BRANTFORD, ONTARIO -- (Marketwire) -- 05/01/12 -- Wescast Industries Inc. (TSX: WCS.A) today reported first quarter sales of $77.2 million and net earnings of $0.3 million.
(In thousands of Canadian dollars, except per share amounts) Three Months Ended April 1, 2012 April 3, 2011 --------------- ---------------- Sales 77,175 71,606 Gross profit 6,814 9,692 Net earnings 318 1,406 Diluted net earnings per share 0.02 0.11 Cash derived from (applied to) operations 3,178 (7,027)
-- Recently the Company was awarded a 2011 Best Supplier of the Year award and a 2011 Best Supplier for Continuous Improvement award by two of its leading turbocharger customers. -- The Company reported consolidated sales of $77.2 million, an increase of 7.8% compared to the $71.6 million reported in the first quarter of 2011, reflecting higher sales generated by the Company's North American and Asian business units and lower sales in Europe. -- The Company reported gross profit of $6.8 million for the first quarter compared to gross profit of $9.7 million in 2011. The decline was a result of several factors including reduced operational performance, costs associated with a large number of customer program launches and lower casting and machining volumes in Europe. -- The Company reported first quarter net earnings of $0.3 million compared with net earnings of $1.4 million reported in 2011. The net earnings per share on a diluted basis were $0.02, compared with net earnings of $0.11 reported in the first quarter of 2011.
The Company's entire quarterly financial statements and Management's Discussion and Analysis will be available May 2, 2012 online at SEDAR, www.sedar.com.
Wescast Industries Inc. is a global automotive parts supplier that primarily designs, engineers, casts, machines and assembles high quality engineered exhaust system components, including exhaust manifolds, turbocharger housings and integrated turbomanifolds, as well as various other components for the car and light truck markets. The Company supplies to a diversified group of global original equipment manufacturers ("OEMs") and Tier 1 customers in North America, Europe, Asia, Africa, South America and Australia. The Company employs approximately 2,000 people in its regionally-based operations and sales and design centres in Canada, the United States, Hungary, China, Germany, Japan, the United Kingdom and France.
Learn more at www.wescast.com.
Forward Looking Statements
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 (including negative variations) 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: the result of Wescast's strategic alternative review and consummation of any transaction, 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