MWW Automotive Group Reports Q2 FY 2011 Financial Results

HOWELL, Mich., May 17, 2011 /PRNewswire/ -- MWW Automotive Group (OTCBB: MWWC), a global design, engineering, and manufacturing firm serving some of the world's leading automotive manufacturers, announced today its financial results for the second quarter of fiscal 2011 ended March 31, 2011.

Net revenues were approximately $265,000 for the quarter ended March 31, 2011. The decrease is based on the impact of the unusually long-lasting complications in the general financial and automotive markets during the past twelve months, magnified by the recall and subsequent sales difficulties of Toyota, our largest customer, during the last twelve months. In addition, we are currently still processing the impact of the nuclear catastrophe in Japan, which has caused delays in the delivery of cars and crucial electronic and other parts for nearly all foreign and domestic manufacturers.

MWW has been preparing for this impact and accordingly, has streamlined its operations, reduced cost wherever possible without sacrificing production output and quality. The company has widened his market approach, won over new domestic automotive clients and recently has also entered into a new, large industrial project with a large European manufacturer. In addition, MWW is currently in the design phase of new spoilers and body-side moldings for the new vehicle models by several foreign and domestic manufacturers, expected to be launched this summer. The Company has been quoting on numerous paint projects for large domestic and foreign automotive and industrial manufacturers, and is working on new Toyota programs for the 2011 and 2012 programs that are expected to provide significant new revenue growth.

As announced earlier, the Company has currently quoted new business for about $19 Million in potential revenue and has already been awarded several new projects from domestic manufacturers, production of which is slated to begin in the 3rd and 4th quarter of 2011.

Based on the cost down exercises that have been implemented, selling, general, and administrative expenses were $675,033, compared to $1,208,890 during the quarter ended March 31, 2010. The Company has reduced cash required for operations by significantly reducing operating costs, streamlining its production and assembly process and reducing staff levels. In addition, the Company is successfully managing its current liabilities, while it continues to make changes in operations to improve cash flow and liquidity and pursue additional advantageous financing opportunities. At March 31, 2011, the derivative liability fair value, net with additions, decreased to $1,053,152 resulting in non-cash income in the current period of $605,866. Net loss decreased by $1,420,550 to a loss of ($762,464) from a loss of ($2,183,014). The improvement was primarily attributed to the gain on the change of fair value of the derivative liability during the six months ended March 31, 2011 and reduced operating expenses as compared to a loss of $44,195 for the same period last year.

Despite this temporary decrease in revenues, MWW's new management team has made significant progress on the Company's path of recovery, including the elimination of low gross margin products and  the re-focus on high-margin, leading-edge products, including those offered by its "Class A" painting facility.

Milestones

1. Reduced liabilities by $1 million
2. Reduced SG & A by 50 %
3. Reduced loss from operations in 2011 for both the 3 months and 6 months period compared to 2010, despite lower revenues during 2011.
4. Reduced inventory to reflect current sales patterns and reduce capital requirements
5. Reduced line of credit and notes payable by $700,000.
6. Expanded into the industrial manufacturing sector.
7. Received largest number of Requests for Quotes (RFQs) in the Company's history.

As of now, the Company has commenced production of several new programs with automakers such as Chevrolet, Nissan, and Ford and several Tier1 manufacturers at its Class A painting facility. The company is currently in the final stage of the approval process for a large industrial project with one of the largest global manufacturers of industrial equipment. While the company is still expecting some impact from the delays caused by the Japanese disaster, the full positive impact of these new programs is expected to be reported in the third and fourth quarter financials ending June 30, 2011 and September 30, 2011. Subsequent increased sales levels are expected during 2012 and 2013, based on ongoing production and additionally the currently building pent up demand.

"Recently there have been several tragic global events out of our control that have unexpectedly and negatively impacted our revenue development," stated Chuck Pinkerton, CEO of MWW. "Based on our capability to adjust resources and production capacity dynamically, we have been able to react quickly with the necessary changes that allowed us to make the best out of a globally difficult situation. Once it became evident that the disaster in Japan would have a major effect on global parts and product supply, MWW immediately purchased a 180 day supply of all necessary products to assure our clients of an uninterrupted supply of MWW products, while the overall industry righted itself. Although the automotive industry remains and will continue to be our core competency, our marketplace and customer diversification program is currently aggressively moving MWW into the Agricultural, Commercial and Industrial Marketplaces.

We feel confident that with the actions that have been implemented by us and the timely commencement of our new projects, MWW will soon return to increasing revenue and profitability and will succeed in our efforts to significantly enhance shareholder value throughout 2011 and beyond. Our entire team is dedicated to meeting this goal." Please review the complete 10Q report at http://sec.gov

About MWW Automotive Group

Headquartered in Howell, Michigan, with a "Class A" painting facilities in Baroda, Michigan, MWW Automotive Group  (OTCBB: 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 fully utilize its combined design and manufacturing resources to consistently provide the most innovative, leading edge and high quality automotive and industrial 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 , e-mail [email protected] or visit http://sec.gov for complete company filings.

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