|By Marketwired .||
|August 29, 2013 07:00 AM EDT||
VALLEY CITY, OH -- (Marketwired) -- 08/29/13 -- Shiloh Industries, Inc. (NASDAQ: SHLO) today reported financial results for the third quarter of its fiscal year ending Oct. 31, 2013.
Third Quarter Highlights:
- Sales revenue for the quarter ended July 31, 2013 improved 16.9 percent to $166.1 million, from the third quarter a year earlier.
- Gross profit for the quarter improved over 44 percent from the third quarter a year earlier and was $17.5 million, or 10.5 percent of sales revenue.
- Operating income for the quarter improved 108 percent to $8.2 million, from the third quarter a year earlier.
- Net income per share diluted improved 121 percent to $0.31 for the quarter, compared to net income of $0.14 per share diluted from the prior year third quarter.
Third Quarter 2013 Results:
The company reported sales revenue of $166.1 million for the third quarter of fiscal year 2013, an increase of 16.9 percent from $142.0 million in the same quarter of the previous year. Increased revenues are reflective of a 3.8 percent improvement in North American car and light truck industry production volume compared to the third quarter of 2012, new product launches and revenues from acquired companies.
Gross profit for the third quarter improved 44 percent to $17.5 million, or 10.5 percent of sales revenue, compared to $12.2 million or 8.6 percent of sales revenue for the third quarter of 2012. Improved productivity, increased sales volume and reductions in fixed manufacturing expenses contributed to the increase.
For the third quarter of fiscal 2013, operating income improved over 108 percent to $8.2 million, compared to $3.9 million in the third quarter of the previous year.
The company reported net income for the third quarter of fiscal year 2013 of $5.3 million or $0.31 per share diluted, an improvement of 121 percent compared to the third quarter of 2012 net income of $2.4 million or $0.14 per share diluted.
First Nine Months 2013 Results:
Operating income for the first nine months of fiscal 2013 improved approximately 42 percent to $23.8 million, compared to $16.8 million for the first nine months of the previous year. Net income for the first nine months of fiscal 2013 was $15.1 million or $0.89 per share diluted, an improvement of over 50 percent from the prior year's net income of $9.9 million, or $0.59 per share diluted. The improvement reflects an increase in sales volume of $56.4 million, or 12.9 percent, to sales for the first nine months of fiscal 2013 of $493.6 million and a 29.6 percent improvement in gross margin driven primarily by productivity improvements, the successful integration of acquisitions and smooth product launches.
"Shiloh's profitability continues to improve not only as revenues increase from higher North American vehicle production levels and new sales growth, but also as a result of our focus on continued productivity improvements," said Ramzi Hermiz, president and chief executive officer. "As we progress through the remainder of fiscal 2013, we are strategically aligned to take advantage of the improved industry trends and vehicle demand in North America. Our strategy of leading with technology and innovation to become the premier lightweighting and NVH solution provider will be a driving force for our team to move forward with purpose and speed to achieve sustainable, global, profitable growth and world class results."
Headquartered in Valley City, Ohio, Shiloh Industries provides lightweighting and noise and vibration solutions to automotive, commercial vehicle and other industrial markets through its imaginative thinking and advanced capabilities. Shiloh delivers these solutions through the design, engineering and manufacturing of high-pressure die castings, first operation precision blanks, engineered welded blanks, complex stampings, modular assemblies and its patented ShilohCore acoustic laminate metal solution. The company has operations in Alabama, Ohio, Georgia, Michigan, Tennessee, Kentucky, Wisconsin, Indiana and Mexico, and has approximately 1,820 employees. For more information visit www.shiloh.com.
A conference call to discuss third quarter of fiscal 2013 results will be held on Thursday, August 29, 2013, at 11:00 a.m. EDT. To listen to the conference call, dial (888) 576-4398 approximately five minutes prior to the start time and request the Shiloh Industries third quarter conference call.
Certain statements made by Shiloh Industries, Inc. in this release and other periodic oral and written statements, including filings with the Securities and Exchange Commission, regarding the Company's operating performance, events or developments that the Company believes or expects to occur in the future, including those that discuss strategies, goals, outlook or other non-historical matters, or which relate to future sales, earnings expectations, cost savings, awarded sales, volume growth, earnings or general belief in the Company's expectations of future operating results are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made on the basis of management's assumptions and expectations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all, of the risks include the ability of the Company to accomplish its strategic objectives with respect to implementing its sustainable business model; the ability to obtain future sales; changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities; costs related to legal and administrative matters; the Company's ability to realize cost savings expected to offset price concessions; the Company's ability to successfully integrate acquired businesses; inefficiencies related to production and product launches that are greater than anticipated; changes in technology and technological risks; increased fuel and utility costs; work stoppages and strikes at the Company's facilities and that of the Company's customers or suppliers; the Company's dependence on the automotive and heavy truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending, which is subject to the impact of domestic and international economic conditions, including increased energy costs affecting car and light truck production, and regulations and policies regarding international trade; financial and business downturns of the Company's customers or vendors, including any production cutbacks or bankruptcies; increases in the price of, or limitations on the availability of, steel, the Company's primary raw material, or decreases in the price of scrap steel; the successful launch and consumer acceptance of new vehicles for which the Company supplies parts; the occurrence of any event or condition that may be deemed a material adverse effect under the Credit Agreement or a decrease in customer demand which could cause a covenant default under the Credit Agreement; pension plan funding requirements; and other factors, uncertainties, challenges and risks detailed in the Company's other public filings with the Securities and Exchange Commission. Any or all of these risks and uncertainties could cause actual results to differ materially from those reflected in the forward-looking statements. These forward-looking statements reflect management's analysis only as of the date of this release.
The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. In addition to the disclosures contained herein, readers should carefully review risks and uncertainties contained in other documents the Company files from time to time with the Securities and Exchange Commission.
Thomas M. Dugan
Vice President of Finance and Treasurer
Shiloh Industries, Inc.