BRANTFORD, ONTARIO -- (Marketwire) -- 03/22/11 -- Wescast Industries Inc. (TSX: WCS.A) today reported fiscal 2010 sales of $261.9 million and net earnings of $16.8 million.
(In thousands of Canadian dollars, except per share amounts) Twelve months ended --------------------------------------- January 2, 2011 December 27, 2009 ----------------- --------------------- Sales 261,887 208,279 Gross profit 32,369 5,857 Net earnings (loss) 16,760 (22,010) Diluted net earnings (loss) per share 1.27 (1.67) Cash derived from operations 13,611 3,744 Highlights -- The Company reported 2010 consolidated sales of $261.9 million, an increase of 25.7% compared to the $208.3 million reported in fiscal 2009, reflecting significantly higher sales generated by the Company's North American, European and Asian business units. In addition to overall sales volumes increasing in 2010, the Company's Asian and European business units continue to launch many new programs resulting in a significant positive impact on each of those business units compared to 2009. -- The Company reported gross profit of $32.4 million for the 2010 fiscal year compared to gross profit of $5.9 million in 2009, due mainly to significantly higher sales volumes and reduced operating expenses and depreciation. -- The Company reported 2010 net earnings of $16.8 million, including a $13.0 million reversal of the valuation allowance against the Company's U.S. future income tax assets, compared with a net loss of $22.0 million reported in 2009. The net earnings per share on a diluted basis were $1.27, compared with a net loss of $1.67 reported in fiscal 2009. -- The Company generated cash from operations of $13.6 million during 2010 and ended the year with cash balances available of $17.7 million.
The Company's 2010 consolidated financial statements, Management's Discussion and Analysis and Annual Information Form will be available at www.sedar.com by the start of business on March 23, 2011.
Wescast Industries Inc. is the world's leading supplier of cast exhaust manifolds for passenger cars and light trucks. In addition to other products, the Company designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbocharger housings and integrated turbomanifolds for automotive original equipment manufacturers ("OEMs") and Tier 1 customers for the car and light truck markets in North America, Europe, Asia, Africa, South America and Australia. The Company employs approximately 1,900 people in 7 production facilities and 5 sales and design centres in Canada, Hungary, the United States, Germany, Japan and China. The Company also has sales and technical design representation in the United Kingdom and France. The Company is recognized worldwide for its quality products, innovative design solutions and highly committed workforce.
Learn more at www.wescast.com.
The contents of this news release contain statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking statements based on certain assumptions. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Persons reading this news release are cautioned that such information may not be appropriate for other purposes. Such forward-looking statements may include financial and other projections as well as statements regarding Wescast's future plans, objectives or performance for the current period and subsequent periods and regarding the markets for our products. The words "may", "would", "could", "will", "likely", "expect", "anticipate", "estimate", "intend", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking statements. Persons reading this news release are cautioned that such statements are only predictions, and that Wescast's actual future results or performance may be materially different.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties principally relate to the risks associated with the automotive industry and include, but are not limited to: our operating and/or financial performance, including the effect of new accounting standards on our reported financial results, fluctuations in interest rates, changes in consumer and business confidence levels, consumers' personal debt levels, vehicle prices, the extent and nature of purchasing or leasing incentive campaigns offered by automotive manufacturers, environmental emission regulations, fuel prices and availability, the continuation and extent of outsourcing by automotive manufacturers, changes in raw material and other input costs, our ability to continue to meet customer specifications relating to product performance, cost, quality, delivery and service, industry cyclicality or seasonality, trade and/or labour issues or disruptions, customer pricing pressures, pricing concessions and cost absorptions, actual levels of program production volumes by our customers compared to original expectations, including program cancellations or delays, dependence on certain engine programs and the market success and consumer acceptance of the vehicles into which such powertrain products are installed, our relationship with and dependence on certain customers, currency exposure, failures in implementing Wescast's strategy, technological developments by Wescast's competitors and customers, government and regulatory policies and changes in the competitive environment in which Wescast operates.
Wescast does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.
Wescast Industries Inc.
Chief Financial Officer