HOWELL, Mich., Feb. 22, 2011 /PRNewswire/ -- MWW Automotive Group (OTC Bulletin Board: MWWC), a global design, engineering, and manufacturing firm serving some of the world's leading automotive manufacturers, announced today that its financial results for the first quarter of fiscal 2011 ended December 31, 2010.
For the three months ending December 31, 2010, MWW reported net sales of $594,509, a decrease of $597,657 compared to $1,192,166 for the first quarter of fiscal 2010. This decrease was driven by the typical seasonal decline in sales during the period, compounded by a reduction in orders from two of the Company's customers. The decrease was based on unusual delays during the transfer period for new model changes at a large global manufacturer, causing orders for new product to MWW to also be delayed.
Despite this temporary decrease in revenues, MWW's new management team has made significant progress on the Company's path of recovery, including eliminating low gross margin products and re-focusing on high-margin, leading-edge products, including those offered by its "Class A" painting facility. During the first fiscal quarter of 2011 MWW has expanded its customer base significantly by adding other large global and domestic manufacturers that provide improved downside protection through diversification, with the largest number of new projects in the Company's entire history having already been quoted to those new manufacturers.
Operating loss was reduced by $228,445 to a loss of ($183,202) in the first quarter of 2011, compared to an operating loss of ($411,647) in the first quarter of 2009. This improvement was primarily attributable to the impact of the successful corporate-wide cost reduction exercises and streamlining of operations, with significant improvements made at MWW's painting and assembly facility.
Net income increased by $3,886,733 to $526,238 in the first quarter of fiscal 2011 from a loss of ($4,308,573). This increase was attributed to stringent cost reduction during the quarter and a gain on the change of fair value of the derivative liability during the three months ended December 31, 2010 with no such gain in the year-ago quarter
Over the last two quarters, MWW has focused on streamlining its operations, dynamically adjusting its expense structure, expanding into new geographical and vertical markets and securing contracts with highly viable customers that can further diversify its customer base and mitigate risk. As of now, the Company has commenced production on new contracts with automakers such as Hyundai, Nissan, and Ford at its Class A painting facility. The full impact of these new productions will be reported in the third quarter ending June 30, 2011 financials.
"Despite a seasonal downturn in sales caused by the unexpected model change delays at some of our major customers during the second calendar half of 2010, MWW achieved a turnaround resulting in a profit in the first fiscal quarter of 201, as compared to a net loss reported in the fourth quarter ended September 30, 2010 as well as the year-ago quarter ended December 31, 2010. The strategic restructuring process undertaken by our new management team is beginning to pay off. MWW has improved scales of economy in production, decreased operational expenses and G&A, so that a greater portion of net sales can drop down to the bottom-line. As a result of these measures and anticipated sales growth, we expect our trend to profitability to continue in 2011 and 2012", stated Chuck Pinkerton, the new CEO of MWW. " In addition to our long-standing customer base, MWW has a strong pipeline of new projects with major customers that are in their pre-production and production phase. We feel confident that with the commencement of these new projects, MWW can enhance shareholder value throughout 2011 and 2012."
About MWW Automotive Group
Headquartered in Howell, Michigan, with a "Class A" painting facilities in Baroda, Michigan, MWW Automotive Group (OTC Bulletin Board: MWWC) delivers its products, designs and Class A painting services directly to select global automobile manufacturers' vehicle processing centers (VPC), distribution centers and/or assembly lines in the United States, Canada and Europe. The VPC's technical teams install the MWW designed and manufactured products in a variety of vehicle types that are channeled through them by the automobile manufacturer for distribution, and delivery of the accessorized automobiles into the dealer channels in their respective countries. The company's mission is to manifest its position as a truly global automotive company and to fully utilize its combined design and manufacturing resources to consistently provide the most innovative, leading edge and high quality automotive accessories for an increasingly demanding and dynamically changing global market. Noted for its adherence to the highest quality requirements, MWW products are designed and manufactured to meet and exceed customers' expectations and requirements. MWW provides substantial added value to the sale of vehicles for leading international automobile manufacturers such as Toyota, BMW, Hyundai, Kia Motors, GM and Ford. For more information please visit www.mwwautomotive.com or e-mail [email protected].
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
SOURCE MWW Automotive Group