TORONTO, July 25 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced results for its third quarter ended June 30, 2007. In addition, the Company announced that a quarterly cash dividend of $0.015 per share will be paid September 28, 2007 to shareholders of record on September 14, 2007. The dividend is an "eligible dividend" in the accordance with Section 89(14) of the Income Tax Act of Canada.
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9 Months Ended 3 Months ended
June 30 June 30
($000s, except per share amounts)
2007 2006 2007 2006
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Sales $159,052 $156,896 $54,919 $52,739
Net income (loss)
before taxes $7,507 ($714) $3,091 $2,980
Net income (loss) $5,135 ($3,757) $2,168 $1,607
Basic and diluted earnings
(loss) per share $0.12 ($0.09) $0.05 $0.04
Common shares
outstanding 41,448,000 41,606,000 41,448,000 41,606,000
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Exco Technologies Limited recorded net income of $2.2 million, or 5 cents per share, on revenues of $54.9 million. In the same quarter last year, the Company recorded net profit of $1.6 million, or 4 cents per share, on revenue of $52.7 million. The improvement in net income is primarily attributable to strong earnings at Polydesign which has now ramped up the Honda Civic and CRV seat cover and headrest programs to full production levels and significantly reduced losses at Techmire commensurate with improving sales and a lower cost structure than last year.
Recently, the Company announced the award of major engine block and transmission case mould programs for Chrysler, Ford and one new American OEM totalling, in the aggregate, approximately $75 million in sales over five years. Since then Exco has been awarded further I-4 engine block programs for Hyundai. The Company expects to secure additional programs in the next quarter.
"We are pleased with our success in securing this powertrain mould business. Not only will it allow our large mould plants to operate at higher capacity for several years to come, but it diversifies our customer base and validates our leading edge capabilities in the design and manufacture of powertrain systems," said Brian Robbins, President and CEO of Exco Technologies Limited. "We feel this business will have a major impact on improving the Company's margins next year without significant capital expenditures."
The extrusion die and Castool businesses continue to grow sales and gain market share in the Americas as industrial markets, particularly in the US, demonstrate strong resiliency. In the quarter, Polytech has launched a $2 million per annum program for the Saturn Vue and has been awarded additional programs launching next year. The move to its recently purchased larger production facility will allow for more production and a lower cost structure. Neocon has, in the quarter, successfully launched its first Toyota OEM program for the Highlander and is expected to launch a variety of new programs over the next several quarters.
(for further information please refer to the Company's Third Quarter Interim Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedar.com after July 25, 2007.)
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 13 strategic locations, we employ 2,200 people and service a diverse and broad customer base.
Management will hold a conference call to discuss the third quarter results on Thursday July 26, 2007 at 11:00 am (EST). The local dial in number for the call is (416) 644-3420 or toll free 1-800-732-1073. To access the live audio webcast, please log on to www.excocorp.com or www.q1234.com a few minutes before the event. Real Player is required for access. For those unable to participate on July 26, 2007, 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. 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. 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 include, among other things: industry cyclicality; global economic conditions, causing decreases in automobile production volumes and demand for capital goods; changing demand for specific models or products; price reduction pressures; pressure to absorb certain fixed costs; dependence on major customers and changes in such customers' financial capabilities; technological changes; compliance with various laws; obtaining necessary permits and consents; fluctuations in currency exchange and interest rates; employee work stoppages; dependence on key employees; the competitive nature of the automotive and capital goods industries, including competition with suppliers operating in low cost countries; product supply and demand; the conduct of business in foreign countries; and other risks, uncertainties and assumptions as described in the Company's Management's Discussion and Analysis included in our 2006 Annual Report, in our 2006 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 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.
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