PENDLETON, Ind. – Remy has announced its financial results for the quarter ended March 31, 2012.
The company reported net sales of $293 million for the first quarter 2012, a decrease of 4 percent compared to $306 million for the first quarter of 2011. The company also announced net income attributable to common shareholders of $8.7 million.
Remy’s board of directors declared a 10-cent quarterly dividend to May 14 shareholders of record, which will be payable on May 21. The company also says it paid down $7.8 million of long-term debt. Net debt was $233 million at the end of the quarter.
Remy also reported that it secured major new business awards in the aftermarket and hybrid segments, and hired Mark McFeely as chief operations officer responsible for manufacturing, engineering and supply chain.
John Weber, Remy International president and CEO, said, "Remy had a solid first quarter, with several noteworthy highlights. Mark McFeely joined Remy as our new chief operations officer. Mark brings a wealth of experience to the company and will help transform how we design, build and source our products. We entered into a new long-term supply agreement with Enova, a hybrid vehicle integrator. We secured a hybrid contract with a major North American commercial transmission supplier. Our aftermarket business was awarded a major new contract with Pronto, one of North America’s largest warehouse distribution buying groups."
Fred Knechtel, Remy International CFO, added, "Our underlying business continued to perform well in the first quarter. Operating performance improved relative to the fourth quarter of last year despite weakness in the European market and softening in the U.S. aftermarket segment. In the first quarter, we made significant investments to support hybrid development, new product launches, growth initiatives, develop and protect our intellectual property and improve supply chain cost. We will continue to make these investments throughout the year."
Weber continued, "We remain focused on driving value through rotating electric leadership. We will build on market-leading positions in commercial vehicle products, leverage original equipment and aftermarket synergies, invest in hybrid technology, focus on opportunities in Asia and South America and pursue accretive strategic partnerships and acquisitions. Our recently announced dividend payment reflects an opportunity to return value to our shareholders and preserves our ability to invest in the future."
