Remy International Posts Profit DropPosted: Updated:
Pendleton-based Remy International Inc. (Nasdaq: REMY) is reporting net income of $10.4 million for the third quarter, compared to $96.5 million during the same period last year. The company says the 2012 results included nearly $85 million in deferred tax benefits and some restructuring charges. October 30, 2013
PENDLETON, Ind., Oct. 29, 2013 -- Remy International, Inc. (NASDAQ: REMY), a leading worldwide manufacturer, remanufacturer, and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors, today announced its financial results for the third quarter ended September 30, 2013.
Third Quarter Highlights
Net sales of $262.8 million for the third quarter of 2013, a decline of 5% compared to $277.4 million for the third quarter of 2012. Prior year results included high inventory stock builds by North American retail aftermarket customers and light duty original equipment sales on customer programs ended per schedule in 2013.
Adjusted EBITDA of $33.0 million for the third quarter of 2013 compared to $35.7 million for the third quarter of 2012. Third quarter 2013 results were impacted by lower volume, mix, price and investments in inventory for increased light duty aftermarket availability and China ramp up costs. Cost reductions and operational efficiencies partially offset these impacts.
Net income attributable to common stockholders was $10.4 million for the third quarter of 2013 compared to $96.5 million for the third quarter of 2012.
Third quarter 2013 results included $1.5 million in restructuring charges
Third quarter 2012 results included the reversal of an $84.7 million valuation allowance on our deferred tax asset balance, as well as $5.4 million of charges primarily related to restructuring activities and actions to improve future operating performance.
New business awarded and launched during the quarter:
Awarded several light duty OE starter programs with key customers
Launched first alternator with LIN regulator in China
Awarded heavy duty alternator and starter business at Yunnei Power Engine
Awarded additional hybrid business with Via and Scania
Secured agreements with multiple North American and European aftermarket customers
Released new part numbers to expand late model product portfolio
On October 29, 2013, the Board of Directors declared a quarterly dividend of $0.10 per share payable on November 27, 2013 to shareholders of record as of November 13, 2013.
Fred Knechtel, Remy International, Inc. Sr. Vice President, CFO and Treasurer, added, "Sales pressures continued in the third quarter, as sales were lower than both the previous quarter and prior year quarter. Despite this pressure, Remy was able to deliver greater operating income results in the third quarter compared to both of these periods. These achievements are due to our continued efforts to drive for sustainable operational improvements and aggressively control spending."
Jay Pittas, Remy International, Inc. President and CEO commented, "We took aggressive cost actions as a short term response to general market conditions. For the long term we continued to make necessary investments in our business to grow revenue and increase operating efficiencies. We strive to have a balanced portfolio between North America and the rest of the world and between the aftermarket and OE, with a flexible cost structure to support all market conditions. The Remy team will continue to be focused on driving superior long-term value for shareholders. I am excited about the future and believe that we are well positioned with our portfolio of products to achieve our goals."
About Remy International, Inc.
Founded by the Remy Brothers in 1896, Remy International, Inc. is a leading global manufacturer and remanufacturer of alternators, starter motors and electric traction motors. Headquartered in Pendleton, IN, with global operations across five continents and 10 countries, Remy International markets products under the Delco Remy®, Remy® and World Wide Automotive® brands. Known for innovation, efficiency, quality, and best-in-class customer service and support, Remy International's products are integrated by leading industrial, specialty, automotive and heavy-duty OEMs, and aftermarket providers worldwide. We Start the World & Keep It RunningTM.Source: Remy International Inc.