecting continuing improvement of earnings in the current year.  This demonstrates that the build-up in working capital caused by climbing sales over the last numerous quarters has begun to level off.

The overall outlook for Exco over the next several quarters has not materially changed and remains very positive.  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.  However, the company has also observed a definite improvement in North American industrial markets which has benefited our extrusion tooling businesses.  In Europe our expectation of weakening demand for our Polydesign products has not materialized to the extent anticipated.  We remain cautious about the European automotive market but note that German OEMs do not appear to be under pressure to the same degree as are other European OEMs.

The comparative amounts in the above analysis have been adjusted to reflect the impact of the Company's transition to IFRS effective October 1, 2010. Refer to Note 13 to the interim consolidated financial statements for the second quarter for a full reconciliation of the comparative period's interim consolidated financial statements under GAAP to IFRS.

(For further information and prior year comparison please refer to the Company's Second 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 10 strategic locations, we employ 2,169 people and service a diverse and broad customer base.

To access the live audio webcast, please log on to www.excocorp.com, or http://www.newswire.ca/en/webcast/detail/953233/1020755 a few minutes before the event.  Real Player is required for access.  For those unable to participate on April 26, 2012, 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 two start-up business units and improvement in 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 the number of automobile vehicles produced, investment by OEMs in drivetrain architecture, the state of economic conditions and currency fluctuations.  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 2011 Annual Report, in our 2011 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