PENDLETON, Ind. -- Remy International has announced today its operating results for 2008. Sales for the year were $1,101 million compared to $1,129 million a year earlier, a 2.5 percent decrease. Earnings before interest, taxes, depreciation, amortization and restructuring charges (EBITDAR) for the year increased 75 percent to $96.3 million from $53.9 million in 2007. Gross profit less S,G&A increased 143 percent to $74.6 million in 2008 from $30.7 million in 2007.
"I am pleased to report that in this difficult and challenging market, Remy met the goals set forth in the disclosure statement, reporting EBITDAR of $96.3 million for 2008," said John Weber, Remy International president and chief executive officer. He continued, "We feel this is incredible performance during the industry meltdown as we delivered on the projected EBITDAR in the Solicitation and Disclosure Statement we published as part of our restructuring almost two years ago. It is not news that our markets are materially different than those foreseen in those disclosure statements.
"Our results reflect the benefits of sales mix, price actions, continued aggressive cost controls and savings resulting from our Global Savings Program initiatives. These results were achieved in spite of dramatic vehicle production declines in the U.S. market. Poor economic conditions also impacted our Heavy Duty and Aftermarket Sales in the last half of 2008. We consolidated facilities, closing 14 facilities, and reduced headcount by 20 percent. Our liquidity is fully sufficient to meet our needs and we met all covenant requirements. Though we expect 2009 to be another challenging year, as we did in 2008, we are ready to take actions to meet these challenges head-on.
"In today's highly volatile marketplace, it would be imprudent at best to forecast 2009 performance. The projections delineated in the disclosure statements of 2007 are no longer relevant. I can say with certainty, however, that the Remy team is dedicated to delivering superior performance. We have shown we know how to do that and will continue to deliver. We expect that we will have sufficient liquidity and be able to meet all bank covenants in 2009."
